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.