The five-month-old Governor Umo Eno administration of Akwa Ibom State is said to have obtained N1.2 billion loans described as ‘illegal’ in its existence.
This is as the immediate past administration under ex-Governor Udom Emmanuel purportedly left more than N233 billion debt profile for his successor.
Policy Alert in calling out Governor Eno on Fiscal Red Flags observed that ‘‘the administration has continued in the pattern of the immediate past administration to take a loan of N1.2 billion through the so-called direct credit substitute/discounting facility, which is illegal and dangerous for the fiscal health of the state.’’
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In a statement signed by its Programme Officer, Fiscal Reforms and Anti-Corruption, Faith Paulinus and given to journalists on Wednesday, the organisation noted that ‘‘The administration of Governor Umo Eno has to immediately curb its inherited appetite for loans in anticipation of funds that are due to the state in the future. Future funds must be left for the future.’’
The organization, a Civil Society Organisation that promotes fiscal and ecological justice in the Niger Delta, identified red flags in the public finance management approach of the five-month-old administration of Governor Umo Eno of Akwa Ibom State.
“It is even more disturbing that the authorisation to obtain these loans are never discussed on the floor of the House of Assembly in breach of the Fiscal Responsibility Law of the State.”
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Policy Alert, therefore, called on the Akwa Ibom State House of Assembly to step up to the plate in its oversight function and hold the executive accountable on the management of the state’s finances.
On further spending, Eno administration spent N47.71 billion on recurrent items, more than 30 percent higher than the N36.64 billion spent on capital projects.
Policy Alert lamented that this is contrary to recent public commitments by the governor to cut cost of governance and reduce recurrent expenditure.
“It is also disturbing that within the three months period, the administration spent N47.71bn on recurrent items, more than 30 percent higher than the N36.64bn it spent on capital projects, contrary to recent public commitments by the governor to cut cost of governance and reduce recurrent expenditure.
High cost of governance has continued to be a bane to the development of the state and needs to be urgently addressed,” the organisation stated.
It remarked that “it is worrisome that the State Government has not only neglected key sectors but has continued the trend of obtaining loans illegally.”
The statement made public after Policy Alert’s review of the Akwa Ibom State Third Quarter Budget Performance Report 2023 (July -September), found it disturbing that the Health sector and the Water, Sanitation, and Hygiene (WASH) sector had zero capital releases during the period under review.
‘‘The Office of the Governor, Ministry of Finance, and the Office of the Accountant General which do not have capital development functions directly impacting citizens together accounted for N6.32bn in capital expenditure in the same period.’’
Noting that N751million was disbursed on capital projects in the Educational Sector, the statement called on the state government to come clean on the specific projects that gulped this amount.
Within the period, according to the statement, the only capital project in education known to have been executed by the administration was the renovation of CKS Primary School, Barracks Road, Uyo.
