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2023 budget implementation: New Govs lament over multi-trillion Naira debts of predecessors
By Moses Adeniyi
Lamentations by new Governors over the debt profile bequeathed to them by their predecessors have begun to take reflection from some quarters.
NewsDirect gathered how some State Governors, angered and disturbed by the debt stock inherited from their predecessors, would form a critical subject of contention in the nascent part of their administrations.
The grievance, it was gathered would be more pronounced from Governors who are starting on a fresh note of first term, particularly those coming from a different party from their predecessors.
Recall that NewsDirect had reported how that the subject of huge debt profile amidst shrinking revenue had formed a central subject of discussion during the Induction Programme of the newly elected Governors before they were sworn-in on Monday May 29.
For instance, lamenting the huge debt which has presented a negative Debt-to-Revenue ratio, Gov. Bala Mohammed of Bauchi State had argued that he believed the World Bank should raise a red flag on Nigeria’s rising debt profile.
“Honestly, you heard me ask a question. I wonder what the World Bank is doing.
“Apart from giving us grants, assistance, States Fiscal Transparency, Accountability, and Sustainability (SFTAS) and of course loans, they should be able to raise a red flag.
“They should be able to tell the managers of our economy that we cannot continue to borrow endlessly,” he had said.
Mohammed who expressed concern that the rising public debt profile of Country has affected both the Federal and State Governments, had submitted that the need for the Country to correct the perception about debt was sacrosanct, stressing the need for States to look inward for revenue.
“Our debt servicing requirement is about 95 per cent of the revenue. So the States are affected by this macro economic reality.
“The oil proceeds are not been shared. And we are here celebrating success, what success?
“We are going to go under, unless we do something inward to really correct our own perception, our own notions and our own approaches to the management of the economy of the Country.
“It is a monolithic economy. And yet even where we are getting money, we have taken so much up front. The Federation has to be looked at as a structure because States have to have a say in the management of the economy,” Mohammed sworn-in for a second term in Bauchi had said.
In his response, Mr Caleb Mutfwang, who has been sworn-in as the new Governor of Plateau State, had said Nigeria need not the World Bank to serve it warning before exercising caution, particularly when it is glaring that the public debt profile has become burdensome.
However, Mutfwang, later promised he would not witch-hunt anyone as a Governor, saying where there are questions, it would be resolved “as a family affair.”
Mutfwang who has succeeded Simon Lalong, the immediate last Governor, at a state banquet organised to usher-in his administration had said:,“I want to believe that going from here, we will build a new Plateau that belongs to all of us. All of us who have the opportunity to serve, are standing on the judgement of history and only history will determine the type of marks that will be allocated to you and we pray that history will be kind to us.
“I want to pledge before Plateau State that while we will not fail to look after the common wealth of the State, we will not witch-hunt anyone. Where we find issues to be addressed, we will deal with them as a family affair.”
However, the premise for States having new Governors from different party platforms from their predecessors, seems to be taking different turn.
For instance, for States like Kano and Benue, it is feared probe would surface as heavy debt inherited by the new Governors have begun to raise dust.
In Kano, N241billion debt left behind by immediate past Governor, Abdullahi Ganduje, has generated reactions, as the new Governor of Kano State, Abba Yusuf, has vowed to launch a probe into the N241bilion debt he inherited.
Yusuf is from a different party platform, the New Nigeria People’s Party (NNPP) from Ganduje who is from the All Progressives Congress (APC).
The NNPP Governor has also lamented that the handover notes delivered to him by the immediate past administration were not enough and very scanty.
According to him, Ganduje departed from established democratic practice by leaving the State without personally handing it over to him.
He said, “The handover notes are not enough for us. It is a very scanty note. The transition committee report was also very scanty.
“Nothing we can do as representatives of the State, we can’t refuse to collect what was given to us. We will look at it. Where we are satisfied, we will take action. Where we are also not satisfied, we will also take action accordingly.
“It is so disheartening that the government left a debt profile of over N241 billion for us. Where are we going to source the money? The IGR (Internally Generated Revenue) they talk about is nothing to write home about. The money they realised through Kano Internal Revenue Service was nothing to write home about. Why the use of so many consultants? Just like rain conduit for the resources of the people of Kano State. We are going to look at it. I am not satisfied!
“I pray Almighty Allah to reward him (Ganduje) according to what he did for the State. We are not here to steal money, we are not here to grab their lands. We are here to work and by the grace of Allah, we will achieve all we set out to achieve within the next four years.”
Yusuf, who was declared winner of the March 18 governorship election in the State was sworn in as the 19th Governor of Kano State on Monday at the Sani Abacha stadium, Kano.
Ganduje was represented by Usman Alhaji, who gave a summary of the activities of his administration for eight years (2015 – 2023).
