A call to prevent the governor of Gombe from mortgaging the state with debt
We have followed the wave of borrowing by the government led by Muhammadu Inuwa Yahaya in Gombe State and noticed that it has borrowed well over 44 billion naira in just over two years and yet it is about to get another 35 billion naira loan from the capital market. Already on October 6, 2021, the Executive Council of Gombe State approved the loan and ordered the Commissioner of Finance and Economic Planning “to write to the Honorable Minister of Finance to issue an ISPO of N 665,605,647.90 per month to allow deductions. the FAAC allocation from the State in settlement of principal and interest accrued on the Suku through a sinking fund to be created for the purpose and payment of financial advice. Service charge of 0.005% of the sum of N 175,000,000.00 to Finmal Finance Services Ltd ”(a company reportedly owned by Umaru Kwarianga, chairman of Gombe Investments and Property Development Company and campaign manager for the election of Governor Muhammadu Inuwa Yahaya in 2019).
Of particular concern to us is that these excessive borrowing which comes with an overwhelming socio-economic burden and impact on the state are not being spurred or pushed by the urgent and realistic needs of the state. . This irresponsible borrowing enthusiasm, if left unchecked or curbed, will eventually cripple the state and subject its people to a long term of heinous and hellish economic slavery. The primary condition for the justification of a state government to borrow is the ability of the proposed project to be self-sufficient, capable of repaying the loan and, above all, is an integral and vital part of the state’s fiscal and development framework. State debts should not be acquired at the whim and pleasure of the rulers of the state, but for the sole purpose of accelerating development at a relatively reasonable cost.
We ask the Governor of the State of Gombe to publish, within seven days of this publication, in at least one national daily and one circulating within the State the details of all debts that it has contracted, the details of which must include the amounts, the object of such debts and their link with the government’s development program, cost-benefit analysis showing the economic and social benefits of these loans, cash flow projection to verify the viability and sustainability of the purpose of the loan, audited financial statements for the last three consecutive years, appropriation laws authorizing the purposes for which the loans were used, the amount that was repaid or the repayment plan, the ratio the profile of the state’s debt in relation to its total revenue, the revenue generated internally of the state, the state’s investments (if applicable), proof of obtaining and maintaining the rating Debt Sustainability Analyzes by the DMO, evidence of an updated submitted quarterly data on domestic debt to the DMO and evidence of compliance with all investment and securities law requirements movables (ISA) 2007.
By this posting we also put all banks that have made loans to Gombe State government or are in the process of processing loans for Gombe State government or are involved in government loans of Gombe Gombe State in any way, on NOTICE that we will put in place legal proceedings to ensure that they face the full wrath of the law for any failure to meet all regulatory requirements regarding such involvement.
We also call on the following institutions and offices to pay attention to the borrowing appetite of the Gombe State government with a view to complying with the DMO’s national guidelines for state governments:
Debt Management Office / Debt Management Office;
the Vice-President of the Federal Republic of Nigeria
the Minister of Finance;
the Attorney General of the Federation;
the Minister responsible for national planning;
the chief economic adviser to the president;
the Governor of the Central Bank of Nigeria; and
the general accountant of the Federation;
In the case of the DMO and the Minister of Finance, we state that it has the continuing duty of the people of Gombe State to ensure that the Gombe State government does not acquire any debt without complying. to the letter and spirit of the Guidelines for such loans. .
We fear that despite the borrowing of colossal sums and of course the State’s revenues from the FAAC and the IGR, the State is getting poorer every day, its infrastructure, its public institutions and its services are deteriorating. an accelerated pace. The growing profiles of the education and health sectors of the state under previous governments are fading, and no aspect of the state can be said to have been positively affected by this borrowing government. Indeed, the state is collapsing and the current borrowing frenzy is indicative of the ignorance of Governor Yahaya and his team. The government has awarded contracts on paper, but we boldly assert that the reality on the ground does not reflect such contracts.
MOHAMMED SALISU ABDULLAHI
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