Katsina Gov Demands FG’s Clarification on Loans Repayment Following LG Autonomy

•BBS seeks collaborative research-based model for success

Francis Sardauna in Katsina and Oluchi Chibuzor in Lagos

Following the Supreme Court verdict on local government autonomy, Katsina State Governor, Dikko Umaru Radda, has demanded clarifications from the federal government on how loans jointly taken by the local and state governments would be repaid.

Radda, at an expanded council meeting yesterday, said the state and local governments had various loan-based projects funded by the World Bank and other multilateral organisations, hence the need for the federal government’s clarification on repayment.

“We must carefully understand the implication of this judgement on how loans will be repaid and how the future subsidiary loan agreements will be structured.

“These are severe areas for consideration, and it will help for the federal government to clarify this and other matters arising from the judgement,” he said.

He added that the fate of the state’s local government civil service commission and the local government pension board “become uncertain” following the Supreme Court judgement.

He explained that the Apex court judgement would also affect the state’s 2024 budget because it was designed based on the previous funding agreements between the state and local governments.

He said some critical engagements such as payment of salaries of teachers under the state universal basic education board, local government workers, pension and gratuity, among others impediments have to be addressed.

Radda said the Supreme Court verdict on the local government financial autonomy has jettisoned the nation’s constitutional provision for the state and local government joint account “on the basis that state governors abused the process.”

He added: “I will respectfully say that some of us try our best to manage our joint funds in a collective approach.”

He, however, said he has inaugurated a committee with representatives from the state, local governments, state House of Assembly and other experts to chart a way forward on the apex court judgement.

Meanwhile, the Babcock University Business School (BBS) has called for a collaborative research-based model to ensure that the newly financial autonomy granted to local governments was translated to impact at grassroots level.

The school  made this position at the three-day hybrid seminar with the theme, ‘The Uniqueness of Engagement At A Business School’, held in Lagos recently.

Speaking on the significance of the school’s 30 to 70 model in national development, Head BBS, Professor Akintoye Ishola, said the local governments must adopt collaborative research as a basis for funding social projects.

“Now, we are talking about local autonomy. There must be research, the government should now assemble academics like what we do in the business school. How can academics look at local governments to advance Nigeria’s economy? If not It is going to turn into another system where you just share the national cake.

“When we identify those problems, who are the researchers now? Like I told you at the business school you do not just come to school, register and take courses. 

“No, you go back to that local government for a minimum of three months, work hard and Identify those problems and compare them with all of the economies all over the world where the local government system is working,” he said.