Oyinlola And Oil Windfall

Mar 10th, 2010 | By Bankole Alao David | Category: EDITORIAL

The price of oil is still pushing northwards. With a mild recovery on the way after the tumultuous events last year on the world financial markets, we are now looking at the prospect of oil prices ranging between $80-$90 per barrel.

Translated into naira and kobo this should be good news for the citizens of Osun State. Sadly, it is not. There is an understandable sense of déjà vu, that we have seen it all before. Since about eight years ago there has been massive, unprecedented increases in oil earnings. Osun State as a component of the federation, a federating unit, has naturally benefited from this largesse. We must however add a caveat here. Unfortunately the generality of the people of the state have not seen any benefits, tangible or otherwise. All the benefits have accrued, unfairly, to a tiny parasitic elite surrounding the state government headed by Olagunsoye Oyinlola.

There is a clear criminal intent here. The state government did not work for the windfall, it just dropped as it were like manna from heaven. Allocation from the federation account is an entitlement, there is no debate about this. It constitutes a nice and easy present to each one of the republic’s federating components. Unlike internally generated revenue (IGR), it does not have to be worked for. IGR to be generated, needs careful planning, strategizing, as well as a solid administrative mechanism to implement. This is clearly beyond the intellectual preparation and the administrative acumen of Oyinlola’s deranged ‘government’.

So, what on earth has Oyinlola done with the windfall? You do not need the intellect of a Wole Soyinka to know where it has all disappeared into. The major bulk has gone into private pockets. The other bit has gone into catering for a whole host of frivolous activities as well as maintaining a parasitic crowd. For this reason, there is nothing to show for the windfall. Scholars have not been refurbished or expanded, access to healthcare is still very limited, where it exists and the infrastructure, both physical and social is in a state of total disrepair.

A sensible government will see the windfall as ‘extra-ordinary income’. Such income is supposed to be used as a buffer, a preparation for a rainy day. For this reason, a government such as that of Kuwait warehouses part of its oil ‘windfall’ revenue, into a ‘fund for future generation’. The fund by its name is self-explanatory. Excess income is put into the infrastructure to ensure the well being of the next generation. This makes sense for, the good times might not last forever. To use another example, the president of Venezuela, Hugo Chavez has directed excess oil income into revamping the country’s health and educational infrastructure with remarkable success. At home, there is no need to point the astonishing success and developmental strides achieved in Lagos State through sensible governance.

In the case of Osun State, the operating mantra is indolence leading to calamity. The government headed by Oyinlola is so bereft of ideas that it cannot even manage unearned income, that is, income it did not work for. Instead of developing the base for the self sustaining regeneration of the state’s economy, the money has gone into building an administrative machinery based on bureaucratic elephantiasis. To develop a productive base and expand an economy requires a tight lid on (unproductive) recurrent expenditure. Oyinlola who is obviously intellectually challenged simply cannot grasp this elementary truth.

Let us illustrate this statement of the obvious, with the observations of a wise man. In his valedictory summing-up on the 3rd of September, 1959, the avatar, Chief Obafemi Awolowo pointed out the eternal truths. Looking back on eights of cerebral governance as the premier of the Western Region, the sage observed that “In the field of public finance, perhaps the greatest achievement of the government during the past seven years have been a steady annual increase in public revenue coupled with the strictest control of public expenditure.”

The emphasis is absolutely crucial. As the sage summonted with seminal precurence, the economic development of the western region under his sensible guidance, “… was designed to bring about a steady but substantial increase in the real income of the people, enhance their standard of living, and thereby increase their taxable capacity.” Under Awolowo, 31.8 per cent of the region’s income was devoted to purely economic projects, 41.5 per cent to social services, and general administration claimed the remaining 26.7 per cent. The figures are enough to make one weep. For it shows how far we have traveled down the road of perfidy.

Oyinlola has clearly not read or studied the sage and frankly he doesn’t care. However, the people of Osun State care. They have been at the receiving end of a totally irresponsible government. Oyinlola cannot manage the oil windfall manna because he does not have the wherewithal to do so. This is why we must all look forward to a new day under the government-in-waiting of Engineer Rauf Aregbesola. Aregbe stands in the tradition of Awolowo. He will make a difference. With him in charge, in Osun State we will be able to say – “Yes we can!”

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  1. Babamatto March 10th, 2010 3:54 pm :

    PDP! Share the money!
    PDP!! Loot the treasury!!
    PDP!!! Rig the elections!!!

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