News
Abia, Enugu, Ebonyi lead in S’East as Govs leave huge debts behind
Out of the 28 states, 11 governors will be seeking re-election in March.
They include Governors Mohammed Yahaya of Gombe; Babagana Zulum (Borno); Abdullahi Sule (Nasarawa); Seyi Makinde (Oyo); Mai Buni (Yobe); Bello Matawalle (Zamfara); Babajide Sanwo-Olu (Lagos); Ahmadu Fintiri (Adamawa); Dapo Abiodun (Ogun); Bala Mohammed (Bauchi) and Abdulrahman Abdulrazak of Kwara state.
Those that will not be seeking re-elections are Emannuel Udom (Akwa Ibom); Samuel Ortom (Benue) Ifeanyi Okowa (Delta); David Umahi (Ebonyi); Mohammed Abubakar (Gombe) Aminu Masari (Katsina); Bello Bagudu (Kebbi); Abubakar Bello (Niger); Aminu Tambuwal (Sokoto); Simon Lalong (Plateau) and Darius Ishaku of Taraba.
Other governors that are not seeking re-election include the Kaduna State Governor, Nasiru El-rufai; Abdulahi Ganduje (Kano); Victor Ikpeazu (Abia); Ifeanyi Ugwuanyi (Enugu); Ben Ayade( Cross Rivers) and Nyesome Wike of Rivers.
The sub-national debts are classified into domestic-borrowings from local creditors and external-borrowings from foreign or international creditors like the World Bank.
The domestic and external debts published on the DMO’s website were as of September 30 and June 30, 2022, respectively.
According to the reports, sub-national domestic debts were about N4.38tn while their external debts were about $3.15bn or N1.42tn based on the exchange rate of the Central Bank of Nigeria of N449.53 to a dollar as of Thursday.
The data further shows that Lagos has the highest debt, with N877.04bn domestic debt and $1.27bn foreign debt.
It is followed by Kaduna, with a domestic debt of N86.86bn and external debt of $586.78m.
The third highest debt is Rivers, with a domestic debt of N225.51bn and foreign debt of $140.18m.
In the fourth highest debtor position is Cross Rivers, with N175.2bn domestic debt and $215.75m external debt.
It is followed by Ogun with N241.78bn domestic debt and $122.73m foreign debt.
Others include Bauchi (N144.28bn domestic debt and $172.76m external debt); Enugu (N89.89bn and $123.02m); Kano (N125.19bn and $109.42m); Abia (N104.57bn and $95.63m) and Adamawa (N122.48bn and $77.01m).
Other debtor states are Akwa Ibom (N219.62bn and $46.567m), Benue (N143.37bn and $30.47m), Borno (N96.33bn and $18.7m), Delta (N272.61bn and $60.05m), Ebonyi (N67.06bn and $59.84m), Gombe (N139.1bn and $46.93m), Jigawa (N44.41bn and $27.61m), Katsina (N62.37bn and $55.82m), Kebbi (N60.13bn and $42.40m), Kwara (N109.55bn and $45.94m), and Nasarawa (N72.63bn and $53.73m).
Also on the list are Niger (N98.26bn and $69.27m), Oyo (N160.07bn and $76.97m), Plateau (N151.90bn and $33.74m), Sokoto (N85.58bn and $37.13m), Taraba (N90.81bn and $22.28m), Yobe (N92.86bn and $23.09m) and Zamfara (N109.69bn and $29.33m).
The FCT had a domestic debt of N112.49bn and external debt of $25.38m.
These hese states and the FCT owed up to 81.72 per cent of the N5.36tn sub-national domestic debts and 69.08 per cent of $4.56bn external debts.
Speaking with our correspondent on Thursday over the phone, the Director, Portfolio Management Department of the DMO, Dele Afolabi, noted that each state was expected to send in quarterly information on their domestic debts.
He added that by being transparent with their debt profiles, states would be able to access more funding.
The debt servicing is done by the Federal Government but it is deducted from the federal allocation to the states.
States’ debts
In its December 2022 edition of the Nigeria Development Update, the World Bank noted that states’ debts would rise above 200 per cent of the revenue generated in 2022 and 2023.
