Ordinarily, they are the closest to the people. But over the years, the relevance of the third tier of government has been questioned over what the people generally describe as non-performance. The consensus has always been that the people at the grassroots do not feel the impact of local governments.

However those who administer the grassroots administrations nationwide are quick to cite paucity of funds occasioned by strangulating debt profile inherited from successive administrations as the clog in the wheel of credible performance at the local government levels. Indeed most local governments in the country literally go to sleep after exhausting their monthly intake from the federation account on payment of salaries and other recurrent expenditures.

Ogun State has finally broken that jinx. Thanks to an ingenious but painstaking process initiated by Otunba Gbenga Daniel, Governor of Ogun State. Now all the 20 local governments in Ogun State are free of debts. As at Wednesday September 15, 2008, the local governments had repaid a total of N4 billion debt owed individuals, corporate bodies and financial institutions. The debts, which involved all the local governments, dated back to 1999.

Yanju Lipede, Chairman of Abeokuta South local government said before the initiative which saw the liquidation of the debt, the premier local government in the State was paying back bank interest of N44 million on a loan totaling N288 million. It was not just bank loan of about N1. 2 Billion that was the main problem of the local governments in the Gateway State. The 20 local government councils owed career officers, retired teachers and other staff close to N1.7 billion in pension and gratuity while Past political officials were owed N1.2 billion in severance entitlements. Under such a huge debt profile Lipede said it was difficult to get money to finance developmental projects and cater for other needs of the people at the grassroots.

This was the situation at the time governor Daniel intervened. The first step the Governor, who was determined to ensure that the good governance in the state is replicated at the grassroots, took was to set up a committee. The brief of the committee headed by the Chief of Staff, Dr Yomi Majekodunmi, was simple: ascertain the level of indebtedness and work out modalities for the repayment.

Also included as members of the committee were the commissioner for local government, Are Tunde Alabi, commissioner for Finance, Kehinde Sogunle, the Director General of the Bureau of Management and Budget and Auditor General of local government in the State. The committee in conjunction with the local government chairmen and their administrators decided to use the oil windfall payments from the federation account in the first two quarters of the year to pay the debt and free the local governments from the yoke of strangulating debt burden.

Now that close to N4 billion has been paid Yanju Lipede and his colleagues can heave a sigh of relief. According to Lipede, the era of no money to finance projects has gone. ”We are free now. We thank Governor Daniel for initiating the payment. The gesture will lessen our burden and allow us to concentrate on meaningful projects,” the chairman said while responding at the presentation of cheques for the repayment to financial institutions at the Governor’s Office recently.

Are Alabi himself a former Council Chief is elated about the development. He said in the history of the state this would be the first time that a Governor would show real interest in real development at the grassroots and performance of local Government administrators. The Commissioner said with the liquidation of the debts the people of the 20 local Governments should expect a better deal from their elected representatives. He enjoined the Chairmen to emulate the good governance of Governor Daniel that has transformed the entire landscape of the Gateway State.

Governor Daniel said he decided to champion the repayment of the debt to ensure that local government administrators concentrate on welfare projects that will better the lot of the people. He said the practice of councils using millions of Naira to service huge debts at the detriment of people oriented projects was antithetical to socio economic development.

Already the councils have been charged to be wary of getting into another debt trap by ensuring that they make judicious use of available resources for the betterment of the people. Ultimately the people of the grassroots will be the beneficiaries of the N4 billion debt repayments as local government administrators do not have any excuse not to perform. The State government has asked them to step up the provision of facilities at the primary schools and health care centres in their domains.

There are other gains from the payment of the debts. The lives of the beneficiaries have been turned around for good. Those of them who abandoned their building projects are back to sites. The effect is more jobs for bricklayers and other artisans across the state. A number of other beneficiaries have also rejuvenated their businesses while others are venturing into new areas. The injection of the monies has definitely lifted the economy of individuals and communities all over the State.

Other states in the federation desirous of turning around the fortune of their local governments can use the Ogun template. It is another good example of using sound political decision for the economic development of the polity.

•Adebanjo, a journalist, writes from Abeokuta