(IT IS GETTING HOT) RE: ABIA’S DEBT PROFILE: THE TRUE POSITION – OBINNA REPLIES OBINNA

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Without prevarication, digression and name-calling, I will nippily respond to the waggish riposte with cornucopia of canards by the Abia State Commissioner for Finance, Mr Obinna Oriaku with documented evidences obtained from the Debt Management Office (DMO) Nigeria Bureau of Statistics (NBS) Ministry of Finance, the Central Bank of Nigeria (CBN) and the Abia State Accountant-General’s office.
1. ABIA STATE EXTERNAL DEBT STOCK
Documents from the DMO revealed thus as Abia State External Debt Stock
A. June 30, 2014 = $35,500,952.41 million
B. December 31, 2014 = $33,791,420.92 million.
C. December 31, 2015 = $41,502,309.09 million.
D. June 30, 2016 = $42,400,362.80 million
E. December 31, 2016 = $41,290,438.92 million
F. June 30, 2017 = $100,951,841.29 million
G. December 31, 2017 = $101,486,013.74 million
H. June 30, 2018 = $100,217,589.59 million
From the bullet points adumbrated above, Okezie Ikpeazu’s government inherited external debt of $33,791,420.92 million, equivalent of (N12,164,911,531.2 billion) and by June 30, 2018 (37 months after) his government had tripled it to $100,217,589.59 million, equivalent of (N36,078,332,252.4 billion).
In other words, Okezie Ikpeazu’s government in the last 37 months accumulated external debt stock of $66,426,168.67 million, equivalent of N23,913,420,721.2 billion. Note that from December 31, 2017 to June 30, 2018 (six months) Ikpeazu’s government was able to repay only the sum of $1,268,424.15 million, equivalent of N456,632.694 million.
With this ($1,268,424.15 million) repayment plan, it will take Abia State approximately 27-years to offset the external loan of $66,426,168.67 million accumulated by Ikpeazu’s government. Mr. Oriaku, I am also sure that you will be willing to show Abia State people the corresponding projects Ikpeazu’s government executed with this fund.
Follow Link for Abia state external debt stock – https://www.dmo.gov.ng/debt-profile/sub-national-debts/1065-federal-and-state-governments-external-debt-stock-as-at-30th-june-2014/file
See link for the balance as at December 31, 2014: https://www.dmo.gov.ng/debt-profile/sub-national-debts/1066-federal-and-state-governments-external-debt-stock-as-at-31st-december-2014/file
See link for Abia external debt stock June 30, 2018: https://www.dmo.gov.ng/debt-profile/sub-national-debts/2543-states-and-federal-government-s-external-debt-stock-as-at-30th-june-2018/file
2. ABIA STATE DOMESTIC DEBT STOCK
Documents from the DMO revealed thus as Abia State Domestic Debt Stock
A. Dec. 31, 2014 = N25,126,070,685.10 billion
B. Dec. 31, 2015 = N 33,530,526,404.80 billion
C. Dec. 31, 2016 = N 53,525,312,006.52 billion
D. Dec. 31, 2017 = N 60,648,431,912.05 billion
E. June 30, 2018 = N 57,467,618,625.51 billion
See link for Abia domestic debt stock for Dec 31, 2014: https://www.dmo.gov.ng/debt-profile/sub-national-debts/1059-domestic-debt-of-the-36-states-and-fct-as-at-december-31-2014/file
See link for Abia domestic debt stock for Dec 31, 2017: https://www.dmo.gov.ng/debt-profile/sub-national-debts/2476-states-and-the-fct-domestic-debt-stock-as-at-december-31-2017/file
See link for Abia domestic debt stock for June 30, 2018: https://www.dmo.gov.ng/debt-profile/sub-national-debts/2557-states-and-fct-domestic-debt-stock-as-at-june-30-2018/file
From the figures highlighted above, Ikpeazu’s government doubled the domestic debt of N25,126,070,685.10 billion it inherited from Theodore Orji’s government to N57,467,618,625.51 billion in just 37 months in office.
In other words, Ikpeazu’s government borrowed the sum of N32,341,547,940.41 billion internally in just 37 months.