He explained that the expenditure of the State Government from June 2015 to May 2023 indicates a total recurrent commitment of N660.3 billion and the total capital and expenditure of N540.6 billion and the total cumulative expenditure stands at N1.2 trillion.
“There are other MDAs that have significant bank balances. These include Kano Energy and HydroPower Energy, which has N740 million, Kano Energy and Hydro Hydro Power Energy also has N703 million while N4 billion is expected next Tuesday,” Ganduje added.
“The current State debt profile is expressed here under, the Kano State Banking Funds Trustees which has accumulated an amount of N75.6billion for Kano State, it is N9.2 billion, for Local Government is N66.3 billion, that’s what gave a total of N75.6 billion.
“There are also tax deductions, the pensions contract liability which stands at N4.5 billion. Then the total debt stock, internal and external, stands at N123.3 billion. So, the total liability as of 31st December 2023 stands at N241.5 billion,” he had said.
In Benue State, the immediate past Governor, Samuel Ortom, on Sunday handed over to the new Governor, Rev Fr Hyacinth Alia a N187 billion debt burden.
In his speech, Ortom had said that his administration was handing over the N187 billion debt made up of salary arrears, loans, contractual obligations, and others.
Ortom who gave a summary of contents in his handover note said that a total sum of N734.9 billion was accrued to the State throughout his eight years.
He added that the expenditure and others gulped N735.6 billion admitting that the debt situation of the State was on the high side.
“This handover note contained not only structure but activities of my eight years of administration. It has sectoral briefs of the Agencies, Ministries, and Departments.
“It contains three volumes; volume one is the handover of all MDAs, volume two comprises of policy document of my administration, (the Benue development plan) the part b is the comprehensive briefs submitted by Ministries and agencies and part three contained highlights of debt profile and pension.
“The revenue and income from all sources; federation account, Value Added Tax, grants, loans, and others stand at N734.9 billion as of the end of April while the expenditure stand at N735.6billion as of the end of April.
“The Indebtedness of the state which comprises salary arrears, pension, contractual obligations, and others is N187billion.
“The debt situation of the State might appear on the high side but the government had taken significant steps to reduce this through debt swap with the Federal Government,” he had said.
Ortom informed the incoming Governor to make use of the opportunities of funds that will soon be available for him such as the backlog of stamp duty and N61 billion loan facilities from the Central Bank of Nigeria (CBN) for smooth take-off.
Some of the immediate past State Governors had taken to the tail end of their administration made thought evoking financial decisions, particularly on budget and borrowing.
For instance, in less than seven days to the end of his administration, Sen. (Dr) Ifeanyi Okowa, the immediate past Governor of Delta State, had on Monday, May 22 in Asaba, signed a Supplementary Appropriation Bill of N71 billion approved by the Houseof Assembly.
The budget comprises N65.5 billion for capital expenditure and N5.6 billion as recurrent expenditure.
Okowa, had earlier in the month presented the 2023 supplementary budget of N71 billion to the State House of Assembly for approval.
In his letter addressed to the Assembly read by the Deputy Speaker, Christopher Ochor, before the plenary in Asaba, Okowa had said, “May I wish to note that there has been actual and projected increase in some fiscal receipts.
“Consequently, the supplementary budget has become necessary for appropriation to pay for some critical projects and activities of government as well as fund ongoing projects across the state in the year 2023.
“In the light of the foregoing, it would be greatly appreciated if the draft 2023 Supplementary Appropriation Bill is placed before the House at its earliest convenience for consideration and passing into law.”
Okowa had earlier in January, barely four months to the end of his administration gotten approval of the Delta State House of Assembly for two separate loan requests of N100 billion and N20 billion respectively, a development that generated knocks and reactions.
In his letter of request to the House, Okowa had said the N100billion would be drawn from an earlier approved N150 billion Consolidated Syndicated Loan.
Okowa had recalled that on the April 26, 2022, the House approved for the State Government to obtain N150 billion with Zenith Bank as the Lead Arranger.
He had explained that with the change of the Lead Arranger from Zenith Bank to Premium Trust Bank, alongside other participating banks willing to accede to the pricing terms, Premium Trust Bank has insisted for House of Assembly resolution to enable it consummate the transaction in line with prudential guidelines and extant regulations.
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Daura meeting: Mixed reactions trail Atiku, El-Rufai, Ali Modu Sheriff’s visit to Buhari’s residence
…Visit, an attempt to build northern alliance, unseat Tinubu in 2027 — Shehu Sani
…Nigerians must shine their eyes, reject regrouping of criminals, those who caused us pain — Ex-CAN boss, Hayab
…Meeting unfortunate if it has any connection with 2027 — Activist Abdul Bako
By Austine Emmanuel, Kaduna
Mixed reactions have continued to trail the visit of Northern politicians to Former President, Muhammadu Buhari at his Daura residence in Katsina state.
