Oh One more thing the arm that the brake rod pulls on is about 180 out. It should point down not up.
Those shoes don't look so good. Pull them off, easy, just fold them in half.
Take the arm off of the shaft. Pull the shaft out. It looks pretty crusty, so you may have to drive it out. Watch for any shims on the shaft, you will need them. Clean the shaft and hole. There is a felt washer in the outer end of the shaft hole. Carefully remove it. Clean it and apply fresh grease. Grease the hole and shaft. Replace everything as it was. The shaft should spin fairly easily.
The greased up felt washers acts as a seal and grease reservoir. It keeps out crud and keeps the shaft lubed.
You might salvage the shoes by sand or bead blasting them. I might just replace them.
While blasting you can do the rest of the hub and brake plate. Then you can polish or paint, powder coat or whatever.
Leo