ANALYSIS
If changed to Naira, Abia State external debt stock of $100,217,589.59 million amounts to N36,078,332,252.4 billion. When you add this to its domestic debt stock of N57,467,618,625.51 billion it will amount to the sum of N93.545,940,877.91 billion.
Now the Ministry of Finance document on monthly FAAC Allocation to states for the month of July 2018 indicates that the sum of N40,648,992.87 million was deducted by the CBN from the source as repayment for Abia State external debts.
In other words, a deduction of N40,648,992.87 million was made from the source. If we used this figure as yardstick for monthly repayment plan for example, it will take Abia State 0ne year to repay the sum of N487,787,914.44 million, 10-years to repay the sum of N4,877,879,144.4 billion and approximately 200-years to repay the sum of N93.545,940,877.91 billion which the state government owed as at June 2018.

ABIA STATE FAAC ALLOCATION SO FAR
The Federal Ministry of Finance Federation Account Allocation Committee (FAAC) documents revealed that FG remitted the net sum of N209.336 billion to Abia State JAAC account in 37 months.
According to the ministry of finance, FAAC record, the state executive received the sum of N128.149 billion while the 17 LGAs got the sum of N81.187 billion from May 2015 to July 2018. The breakdown is:
2015, May – December 2016, Jan – Dec
State: N25.585 billion State: N30.552 billion
17 LGs: N15.968 billion 17 LGs: N20.053 billion
Total = N41.553 billion Total = N50.605 billion
2017, Jan – December 2018, Jan – July
State: N40.693 billion State: N31.319 billion
17 LGs: N26.122 billion 17 LGs: N19.044 billion
Total = N66.815 billion Total = N50.363 billion

BAILOUTS/PARIS CLUB REFUND ETC
Ikpeazu’s government received the sum of N22 billion from Paris Club Refunds alone (N10.6 billion, N5.7 billion and N5.7 billion being first, second and third tranche of Paris Club refunds).
It also received N14.2 billion in bailouts, which the state government quickly took advantage of to renegotiate its liabilities, including taking a 20-year loan of N14.15 billion at a nine per cent lending rate from the Central Bank of Nigeria (CBN) ostensibly for the settlement of outstanding wage bills.
During election tribunal, Appeal and Supreme cases in 2015, Ikpeazu’s government borrowed N43.02 billion from unnamed financial institution. The reason why the lender remained anonymous is because the money was never appropriated.
Furthermore, from June 2015 to Dec 2017) Ikpeazu’s government also claimed it generated the sum of N27.166 billion in IGR; that is N105 million in 2015 (June – Dec) N14.92 billion in 2016 and N12.69 billion in 2017.
When summed up, the total amount Ikpeazu’s government has received is N329.872 billion. Then add it to the N56.254 billion his government borrowed in 37 months, it will give the sum of N386.126 billion.

SUBMISSION
It is an embarrassment to say the least, that Ikpeazu’s government has increased Abia State domestic debt stock to N68,646,841,018.79 billion in September from N57,467,618,625.51 billion it was on June 30, 2018.
In other words, Ikpeazu’s government borrowed additional N11 billion just in three months (June – September). This brings Abia State total debts (External & Domestic) to the sum of N104 billion. Shamefully Ikpeazu’s government borrowed N67.245 billion out of the N104 billion. Where is the prudence Mr Oriaku talked about?
With approximately N500 billion received so far by Ikpeazu’s government, is it not an embarrassment that there are no corresponding projects to justify this mickle sum? Even statutory obligation as infinitesimal as civil servants’ salaries and pensioners’ gratuities could not be met by this insidious government.
I am very ashamed that Mr Obinna Oriaku would dish out Abia’s debt stock leaving out its alarming external debt stock of $100,217,589.59 million (N N36,078,332,252.4 billion) as at June 30, 2018. I concur that Mr Obinna Oriaku is a banker but “a seasoned” one, I have my doubts. A seasoned banker would have since thrown in the towel than subject himself to public odium and opprobrium in his otiose effort to cover-up the imprudence of this obvious insidious government.
If you were sincere Mr Oriaku, why would you leave out Abia State external debt stock from your half-truth response? Are you not aware of it or is it not part of Abia’s alarming debts? Let me remind you Mr Oriaku that in a sane society, Ukpeazu’s government would have been stampeded out of office by now.

WHO WILL WIN ABIA STATE GOVERNORSHIP 2019? VOTE NOW

This was the earlier position of Hon. Obinna Oriaku : http://www.abiafactsnews.com/abias-debt-profile-the-true-position-by-obinna-oriaku/

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1 Comment
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