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ENetSuD Raises Alarms Over Financial Woes of Asa, Baruten Local Government Areas 

By Omowumi Omotosho

 

 

The Elites Network for Sustainable Development (ENetSuD), a Kwara-based advocacy group, has raised concerns over the financial management of the Asa Local Government Area (LGA) in Kwara State. According to a statement released by ENetSuD on Tuesday, the group argued that Asa LGA remains financially insolvent, despite significant increases in federal allocations and other income sources over the past three years.

In the statement, ENetSuD explained that: “In year 2020, Asa LGA received a total income of ₦2,303,786,437, which included ₦1,167,945,656 as Statutory Allocation, ₦442,253,009 as its share of Value Added Tax (VAT) from the Federation Account, 10% IGR from KW-IRS (₦55,003,343), independent revenue by the LGA (₦7,163,125) and ₦423,718,698 as financial support from other LGAs in Kwara state through illegal JAAC arrangement to meet up its obligations, among other sources.

“In year 2021, the income of Asa LGA increased to ₦2,456,082,916 that was sourced from the statutory allocation (₦1,200,882,423), VAT (₦639,516,510), 10% IGR from KW-IRS (₦70,055,443), independent revenue by the LG (₦13,932,718), and contribution from other LGAs through illegal JAAC arrangement (₦404,563,881), among others.

“In the more recent year 2022, the total income of Asa LGA significantly increased to ₦3,120,970,584. This significant increase was largely associated with some of the sources, including Statutory Allocation (₦1,644,093,718), VAT (₦794,972,650), 10% IGR from KW-IRS (₦82,289,818), and Independent revenue of the LG (₦18,048,397), among others.

“Despite these significant increases in the various sources of income, Asa LGA still relied on other LGAs in Kwara state to survive. This was evident as it received ₦531,846,456 (17.04% of its income in the year 2022) as financial contributions from other LGAs through illegal JAAC arrangements.

“In the same year 2022, Asa LGA spent a huge sum of ₦3,112,553,886 as its expenditure. Some of the spending was made on staff salary (₦2,196,662,984), pension and gratuity (₦614,134,563), and capital projects (41,400,000), among others.

The remaining balance of Asa LGA in year 2022, after the expenditures was just ₦8,416,698.”

Despite the substantial income allocated to the LGA over these years, ENetSuD declared that Asa LGA remains “one of the least developed” in Kwara State. This persistent financial insolvency and low development indicators raise concerns over the effective utilization of funds intended for public services and infrastructure.

Furthermore, the Elites the Kwara-based civil society organization, disclosed that Edu Local Government Area (LGA) in Kwara State has allocated a significant portion of its funds to support other financially distressed LGAs over the last three years, with limited spending on its own community projects. According to ENetSuD’s findings, Edu LGA contributed a total of ₦349,027,477.53 to assist insolvent LGAs in Kwara State between 2020 and 2022, through what the group describes as an “illegal JAAC arrangement.

In its statement, ENetSuD detailed that “Between 2020 and 2022, Edu LGA gifted a sum of ₦349,027,477.53 to other insolvent LGAs in Kwara State, most of which are Asa, Ilorin West, Ilorin East, Ilorin South, and Moro LGAs.

“Specifically, a sum of ₦157,377,328.76 was deducted in 2020, ₦95,012,651 in 2021, and ₦96,637,479.77 in 2022 through the illegal JAAC arrangement to cater for the needs of those insolvent LGAs.

“However, the total amount spent by Edu LGA on capital projects to improve the lives of citizens in various communities of Edu LGA was just ₦141,260,201, which can be broken down to ₦11,211,000 in 2020, ₦77,720,301 in 2021, and ₦52,328,900 in 2022.

“ENetSuD noted that Edu is one of the least developed LGAs with communities having a huge infrastructural gaps in Kwara state. Despite the challenges confronting the communities in Edu LGA, it is not allowed to use its funds to cater for its communities,” ENetSuD argued.

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