ABIA IS TOTALLY FINISHED….DON NORMAN
UMUAHIA— GOVERNOR Okezie Ikpeazu of Abia State has recklessly increased the domestic debt of the state to the tune of N60.648 billion and the external debt to $101.486 million (N36.534 billion at the rate of N360 exchange rate). In a recent post by ace journalist Don Norman, obtained by Suncity News, Ikpeazu’s government had recklessly increased the domestic debt to N60.648 billion and the external debt to $101.486 million (N36.534 billion at the rate of N360 exchange rate).
You will recall that it was reported in 2015 that the state government led by Ikpeazu borrowed a total of N24 billion 11 months after he assumed office . This is made up of N14.1 billion bailout fund and N10 billion, which government sources said was for infrastructural development. though the State Government rebuffed the allegation, insisting that the figures given by the the National Bureau of Statistics, NBS were inaccurate and affirmed that its debt profile was not up to N78 billion as reported by the Bureau, which also placed the state as the 5th highest indebted state in the country.
below is the analysis of Abia state debt profile.
1. DEBTS ACCUMULATED
On May 29, 2015 when his administration was enthroned, Abia’s domestic debt was N25.126 billion while its external debt was $33.791 billion. As at December 2017, Ikpeazu’s government had recklessly increased the domestic debt to N60.648 billion and the external debt to $101.486 million (N36.534 billion at the rate of N360 exchange rate).
These represent additions of N35.522 billion (141 %) and $67.695 million (200 %) in Abia’s domestic and external debts in just 31 months. When summed up in naira, Abia State debt stood at N97.182 billion as at December 31, 2017.
2. IMPLICATION OF THIS DEBT
On the CBN present monthly repayment plan of N38.081 million, Abia State will be repaying the sum of N456.972 million per annum and N4.569.72 billion in a decade (10 years). In other words, it will take Abia State 210 years to repay the debt of N97.182 billion accumulated by Ikpeazu led PDP government.
What this sad development simply means is that our generation will service the debts until we die. Our children will continue until they die. Even the children born in 2018 will service the debt until they are no more. What a tragedy!