Being the Text of an Address Presented by Governor Alex C. Otti, OFR, at the 18th Community of Practice Meeting of the Honourable Commissioners of Budget and Economic Planning in Nigeria on Wednesday, May 7, 2025 at the Banquet Hall of the Government House, Umuahia
Protocols
1. Planning is at the core of every worthwhile development initiative. Development is not a random event for it requires a realistic assessment of what available resources per time can achieve within a carefully structured framework of economic and social aspirations. The success of any society since the beginning of time is essentially about what happens at the planning room. Planning, therefore, precedes development and offers a logical insight into why some societies win the race for development while others falter. If there is one thing that has been learnt following the meteoric rise of several economies outside the traditional western economic blocs over the last 50 years, it is the fact that development can happen anywhere once the fundamentals are right and coordinated. In essence, development is the logical outcome of effective planning.
2. It also follows that very negligible development, if any, would occur in an environment where planning is treated as an avoidable inconvenience or given scant consideration like we find in many familiar places. The question then is: if it is established that planning is necessary for development while failure to plan inevitably births unpleasant social and economic outcomes, why should anyone choose not to plan? For me, the answer is simple: planning is very technical and requires extensive commitment in data gathering and analysis, stakeholder engagement and, of course, a sound awareness of what comes first in the order of social and economic priorities. Without a shadow of doubt, it would be impossible to plan without a competent team that appreciates the business and dynamics of planning. Planning can also not happen in a culture that favours the pull of conspicuous consumption over the discipline of delayed gratification.
3. In the light of the above, one can logically conclude that the absence of development is not destiny but the outcome of failing to do what needs to be done and avoid what is not necessary in the grand scheme of things. It is a matter of record that grandiose pronouncements by political leaders and projections that are not founded by reliable data cannot substitute for well-laid plans just as wishes and optimistic expressions by religious leaders and social influencers do not change the material reality of societies as much as evidence-based planning does.
4. I am quite excited that this meeting is happening at a most auspicious hour in view of its strategic importance in setting the tone for our national response to new developments within and outside the frontiers of the nation. The expectation is that a gathering of eggheads like we have in the room would provide a holistic direction in navigating the perils of the emerging global economic order with widespread anxiety arising from the geopolitics of tariffs and threats of aggravated recession, and an unprecedented realignment of global forces in ways that will have far-reaching implications for Nigeria and its sub-nationals.
5. On this note distinguished ladies and gentlemen, permit me to join our Honourable Commissioner for Budget and Planning, Mr Kingsley Anosike, and the very eminent personalities who spoke before now to welcome you to Umuahia, our capital city, for the 18th Community of Practice Meeting of the Honourable Commissioners of Budget and Economic Planning in Nigeria. Let me specially thank the organisers for the choice of Umuahia to host this important event. I am optimistic that you would all find your stay worthwhile.
6. As you already know, the interconnectedness of today’s business environment and the dynamic evolution of the global supply chain which provided the thrust for several nations to rise in the world economic ladder, also has its Achilles heel as we are now witnessing with events in far-flung corners of the world having dire impact for governments, businesses and families in other places. The challenge before us as we convene as planners is to evaluate what is happening here in Nigeria and elsewhere, and develop a coherent set of responses that would enable the country and its constituent states to reap from the gains of the emerging global economic order and carefully mitigate, through wise policy options and legal frameworks, the multiple headwinds that will inevitably follow.
7. Let me specially express my gratitude to the body of Commissioners for Budget and Economic Planning for choosing what I consider a most appropriate theme, “Local Government Autonomy: The Imperatives of Good Governance and Sustainable National Development,” for this gathering. I am excited with the choice of your theme because it speaks to subjects that concern every Nigerian — the local government system and the demands of good governance. With last year’s ruling by the Supreme Court on the autonomy of LGAs and implications for the disbursement of revenue from the central pool, an interaction like this is necessary to direct public expectations and guarantee the effective management of funds channelled towards the administration of the local governments.
8. I am also certain that your discussions would inevitably dovetail into the mechanisms for the funding and management of projects jointly owned by the State and local governments. The focus, in my estimation, should be more about collaboration — partnerships between the states and the local governments in project execution to obtain optimal social and economic outputs. I agree that the Constitution has clearly delineated the functions of each tier of government but again, there are multiple areas where the role of the states intersects with the constitutional responsibilities of the local governments so taking an exclusive by-the-book approach may short-change the people who should be the primary beneficiaries of the new regime.
