The debt profile of Akwa Ibom State has soared to N347.75 billion in 2023, Tax Justice and Governance Platform Forum in Akwa Ibom raised the alarm.
Addressing a press conference in Uyo on Saturday, the chairman of the forum, Dr. Harry Udoh, noted that data from the Debt Management Office reveals an alarming increase from N215.99 billion in 2019 to N347.75 billion in 2023, showing a 61.1 per cent rise in just four years.
Udoh explained that the debt burden may spur aggressive tax policies which might disproportionately affect low income residents, exacerbate socio-economic disparities as well as diminish funding for public service delivery in notable areas of education, health and others.
According to the statement, “In recent times, Akwa Ibom State has witnessed a concerning surge in it debt profile. Data from DMO reveals an alarming increase from N215.99bn in 2019 to N347.75bn in 2023, highlighting a 61.1% rise in just four years. This escalation prompts viral discussions regarding financial sustainability and responsible governance.
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“The burgeoning debt of Akwa Ibom State poses grave implications for tax justice, heightened debt burden may spur regressive tax policies, disproportionately affecting low-income residents and exacerbating socio-economic disparities. Moreover, opacity in financial management jeopardizes public trust in Governance stewardship.
“The escalating debt has adverse ramifications for public service delivery, notably in education, health care, water sanitation, As debt servicing claims a larger share of the resources, funding for essential services diminishes, threatening the well being of vulnerable groups and hindering societal development.
“Furthermore, mounting debt hampers entrepreneurship and economic advancement. Prioritizing debt servicing over crucial investments stifles innovation and job creation, fostering economic stagnation and perpetuating circles of poverty.”
To address the challenge, Udoh recommended to the government to broaden the tax base by encouraging voluntary compliance and reducing exemption, improve the efficiency of tax administration processes as well as engage in targeted spending such as prioritizing investment in education, health and entrepreneurship to help create sustainable long-term growth and foster inclusive development.
He said the recommendations align with the goals set forth in the Akwa Ibom State 2024 budget, which aims to achieve a GDP growth rate of 3.76 per cent and inflation of 21 per cent while focusing on partnerships with foreign investors, robust human development, and increased internal generation revenue.
