Senator Abubakar Atiku Bagudu, minister of budget and economic planning, has cautioned state and local governments to demonstrate how they will put the money they receive each month from the Federation Account to work for their people.
Participating in ALGOVC, Nigeria’s Association of Local Government Vise Chairmen, 9th annual national conference, he delivered a speech on Thursday in Abuja.
Instead than only dispersing monies received from the Federation Account, the minister suggested that local governments should act as hubs for discovering and cultivating their regions’ economic potential.
When it comes to disbursing funds from the Federation Account, the local government is more than just an administrative hub. “We have been making that big of a mistake in the past,” he admitted.
Bagudu said that local governments should take stock of their communities’ assets and possibilities for economic development, and then help to transform them into revenue generators.
The Renewed Hope Ward Development Plan, he explained, is the federal government’s bottom-up strategy for identifying local resources, investment possibilities, and development requirements.
The minister emphasised the importance of council members assessing the economic prospects of their own wards.
Councils can better articulate their issues and make evidence-based requests to the Federal Government and development partners if they accurately assess the resources available in each ward, he added, adding that this will help them attract investors and create realistic plans.