The report read, “Debt levels for an average state are estimated to increase from 154.6 per cent of revenues in 2021 to above 200 per cent of revenues in both 2022 and 2023.”
According to the Washington-based bank, the increase in debts will be due to low allocation from the Federation Account, which will likely weaken the fiscal condition of the states.
The report added, “The fiscal condition of sub-national governments is expected to weaken in 2022, as Federation Account transfers for the average state are estimated to decline due to weak net oil revenue collection.
“For an average state, statutory transfers—the main source of state revenue—are estimated to decline by 5.5 per cent and internally generated revenue is estimated to remain at broadly the same levels as in 2021 (declining slightly by 0.8 percent).
‘’Nevertheless, total revenues for an average state are estimated to remain broadly unchanged in nominal terms as gains in VAT revenues are estimated to offset the declines in statutory transfers. However, expenditure is expected to increase by almost 4 per cent for an average state in nominal terms, especially capital expenditure, which is estimated to increase by 17.3 per cent in nominal terms in the run-up to the 2023 general election.
‘’Recurrent expenditure between 2021 and 2022 is estimated to have contracted by almost 5.4 per cent for an average state, raising concerns about accumulation of arrears. These trends are estimated to continue in 2023 with the fiscal position of the states weakening.”
The global lender had earlier said that Nigerian states will likely lose N18.8bn in oil and gas revenues in 2022, as worsening revenue collection at the federation level increases budgetary pressures for the states.
According to the bank, the declining revenue from the federation level has put many states in a precarious fiscal position.
It warned that many states would be unable to meet up with their expenditures, adding that there was an increase in debt servicing expenditures of states.
But the special Adviser Media and Publicity to the Cross River Governor, Christian Ita blamed the state’s debt burden on previous administrations.
He stated, “The debt burden on the state is something that was inherited by this administration. Indeed, as at May 29, 2015 when the current administration came on board, the state had attained the threshold of borrowing, a situation that made it impossible for the current administration to borrow.
“The disconcerting part is that while the administration was prevented from borrowing by the Debt Management Office, the federal government has been deducting between N1.6bn to N2bn monthly from the state’s allocation, thus leaving the state in dire straits.”
Speaking on its huge debt profile, the Lagos State government explained that its domestic and foreign debts were necessary because there was no other way the government could fund the projects executed in the state.
According to the estimate made by The PUNCH, Lagos state has the highest domestic debt of N876bn and a foreign debt of $1.27 bn.
Lagos defends debts
But the state Commissioner of Information, Mr Gbenga Omotoso, insisted that the debts were sustainable and would not hinder any development after May 29, adding that what the debts were used for was what mattered.
He said, “The debts are more than sustainable. Recently, Lagos State got a Fitch AA+ rating and what it means is that we are running our finances very well and we are super creditworthy. I think we are the only state in Nigeria to have had such a rating.
“Apart from that, people say Lagos State debt is high but the problem is not the high domestic or foreign debts but what they are used for. The United States of America has the highest debt profile in the world, yet many are flocking there. To borrow money to pay salaries is bad but to borrow it to fund projects that will generate revenue and provide jobs is good.
“Lagos has a high debt profile because it has embarked on and executed a lot of infrastructural and transport projects, among many that will in turn generate income. We have not expended up to 50 per cent of our Gross Domestic Product so we still have enough room to borrow money and that is why you see that people are turning over to Lagos because they know that the state is creditworthy.
“There is no way you can embark on the big projects that the Lagos State Government has executed without borrowing money. Where will the cash come from? Look at the Blue Rail, can you imagine the number of people it will be conveying daily and the jobs it has created? So there is no way you can fund that kind of project without borrowing money at all.
“This will never affect any development after May 29. In fact, if anything, it will bring more developments. By the time you say you save billions of naira to build a railway, even the people who should ride on it would have died, so one needs to find a way of funding it, and the better way is to borrow money, and local financial institutions are coming to Lagos to lend money to the government because they know the economy has a bright future.”
When contacted about the debts Governor Wike would be leaving for the incoming administration, the Rivers State Commissioner for Finance, Isaac Kamalu said he was in a meeting and could not comment.
