Delta State's Development Conundrum: Good Governance or Resource Management?
By Osita Biose
The recent media vituperations between Delta State Government, through Rt Hon Sheriff Oborevwori's aide, Mr. Felix Ofou and the Federal Government through the Information Minister, Mohammed Idris, has brought to the fore, the issue of good governance and resource management in the state.
At the heart of the matter is the increased FAAC allocation of funds to the state. While Senator Ned Nwoko, representing Delta North Senatorial District had earlier exposed the amount coming to Delta State, stating that it was more than four states' allocations put together, the former Deputy Senate President, Senator Ovie Omo-Agege, only recently praised President Bola Ahmed Tunubu for his economic measures and the increased allocation to sub nationals, including Delta, but regretted that the gesture was not reflecting on the development of the state.
Governor Oborevwori blamed the alleged slow development of the state on the present inflationary trend caused by the supposed bad policies of the Federal Government, which he termed the floating of the naira and removal of fuel subsidy from petroleum products.
However, the Information Minister, Mohammed Idris, described the governor's statement as diversionary, calling on him to focus on development strides in line with his campaign promises and account for the huge FAAC money that has accrued to the state in BILLIONS, for the past 18 months.
The recent controversy surrounding Delta allocation has been a recurring decimal on the front burner of the state's economic and political discourse.
This revelation of increased FAAC allocation sparked fuss, with allegations that the state was heavily indebted by the previous administration; and that current inflationary trends made it worse, even in the face of increased FAAC allocations.
Economic experts have also weighed in on the issue, stating that the level of development in most states, not only Delta, is not commensurate with the allocations received by the subnational governments. They called on civil society and other anti-corruption groups to start scrutinizing the financial expenditures of state governments, stressing that most governors embezzled the allocations from FAAC every year .
The Delta State Government's budget performance report for 2023 provides some insight into the state's revenue and expenditure. For the first quarter of 2024, the state's revenue performance was 28.4% of the budgeted revenue, which includes government share of Federation Account, Mineral Revenue, and State Internally generated Revenue
(IGR).
To avoid further controversies on the utilization of federal allocation, the Delta State Government should provide a detailed breakdown of its revenue and expenditure. This would enable Deltans track how their state's allocation is being utilized.
Some of the key areas that the state government should focus on include:
- *Personnel Costs*: Salaries, wages, and benefits for state government employees.
- *Overhead Costs*: Recurring expenses such as utilities, maintenance, and supplies.
- *Capital Expenditure*: Investments in infrastructure, such as roads, bridges, and buildings.
- *Internally Generated Revenue (IGR)*: Revenue generated by the state government through taxes, fees, and other sources.
By providing a detailed account of its revenue and expenditure, the Delta State Government can demonstrate its commitment to transparency and accountability, and ensure that the state's allocation is utilized effectively for the benefit of all Deltans.