9. Again, while it is true that the Constitution empowers the state houses of assembly to make laws with regards to the establishments, structure, composition, finance and functions of the local governments which is excellent and in line with best global practices, I would also recommend that this special assembly of technocrats puts up a policy framework for strengthening the instruments of joint planning amongst states and LGAs. Over the course of your interactions on the topic of local government autonomy, you may also take a moment to evaluate some new developments that have arisen since the Supreme Court judgment on local government autonomy in July 2024 and I would like to point to the public uncertainty on whether the ruling by the Court created a new federating unit and the debates over the making and enforcement of appropriation laws in the local governments, although Section 7 of the Constitution is very clear on the role of the state houses of assembly in this regard. The beautiful thing is that the Supreme Court judgement of July 11, 2024, did not nullify this constitutional provision so there may be need for more public enlightenment on the peculiarities of our federating system and the centrality of collaboration in planning and execution of development programmes.
10. As I had earlier mentioned, the Supreme Court judgement on local government autonomy presents a very unique opportunity for expanding the frontiers of our national experience as a federation but it also brought to the fore, a few unintended consequences that we need to carefully navigate in the push for a more perfect union. In the Constitution, responsibility for the provision of primary healthcare, basic, adult and vocational education and payment of salaries and pensions arising therefrom, payment of the entitlements of staff hired through the Local Government Service Commissions and the retirees thereto, payment of the entitlements of traditional rulers and the hierarchies related thereto and of course, community security establishments, all fall within the purview of local government administrations.
11. We know for certain that there are a few local governments in some states that can effectively take care of their constitutional responsibilities but what about the majority that would struggle to even scratch the surface in the same state? How do we manage the fallouts of one local government paying its workers and retirees as and when due while others do not or cannot, or where the quality of primary education and health services changes as you go from one local government area to the other? What happens when one local government area gives priority to security while lax security protocols exist in other places for reason of financial difficulties or misplaced administrative priorities? How about the setting up and management of the structures of service delivery — would it be financially prudent to have 774 universal basic education commissions and similar number of agencies managing primary health and human services for LGAs in the country? What are the implications for cost of governance, corruption and similar abuses?
These are difficult questions but again, nothing about managing the complexities of a federation is easy so we have to collectively wear our thinking caps and come up with a framework that affirms the spirit of the Supreme Court ruling, without undermining the functionality of the system itself.
12. The most important focus for me should be security and welfare of the common man in every community within the constituent units of the Nigerian federation as the Constitution clearly stipulates. May I also advise that my position must never be misconstrued to mean that places that have gotten their acts together in terms of development planning and revenue mobilisation be held back by those who have no plan for mining their peculiar advantages to pursue their critical development aspirations. No. We must never create a system that punishes the hardworking to favour those who would simply not lift a finger to do what is required of them. My recommendation therefore would be to evolve a system that encourages everyone to commit to expanding the pool of resources available but at the same time, is considerate to the extremely disadvantaged because a nation’s strength lies not in how it rewards the privileged, but in the support it extends to those who struggle.
13. Let me conclude by restating the central place of planning in our development pursuit. No meaningful progress can be made without intensive and consistent planning — one that responds to the evolution in social and economic realities. The gains of the Supreme Court ruling on local government autonomy in July last year can only manifest when stakeholders appreciate that absolute autonomy may not be immediately feasible in a federation with multiplicity of challenges that can only be effectively tackled through collaboration, joint planning and pooling of resources. The Economic Planning Boards across the states have to be reactivated and made effective to guarantee equitable and prudent use of resources pooled by the states and local governments as determined by the individual state houses of assembly.
14. While I would refrain from directing other states on how to pursue their overarching development priorities, my suggestion would be that whatever framework we develop regarding states and local government relationship within the framework of autonomy must prioritise prompt payment of the salaries and pensions of staff and retirees connected to the local government system across the federation, quality basic education and health services, security of lives and property within the communities, improved interactions amongst stakeholders, and all the other administrative functions that impact the lives of everyday Nigerians. The letters of the law must not take precedence over the spirit especially in a federating system like ours that is still vulnerable on many fronts. Thank you for listening and may your deliberations bear good fruits.
15. May God bless Abia State.
Dr Alex C. Otti, OFR,
7 May, 2025