Kaduna government
Similarly, there was no reaction from the Kaduna State Government when asked about its plans to address the huge debts on Thursday.
The Special Adviser on Media and Communication to the governor, Mr. Muyiwa Adekeye could not be reached on the phone and he did not respond to the query sent to him on the Whatsapp platform.
Officials of Ogun State Government kept mum as both the state Commissioner for Information and Strategy, Waheed Odusile and Chief Press Secretary to the state governor, Kunle Somorin did not respond to calls or messages sent to their phones.
Meanwhile, the All Progressives Congress in Delta State has kicked against alleged plan by Governor Okowa to borrow N40b.
The party in a statement on Thursday warned all commercial banks and lending institutions in the country to be wary of the outgoing PDP government in the state.
The party said, ‘’It has come to the notice of the public and to the knowledge of the All Progressive Congress that the government of Delta state is yet again negotiating a loan facility for N40b.’’
In the statement endorsed by the APC governorship candidate in Delta State, Senator Ovie Omo-Agege, the party noted with concern that “the need for such a facility has not been made public, neither has the purpose for which the credit is being sought.”
“It is also our knowledge that a bill seeking the approval for such a facility has not been presented before the House of Assembly and neither has approval been obtained”, it further stated.
Consequently, the party warned all commercial banks and lending institutions in the country to be wary of such borrowings.
The statement read partly, “Now therefore, be it known to all banks, lending institutions, credit agencies etc that any facility, loan, credit, advancement or borrowing by any other name known made or advanced to the government of Delta state in the course of the remaining tenure of the present administration will not be acceptable to the people of Delta state.
“The next administration and the citizens of Delta state will not be further encumbered by the rascality and profligacy of the present government.
“We state unequivocally that the state is over-borrowed and the citizens will not accept the encumbrance and obligations of further borrowing.’’
“If You Have Evidence Against Stanley Mbam, Charge Him; Otherwise, Release Him” — Oganiru Izzi
A socio-cultural organisation of Izzi extraction, Oganiru Izzi, has challenged Ebonyi State Governor, Chief Francis Ogbonna Nwifuru, to either release the state’s sacked Commissioner for Works, Mr Stanley Mbam, or charge him before a competent court if the government has credible evidence of wrongdoing against him.
The group said the continued detention of the former commissioner without a formal charge raises concerns about due process, constitutional rights and the rule of law.
The leader of Oganiru Izzi, Mr Godwin Mbam, made the demand while speaking with correspondents of National Issue Newspapers at the Crack Department of the Ebonyi State Police Command in Abakaliki.
Mbam condemned what he described as the prolonged detention of Stanley Mbam without allowing a court to determine whether he had committed any offence.
He challenged the state government to produce evidence if it believes the former commissioner committed a criminal offence.
“If there is credible evidence against him, charge him to court and let the court decide. If there is no case against him, he should be released,” Mbam said.
He also appealed to the Ebonyi State Police Command to uphold the Constitution and resist any pressure that could result in unlawful detention.
Vanco Flyover: “We Will Reveal the Full Details”
Mbam also issued a three-day challenge to Governor Nwifuru, declaring that if the former commissioner was not released or charged to court, his organisation would make public what it described as the “full details” of the Vanco Flyover project.
According to him, the proposed disclosure would address issues surrounding the project, including its funding, payments, contractual arrangements and other financial details.
“We will let the world know the full details of the Vanco Flyover and how the funds were utilised,” he warned.
He further challenged the state government to demonstrate transparency by making relevant documents concerning the project available to the public.
“What About the Alleged ₦1.5 Billion Forfeiture?”
The Izzi group also questioned what it described as the selective application of the state government’s anti-corruption campaign.
Mbam referred to allegations involving an account reportedly frozen by the Economic and Financial Crimes Commission (EFCC) and an alleged ₦1.5 billion forfeiture to the Federal Government.
He questioned why, according to him, the governor had allegedly not taken similar action if the facts surrounding the matter warranted it.
Mbam stressed that he was not opposed to the fight against corruption but insisted that any anti-corruption campaign must be comprehensive, transparent and applied equally.