President Buhari received the presidential candidate of Peoples Democratic Party, (PDP) Alh. Atiku Abubakar, accompanied by the former Governor of Sokoto state, Alh. Aminu Tambuwal, former National Secretary of the PDP, Ibrahim Tsauri, party stakeholders and his supporters on Saturday.
Also, the immediate past Governor of Kaduna State, Mal. Nasir El-Rufai and former Borno State Governor, Senator Ali Modu Sheriff visited Buhari on Sunday and Monday respectively in Daura.
The visit according to the politicians was a Sallah homage and to congratulate the statesman for successful celebration of the 2024 Eid-el-Kabir festivity, a meeting that observers said has connection with synergy for the 2027 general elections.
Reacting to the development amongst many Nigerians, the Senator who represented Kaduna Central in the 8th Assembly, Senator Shehu Sani alleged that Northern politicians are trying to build a strong alliance using Buhari as a rallying point to challenge and evict President Bola Ahmed Tinubu in 2027.
Sani said that the recent visit only appears to be the usual Eid homage, meanwhile it is a platform to resurrect Buhari’s political charm, fanaticism, stock up and light up the Arewa sentiment and thereafter mobilise the gullible to another hollow without considering the inferno it would eventually generate.
The Lawmaker who condemned Northern politicians on what he tagged ‘obsession to power’ accused the Buhari’s administration of gross incompetence, stressing that the former president, though a Northerner left the region worse than he met it, adding that poverty and insecurity was at its peak than anytime in Nigeria’s history while he was in power.
“The recent visits by some prominent Northern politicians to Daura appears to be the Usual Eid homage. But looking deeper and beyond the facade, it’s surreptitiously a new attempt to build a strong northern alliance using ex President Buhari as a rallying point to challenge and evict President Tinubu’s Government in 2027. It is a regrouping of Northern political forces for the next general election. A project that will eventually kiss the dust.
“They want to resurrect Buhari’s political charm, fanaticism and mobilise the gullible to another hollow and bewildering end. They want to stock up and light up the Arewa sentiment without considering the inferno it would eventually generate. Thesame Buhari that led Nigeria for eight years and left the North worse than he met it.
“It’s too early to forget. By the time he left power, poverty and insecurity was at its peak than at anytime in Nigeria’s history. They had power and wasted it; what do they want to do with it again?
“A Southerner is in power just for one year. It’s too early for the desperate and power hungry northern elite to start plotting. The south never did that to Buhari. Their intended action has the capacity of ruining the democratic process and wrecking the fragile unity of the country when the south is awakened to this reality.
“Their obsession with power is condemnable.Opposition to Tinubu from the point of policies, promises and programs of his administration is a democratic right of any Nigerian. People have the right to speak and criticise the Government.
“But attempts to whip up Northern sentiments to achieve their political ends is a dangerous political experiment and expedition at this material time. No serious southerner challenged Buhari for eight years; these power drunk Northern politicians are dragging the region to a new political journey through a land mine.
“Buhari’s reign ensured nepotistical placement, installation and dominance of Northerners at strategic positions of authority and power for eight years. Results had shown that they only enriched themselves, pillaged the economy of the country and pauperized our country.
“The Daura homage of the disgruntled and the obsessed will fail. Our people in the North should reject these faces and their plots.They have nothing to offer. From the abandoned Baro Port, Ajaokuta, Lake Chad basin refiling and Mambilla hydro power, they failed. They came to power when the North was in the hands of terrorists and left it in the joint hands of terrorists and Bandits. The Northern Talakawa should reject their antics,” Shehu Sani said.
Speaking with our Kaduna Correspondent on Monday in Kaduna, the immediate past chairman of the Christian Association of Nigeria, (CAN) Kaduna state Chapter, Rev. Dr. John Joseph Hayab opined that there is nothing wrong with paying Sallah homage, meanwhile he stated that everything is wrong if it has a political undertone.
Hayab who also doubles as the Country Director for Global Peace Foundation Nigeria, (GPFN) likened politicians as friends in the time of interest who only try to confuse Nigerians as though they are enemies when they do not have anything in common to share.
The cleric who urged Nigerians to shine their eyes against regrouping criminals and those who had caused the nation pains, explained that Nigeria belongs to everybody and not a few who always want to hold her to ransom.
He said, “People who have caused us pain always gang up when it comes to politics. The same gang of criminals who have no interest in the Nation at heart. They only disagree when they are looking for what they want to get for themselves.
“As a nation, we must try to shine our eyes and differentiate between those who love us and those who do not love us. They do not even love Buhari but they want to ride on his name for their selfish interest.
“It is not wrong to pay Sallah visit but wrong when there is a political undertone. Nigerians have suffered in the hands of few people who gang up when they want something to share. We must not give them the opportunity again,” Hayab added.
