As we head for the end of the year, events in Ekiti State in the last two weeks, will definitely define the shape of what to expect in the new year. In Ekiti state government action and inaction determine the direction and shape of the state, socially, politically and economically. The only business in Ekiti is government and every other person in the state depend, on government directly or indirectly for survival.

By Rotimi Ojomoyela

2016 Budget

Signs of what to expect in the new year started with the presentation of 2016 appropriation bill of N67.044bn, christened ‘budget of reality’ to the state House of Assembly, by Governor Ayo Fayose, with a promise that 10,000 indigent citizens across the state would be paid N5,000 monthly from January next year.

Fayose

Fayose, who described the proposed budget as 83% of the 2015 budget of N80.78billion, said the reduction was informed by the desire to live within the means of the state and provide on achievable estimate rather than decorate the budget with unrealistic figures. In the budget three capital projects were mentioned and they are, construction of an overhead bridge, ultra modern market and an airport.

These projects are not only expected to generate revenues, as the contractors handling them are expected to pays certain percentage as taxes into the government coffers, they are also expected to generate employment.

Certain percentage of the labour force for these project are expected to be sourced by the contractors handling these projects locally. Financing of these projects, according to Governor Fayose, would be sourced from the much expected disbursement of the excess crude account.

Salary arrears and inherited debt

Another issue that has dominated the space in the last two weeks in Ekiti state is the issue of workers salaries. As at now the Ayo Fayose administration is owing workers in the state, two months salary arrears. But this did not come by design,  it was a result of consensus between the government and the leadership of the workforce.

Since the heavy short fall in the federal allocation to the state, from an average of N3 billion to an all time low of N1.4billion, per month, payment of salaries has been in bits and pieces. Selective method of payment was adopted by the Government but with the advice of workers that all workers should be paid at the same time, allocations of two months are now being merged to pay one month salaries.

For now, salaries of October and November are yet to be paid, but Fayose had promised to effect the payment of October before the Christmas, which invariably means that December and November would be carried over to 2016.

Effects of unpaid salaries

The inability of the government to pay salaries of workers, even at the Yuletide season is already affecting commerce in the state capital, as the usual buzz and flurry that surrounds the major markets in Ado-Ekiti, especially in this season have been very low. Markets and shopping malls  in the state have been shadow of theirsves, since patronage by the Civil Servants have diminished.

Govt’s tax drive

Another vexatious issue that has attracted attention in the last days of this year and which is bound to raise a lot of dust in the new year is tax. Recently, the government had light skirmishes with tipper owners association over the introduction of a new tax regime by the government, they not only vowed not to pay the new tax, they also pulled out their services. But this has since been settled between the two parties. With government shifting ground that instead of N1,000 earlier imposed per trip, they should now pay N500 effective from January next year.

The association, in conjunction with the state government fixed a new rate per load of sand and gravel, which would now make the later to go for N14,000 from N12,000 and the former from N24,000 to N28,000 respectively. The same applied to the butchers association, whose members were asked to pay a tax of N1000 per cow slaughtered in government abattoirs across the state. Their protest against the policy led to the closure of all the abattoirs in the state, but like that of tipper owner association, the matter was resolved but with a resultant consequence on the consumers. The butchers now shift a kilo of meat from N1000 to N1200.

Local Government election

Another issue that is expected to shape political activities in the state in the new year is the local government election, scheduled for this Saturday. This tier of government has been without elected officials for sometime now, precisely six years.

Legal hurdles had been the encumbered attempts by the Kayode Fayemi administration to conduct elections into the council areas. The Peoples Democratic Party had gone to court to challenge the composition of the State Independent Electoral Commission, accusing the government of populating the SIEC with card carrying members of the APC.

Caretaker Committees were put in place by Fayemi to administer the 16 Local government areas. The PDP led government of Ayo Fayose, however inaugurated another SIEC, vowing to conduct election into the local government area, but his action was challenged in court by the All Progressive Congress, who accused him of appointing his party men into the electoral umpire.

But an Ado-Ekiti High Court  struck out the APC case, therefore clearing the way for the election which held on Saturday, December 19. 2016 promises to be an interesting year in the state, most especially now that the signs from every angle, seem very ominous. How the state wriggles out of the financial mess and stabilizes the economy of the state which is already beleaguered with huge debt profile would be very interesting.

Another political issue that may cause hiccups in the state, would be the much expected report of the military panel on the involvement of his men in Ekiti June 21 2014 Governorship election.