NAN-HE-10
Loan
By Yetunde Fatungase
Abeokuta, Aug. 7, 2017 (NAN) Mr Gboyega Isiaka, a former governorship candidate of the Peoples Democratic Party (PDP) in Ogun, has advised the state government not to take what he called `jumbo loan’ from the World Bank.
Isiaka gave the advice in a statement in Abeokuta on Monday.
The News Agency of Nigeria (NAN) reports that the state government is seeking the approval of the state House of Assembly to take the 350 million dollars loan from the bank.
Isiaka said that taking such loans at this time would be an additional financial burden to the state.
He wondered why the state wanted a `jumbo loan’ when it enjoyed several financial assistance from the Federal Government and is also realising substantial amounts from Internally Generated Revenue (IGR).
Isiaka added that the purpose for which the loan was meant was `unclear’ to the people of the state.
“Not only has the state taken two tranches of Federal Government bailouts, it also received two instalments from the Paris Club refund to the tune of tens of billions.
“Notably too, the state has always boasted of IGR in excess of N7 billion monthly; So, one wonders the need, yet again, for a new loan of this magnitude.’’
According to him, the current level of indebtedness of the state is put at N300 billion.
He wondered whether it could still accommodate additional loan burden, if the provisions of the Debt Management Act and the Fiscal Responsibility Act were taken into cognisance.
“The truth of the matter is that the quality of social services, human capital development and relevant public utilities are abysmally low in Ogun State even with the high level of loans already sourced and high IGR receipt in the state.
“The lifetime of this administration is less than 19 months and it should rather busy itself with how to offset those loans rather than take new ones.’’
Isiaka urged the House of Assembly to wake up to its responsibility by ensuring that loans approved were for the development of the people and that the existing debt burden was not allowed to continually increase.
The financial expert, however, advised the state government to take a cue from the Federal Government and a few states such as Jigawa, that publish their audited accounts and debt position periodically for citizens and other stakeholders to be informed.
“Financial openness and full disclosure by leaders should be treated as prerequisite of any progressive government.
“At this juncture, the government should furnish citizens with its audited accounts for the last six years including the debt portfolio.
“A situation whereby the State Debt Profile is left to conjectures and rumours shows lack of transparency and indicates bad governance.
“The time has come for the state House of Assembly to pass a resolution to ban the executive from further running after local and foreign financial institutions for loans that are spent on projects that are not people-oriented,’’ Isiaka said. (NAN)
YAF/FF/NKO
==========
Edited by Fela Fashoro/Nkechi Okoronkwo