“If Governor Nwifuru wants to fight corruption, let him fight it holistically. Nobody should be targeted while other serious allegations are ignored,” he said.
“If Nwifuru Says He Knows Nothing, We Will Produce the Facts”
Mbam further challenged Governor Nwifuru to publicly state whether he was aware of alleged corruption issues within the Ministry of Works.
“If Nwifuru publicly claims that he is unaware of corruption in the Works Ministry, I will make public the facts available to me. The facts will shock the state,” he declared.
He insisted that the matter should not degenerate into a political vendetta, arguing that the appropriate place to determine criminal liability is a court of law.
According to him, the people of Ebonyi State deserve clear answers concerning the Vanco Flyover and other issues involving public funds.
“Everybody Should Be Subject to the Law”
The Oganiru Izzi leader maintained that the controversy should be resolved through transparency, documentary evidence and due process.
“If there is a case, charge him. If there is no case, release him. The government cannot claim to be fighting corruption while abandoning the principles of justice and the rule of law,” he said.
Mbam warned that failure to address the issues could compel the organisation to make further disclosures concerning the Vanco Flyover and other matters it considers to be in the public interest.
By Our Correspondent
As Nigeria celebrates its 66th Independence Anniversary, the candidate for the House of Representatives seat representing the Ezza South/Ikwo Federal Constituency, Hon. Chief Kevin Tobias Chukwu, has called on Nigerians to remain hopeful and committed to building a better country.
Chukwu, also known as Ochiri Ozua 1 of Amagu Ikwo, made the call in an Independence Day message to Nigerians, particularly the people of Ezza South/Ikwo Federal Constituency and Ebonyi State.
He described the anniversary as not only a moment for celebration but also an opportunity to reflect on the state of the nation and the responsibilities of leaders in building a Nigeria that meets the aspirations of its citizens.
According to him, Nigeria’s journey since independence has been marked by significant challenges, with millions of citizens currently facing economic hardship, while young people continue to search for opportunities and many communities contend with insecurity and uncertainty.
Despite these challenges, the Ebonyi politician said the resilience of Nigerians remained a source of hope for the country’s future.
“I believe in the resilience of our people. I believe in the ingenuity of our youths, the strength of our women, the wisdom of our elders and the determination of ordinary Nigerians who wake up every morning and refuse to give up on this country,” he said.
Chukwu, however, stressed that hope must be matched by responsible leadership, arguing that public office should be viewed as a responsibility rather than a privilege.
He called for leadership that prioritises the protection of lives, creation of economic opportunities, provision of infrastructure, strengthening of institutions and responsible management of national resources.
The candidate also emphasised the need to create an environment where young Nigerians can pursue successful lives within the country and where hard work, merit and enterprise are rewarded.
He said Nigeria had “come too far to surrender to hopelessness,” urging citizens and leaders alike to remain committed to the country’s progress.
“A better Nigeria is still possible, but it will require responsible leadership, accountable institutions and citizens who refuse to give up on their country,” he said.
Chukwu concluded by expressing optimism about Nigeria’s future, declaring: “Nigeria will rise. Nigeria must rise. And together, we must build the Nigeria we deserve.”
He also paid tribute to the nation’s past heroes, praying that their sacrifices would continue to inspire the country.
“May the labour of our heroes past never be in vain,” he said, as he wished Nigerians a happy 66th Independence Anniversary.
By Okey Maduforo, Awka
As Nigeria celebrates its 66th anniversary of independence from colonial rule, democracy in the country has continued to evolve and deepen, the Anambra State Chairman of the All Progressives Congress (APC), Senator Emma Anosike, has said.
Anosike made the observation in a message to mark Nigeria’s Independence anniversary, noting that despite the challenges the country had encountered since 1960, its democratic system had continued to improve under successive administrations.
According to him, since the return to democratic rule in 1999, Nigeria has witnessed relatively smooth transitions from one administration to another, while citizens have continued to exercise their fundamental rights to hold governments accountable for their performance.
“Before the return of the democratic process, it was indeed difficult and near taboo to challenge the leadership of the country, and those who may have attempted it in the past faced grave consequences.
