South-South states owe N988.06b domestic, $873.3m foreign debts – FRC boss Muruako

From ANIEKAN ANIEKAN, Calabar 

The Chairman of the Fiscal Responsibility Commission Victor Muruako says as at December 31, 2021, the six states of the South-South geopolitical zone owe N988.06 billion domestic debt and $873.3 million foreign debt.

The FRC Chairman disclosed this in Calabar during an awareness and sensitization programme/workshop on transparency and accountability.

The three day workshop had as its theme:Sustaining the Gains of Fiscal Transparency and Accountability in States.

The FRC boss who was represented by Zelani Mohammed added that the region is punching below its capabilities in key areas  and highlighted areas that need improvement and also offered to help any state that needs help.

“An analysis of fiscal fundamentals of states of the South South geopolitical zone, as of December 31, 2021 reveals a total domestic debt of N988.06 billion and total foreign debt of $873.3 million. 

“A deeper look into the fiscals indicates an IGR per capita of N8,907; total debt per capita of N44,333; and capital expenditure per capita N26,499. 

“While the statistics can have different interpretations, it is clear that with a population of over 33 million people, which is larger than that of our closest anglophone neighbour, Ghana (31.73 million), it goes without saying that the region is punching below its strategic capabilities in key areas. 

“We can do more by way of IGR, for instance. We can do more by way of capital expenditure. We can improve fiscal sustainability. 

“The Commission is glad to work with any State that wants help. As a matter of fact, the Act setting up the Commission mandates us to offer such technical assistance”, he said.

He advised state governments to sustain platforms for advice and questions on public finance management  from their citizens because in the abundance of advice, there is safety. 

He encouraged citizens  to take advantage of Section 51 of the Fiscal Responsibility Act to ask relevant questions.

He also cautioned banks and financial institutions to digest and use the provision of Section 45 of the Fiscal Responsibility Act in their consideration of lending to governments in the Federation and their agencies.

In his goodwill message, Tanko Ashang, SAN, the state attorney general welcomed the workshop saying  fiscal responsibility is very core in a democracy.

Also speaking, Danladi Daniel, the Head of Extractive Industry  Fraud Section in the EFCC said his commission will work with the FRC on the area of common interest to ensure the resources of the country is properly utilized for the good of the citizenry.

On her part, Charity Ndon, the Chairman of the Akwa Ibom State House of Assembly Committee on Accountability said the workshop is very critical at this transition time.

She added that it is very critical for stakeholders to know how to go about Accountability.

The workshop is consistent with  the commission’s vision of a transparent and accountable government financial management framework in Nigeria.

It aims to sustain the improvement in good fiscal practices by subnational governments  and to also seek ways to build on the enhanced fiscal coordination between the federal government and subnational governments