There
have been a great deal of controversy and secrecy around the quantum and
composition of debts owed by Akwa
Ibom State
government to the banks and contractors, especially the portion incurred by the
Akpabio administration. The problem is exacerbated by the apparent cold war between the
incumbent governor Udom Emmanuel and his predecessor, Senator Godswill Akpabio,
over governance and political issues in the state.
Governor Emmanuel has persistently blamed his
lacklustre performance in the last three years on the huge debt burden he
inherited from his predecessor. He’s trenchantly criticized Akpabio for investing the state’s resources on
worthless projects like the Tropicana Entertainment Complex which had remained
uncompleted after over N150 billion had been sunk into it.
*Akpabio and Emmanuel |
Late last year, the governor complained
publicly that his administration was compelled to pay Julius Berger N6 billion
in a lump sum, in addition to an undertaking to make a monthly payment of a
billion naira to the construction company to offset government’s obligation.
He stated that these debts are unpaid bills
left behind by Akpabio. The details of this debt are still foggy.
Akwa Ibom people have never been told how much
is due to Julius Berger and indeed other construction companies and for what
projects were these bills incurred and the repayment terms Udom Emmanuel has
entered into with the company.
But last week, Jackson Udom, spokesperson to
Akpabio (the former governor of the state) issued a statement stating that the
Akpabio administration left behind only N60 billion in debts owed to the banks.
The statement listed several landmark projects
which Akpabio also built, some of which it called ‘revenue enablers’, but which
the Udom administration has curiously left unused.
Akpabio’s statement was however silent on the
details of debt profile due to contractors and other obligors.
The statement was a rebuttal to an article
written by Barr. Edet Eyo Bassey in which he claimed that Akpabio’s total debt
stock was N500 billion. This controversy arises largely in part because Emmanuel has never briefed Akwa
Ibom people in details on the debt profile of the state government.
Rather, he has consistently used these debts
as the excuse for unimpressive records in the last three years, despite the
fact that in 2016, the state government had restructured its total bank debts
into a Federal Government’s long-term bond which resulted in a monthly
repayment of N300 million, instead of a more suffocating N3 billion monthly
repayment prior to the restructure.
The restructuring was part of the Buhari
administration’s bailout package to the states.
The Emmanuel administration earns between N15
billion and N17 billion from FAAC every month.
With a monthly IGR of N4 billion and refunds
from the Federal government, it has chalked up to N750 billion in the last
three years.
Apart from Lagos , Akwa Ibom is the largest revenue
earner in the country.
This volume of income stream is at par with
what the Akpabio administration earned, and far higher than the volume recorded
by the Victor Attah administration. Yet the governor has not, by any standard,
measured up to the remarkable strides recorded by last his two predecessors.
This explains why our people are so frustrated
and despondent at the pervasive poverty and decay in the state in the midst of
so much wealth. Are youths have been driven into cultism and crime as
unemployment climbs.
In a recent morning discussion programme on
NTA, Dr. Obadiah Mailafia, a renowned economist and former CBN deputy governor,
mentioned Akwa Ibom State
as a typical example of a society with a paradox of riches.
Akwa Ibom has the second highest unemployment
rate of 36.5 per cent in the country, according to the National Bureau of
Statistics (NBS) and records one of the highest death rates in the federation.
The government has been so clumsy and
uncreative in its attempts to curb unemployment.
Instead of investing in agriculture and
agro-allied industries which are labour intensive, our governor prefers to chase
cottage enterprises that have no backward and forward linkages, and so adds no
value to the economy.
A small pencil making operation that imports
its components from China
to assemble in a disused warehouse cannot create jobs. It’s a no brainer! Akwa
Ibom State
does not have an agricultural programme that is designed to produce food and
raw materials.
The government has arrogantly, perhaps for
political reasons, refused to participate in the Central Bank’s Anchor
Borrowers Programme which has boosted rice and wheat production and created
millions of jobs in some states in the last two years.
With so much income, it is a shame that public
schools in Akwa Ibom State
are largely dilapidated and in a state of decay.
Children sit on the floor to receive lessons,
yet the governor talks glibly of providing free education and paying N600
million a year as WAEC fees.
Ramshackle school facilities, poorly-trained
teachers and lack of school resources contribute largely to the poor
performance of Akwa Ibom kids in WAEC examinations despite the much vaunted
free education.
Emmanuel manages Akwa Ibom finances with
utmost opacity and recklessness.
He has been severely excoriated for proposing
to build another Governor’s Lodge in Lagos
with N21 billion, a worship centre in Uyo for N10 billion and a 21-storey high
rise with undisclosed amount.
In all, the governor will just blow away over
N100 billion on fancy buildings that cannot create jobs, but would end up
adding to the long list of white elephant projects dotting our landscape!
The pact between the government and Julius
Berger (and indeed other contractors) on its debt profile and repayment terms
undermines the very fundamental principles of good governance.
* Etim
is a banker and journalist.
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