“Similarly, we have had smooth transitions from one dispensation to another, producing five presidents through the ballot and not through the barrel of the gun. These elected presidents were produced by different political parties.”
Anosike said the administration of President Bola Ahmed Tinubu had sustained the country’s democratic principles and created an avenue for Nigerians, irrespective of tribe, race or religion, to express their views on government policies and programmes.
“Under the stewardship of President Bola Ahmed Tinubu, Nigerians have been enjoying the freedom to express themselves over issues, policies and programmes of government, and those expressions have been shaping and guiding the administration of Mr President,” he said.
The APC chairman said Nigeria’s 66th independence anniversary provided an opportunity for citizens to reflect on the country’s journey as a nation and the progress made since independence.
He said President Tinubu’s Independence Day broadcast had offered another opportunity for Nigerians to renew their hope for a greater and more prosperous country.
Anosike also commended what he described as the “enormous infrastructural development” taking place across the country under the Tinubu administration.
He urged Nigerians to continue to support and have faith in the administration as the country approaches the 2027 general elections.
An Elder Statesman, Chief Hycienth Ngwu, has called on political leaders and policies formulators to ensure governmental policies and programmes directly touch lives of the people and reduce hardship in the country.
Ngwu, who is a prominent community leader in Enugu, urged Nigerians to maintain peace within neighbourhoods and communities, as no meaningful development can take place without peace.
The statesman made the call on Thursday in Enugu while reacting to the developmental efforts of Nigeria at its 66th Independence.
He said that previous and present administrations had put in place policies and programmes to reset the socioeconomic fabric of the nation.
Ngwu said that while the removal of fuel subsidy, and unification of the foreign exchange had good intentions, their impact is yet to reflect on the lives and livelihoods of vast majority of Nigerians.
He urged leaders to ensure that public resources were properly managed while citizens remained patient with reforms aimed at improving the socioeconomic status of the country.
The elder statesman noted that at 66th independence, the country was still struggling on keeping its peace and co-existence as a country; adding that the founding leaders of Nigeria envisaged a closely united, bonded and peaceful country.
He called for return to policies that promote local production, indigenous industries and entrepreneurship, arguing that excessive dependence on imports had continued to weaken the country’s productive capacity.
According to him, we are yet to achieve economic independence even as we needed to do more on non oil revenue earns as the greater part of the world is moving towards greener and clean energy.
“Greater emphasis should be on skills acquisition, creativity and entrepreneurship education system, as academic qualifications without practical skills could leave graduates dependent on scarce white collar jobs.
“We ought to be economically productive nation capable of producing and exporting goods while developing its human capital,” he said.
Ngwu noted that current insecurity and social instability could be partly attributed to poverty and ignorance, while calling for greater honesty and trust between leaders and citizens.
“Corruption, tribalism and selfishness must be addressed if Nigeria is to achieve peace and lasting progress,” he added.
He also called for the scrapping of state electoral commissions as they have not helped in deepening democracy at that level. The National Election body should take over that responsibility.
As Nigeria marks its 66th Independence Day, Macmaduson Concepts Limited, a leading provider of HVACR,industrial parts, sensors, electrical and plumbing materials, has extended warm Independence Day greetings to its customers, clients and business partners across the country.
In a goodwill message to mark the occasion, the company expressed appreciation to its valued customers for their continuous support, trust and partnership over the years.
Macmaduson Concepts Limited, which specialises in HVACR,Industrial Materials, sensors, air-conditioners, refrigerators, cold rooms, chillers, refrigerants, electrical materials and plumbing materials, said the occasion provides an opportunity to celebrate Nigeria and reflect on the nation’s journey.
The company wished Nigeria continued growth, unity, peace and prosperity, while expressing hope for a brighter future for all Nigerians.
The message from the company reads in part:
At Macmaduson Concepts Limited, we celebrate our great nation, Nigeria, and appreciate our valued clients for their continuous support, trust and partnership. May Nigeria continue to grow in unity, peace and prosperity.”
The company concluded its Independence Day message with the theme: “One Nation, One People, A Brighter Tomorrow.”
Happy Independence Day, Nigeria!
Happy 66th Independence Anniversary from Macmaduson Concepts Limited.
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