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David Edevbie is Delta State Commissioner for Finance. In this interview with NAIJ.com’s Austin Oyibode in Asaba, Edevbie speaks on how the state is running the economy and making progress amidst the recession rocking the national economy among other issues of economic importance to Nigeria.
Excerpts:
How is Delta coping since the economy entered recession?
It is a continuous process of rationalizing expenses, consolidating taxes and revenues to improve transparency and generate more IGR. We are promoting public private partnership to attract more Foreign Direct Investments and revamping moribund state-owned assets and companies in a bid to make the state economy thrive.
We have also introduced the Treasury Single Account (TSA) to create better accountability by monitoring inflows and outflows from the state’s accounts.
How is the state managing salaries of workers with the understanding that allocations from the federal government have dropped drastically?
The allocations received by the state cannot meet up the recurrent and capital financial obligations on a monthly basis. Every month is always challenging between managing funds billed for capital projects and overhead costs.
David Edevbie, Delta State Commissioner for Finance
However on the average, we have been paying salaries on a monthly basis despite these challenges. This is a result of His Excellency, the Governor’s commitment to ensure that the state civil servants are motivated to remain productive.
There have been arguments on what allocations Delta has received from the federal government since the inception of this government. As Delta State Commissioner for Finance, what has the state received since May 29, 2015 till date?
The state has received approximately N7 billion per month on the average, since the start of the new administration. However, this figure has been less than the average over the last 6 months.
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Looking at the economy of Delta State, can you say the state is making progress economically?
Yes, the state is making progress. We have been able to manage our limited resources efficiently between capital and recurrent expenditures, despite challenges. A handful of capital projects concerning agriculture, power and ICT would be implemented before the end of the year. These and many more non-oil businesses will push Delta State’s economy northwards.
There are campaigns of economic diversification across the country. What is Delta putting in place to create other alternative sources of revenue?
Delta State is offering a new ambience of a commercial hub for doing profitable business and has put in place several policies and revisited some laws in a bid to significantly improve the ease of doing business in the State. There has also been focus on strengthening the non-oil sectors such as agriculture, solid minerals, tourism, real estate, information and communication technology, transportation. power, and others.
In this regard, deliberate efforts have been made to develop the Delta State economy. Just to mention a few, there is the entrepreneurship capacity building and job creation initiative from which schemes such as Enterprises Development Center (EDC), Graduate Employment Scheme (GEEP), Youth Agricultural Entrepreneurs Programme (YAGEP), Skills Training and Entrepreneurship Programme (STEP), Production and Processing Support Programme (PPSP), etc have been set up to empower Deltans.
Ifeanyi Okowa, Governor of Delta State
Others expansion and renovation of technical colleges; seamless registration of land, property and business premises through schemes like Fast Track 90, land reforms and liberalization of business registration; enhancing access to credit by establishing the Delta Micro, Small and Medium Enterprises Development Agency which oversees the extension and administration of customized loans to artisans, farmers, traders, women and youth entrepreneurs; using the Land Bank to facilitate access to land for agricultural, industrial and related investments; and setting up agro-industrial parks, agro-processing and agribusiness epicenters in Uzere, Abraka-Umutu and Ogwuashi-Uku to drive the commodity value chain for sustainable inclusive growth, job and wealth creation.
We are positive that these initiatives will improve socio-economic development, develop new businesses and eventually grow internally generated revenue through increased taxes, rates and fees.
How do you measure an economy under recession? In other words, what are the proofs to show that an economy is in recession?
In general terms, a recession is a period of significant decline in GDP across all sectors of the economy. Recession can be described as a period of negative growth for two consecutive quarters.
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The economy is in recession in line with what has already been stated by National Bureau of Statistics. High and increasing trend in inflation rate, high interest rate, low business turnover, low performing stock market, high unemployment rate among many others compared with previous years are strong economic indicators.
Youths undergoing orientation for skills acquisition program
What do you think led Nigeria to this level of recession?
Well, I would say largely that the high dependence on crude oil and the inability to significantly diversify into other viable sectors of the economy pushed the country into the recession we are in now.
Some say the speedy implementation of the Treasury Single Account (TSA) by the federal government, others say the pipelines that were vandalized by the Niger Delta Avengers crippled the oil economy, a development which led Nigeria to this level. As a financial expert, what do you think?
I don’t think so. The TSA would be beneficial to the Nigerian economy in the long run. Delta State is currently implementing TSA following the guidelines of the federal government. Similarly, the Niger Delta issue is being tackled at the moment, and I am hopeful that there would be a positive outcome. What matters most is for the federal government to resolve challenges surrounding both issues as soon as possible.
What do you think the federal government is not doing well that is bringing down the economy?
I would not say that the federal government is doing anything that is bringing down the economy. However, I would rather note that there should be a critical review and timely implementation of economic policies.
Some say there are no economic experts in President Buhari’s government as opposed to the days of Goodluck Jonathan, hence he has no sound personnel to fashion out good economic policies for the nation. Do you think so?
It is the President’s decision on the economic advisory team. I do not see anything wrong with the individuals selected.
What do you think Nigeria should do to come out of the present economic crisis?
As mentioned earlier, there should be a critical review and speedy implementation of economic as well as other policies. I should expect policies that would encourage the growth of the private sector which I believe, would be the fulcrum for economic growth. It is important that the federal government creates a more enabling business environment for the economy to thrive.
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