Meanwhile, the National President, Campaign for Democracy, a Rights Activist and Social Crusader, Comrade Abdul Bako Usman stated that if the meeting is for the actualisation of 2027 then the gesture is rather unfortunate.
Speaking with our Kaduna Correspondent via phone conversation, Abdul reiterated that North has been in jeopardy for years without the politicians meeting with the likes of Former Heads of state: Abdulsalami Abubakar, Ibrahim Babangida among other Northern elites for synergy to proffer lasting solution to the issues of insecurity and multidimensional poverty bedevilling the region for decades.
Bako said, “It is very important for leaders to meet and strategise on ways to move their region forward, but if it at all the meeting has anything to do with 2027 then it is very unfortunate.
“Because it will be good if that alliance has to do with tackling insecurity, multidimensional poverty in the north. But if they are coming together in working with synergy to the actualisation of 2027 or for political reasons then it’s quite unfortunate because the north has been in jeopardy for long but none of them have gone to meet former presidents like, Ibrahim Babangida and Abdulsalami Abubakar.
“So, going to see Buhari if it’s for political reasons then it’s rather unfortunate.”
It is important to note that northern elites over time accused President Bola Ahmed Tinubu of marginalisation, saying that they will prioritise someone who is seen as more inclusive, less controversial, and more aligned with the interests of all regions of the country.
One of those critics are the Northern Elders Forum, (NEF) who said that they regretted voting for president Tinubu’s emergence in the 2023 general elections and will not support his reelection in 2027.
Governor Dapo Abiodun of Ogun State has been unanimously elected as the new Chairman of the Southern Governors’ Forum, following a meeting of the 16 governors in Abeokuta, Ogun State.
The position became vacant after the passing of former Ondo State Governor, Rotimi Akeredolu, in 2023.
Lagos State Governor, Babajide Sanwo-Olu, announced the decision, citing the forum’s confidence in Abiodun’s leadership abilities. Abiodun expressed gratitude for the opportunity, promising to lead with inclusiveness and efficiency.
He also pledged to work closely with his Vice, Anambra State Governor, Professor Charles Soludo, to address regional interests and drive development in the southern region.
The emergence of Abiodun as Chairman marks a new chapter for the Southern Governors’ Forum, as the region seeks to tackle pressing issues and promote collective growth.
According to him, “This is indeed a significant honour bestowed on me by my esteemed colleagues, and I deeply appreciate their confidence in my leadership. Together, we will strive to ensure quality governance across our states and collectively engender exceptional regional development throughout Southern Nigeria.
“I also extend my congratulations to my colleague, Governor Charles Soludo of Anambra State, who has been elected as the Vice Chairman.”
Among those present were Dapo Abiodun of Ogun State, Godwin Obaseki of Edo State, Seyi Makinde of Oyo State, Alex Otti of Abia State, Babajide Sanwo-Olu of Lagos State, Ademola Adeleke of Osun State, Francis Nwifuru of Ebonyi State, Peter Mbah of Enugu State, Douye Diri of Bayelsa State, and Umo Eno of Akwa Ibom State.
Also in attendance were Biodun Oyebanji of Ekiti State, Bassey Otu of Cross River State, Charles Soludo of Anambra State, the deputy governor of Imo State, Chinyere Ekomaru of Delta State, Monday Onyeme, and the deputy governor of Ondo State, Olayide Adelami.
The meeting was convened to discuss crucial matters affecting their respective states and the nation at large.
By Omobolaji Adekunle, Abeokuta
The Ogun State Government has confirmed 25 suspected cases of cholera, with one death, across seven local government areas.
Commissioner for Health, Dr. Tomi Coker, stated this at a press conference in Abeokuta the state capital urging the public to report suspected cases to the Ministry.
The affected LGAs are Ado Odo/Ota, Remo North, Odeda, Sagamu, Ijebu North, Ewekoro, and Obafemi Owode. Nine cases have been confirmed, with one death recorded.
The State Community Health unit is on red alert, and the Ministry is coordinating the outbreak response with other stakeholders.
Treatment for Cholera is free in all public health facilities, and rapid response teams are prepared to respond to calls on short notice.
The Commissioner advised the public to be vigilant, especially in border areas with Lagos State, the epicentre of the cholera outbreak.
The Environment Commissioner, Mr. Ola Oresanya, announced that the State government has constructed over 60 public toilets and improved waste management collection.
The Education Commissioner, represented by Mr. Oluwole Majekodunmi, urged school administrators to ensure hygienic food and proper handwashing practices.
Contact lines for suspected cases: 08038642812, 07034214893, and 08084250881.
Court adjourns Emefiele’s trial till October 21
Cholera outbreak: Tinubu constitutes presidential c’ttee to oversee emergency operations
