Without conceding, the Edo State government on Wednesday declared its has the capacity to pay estimated at N500 billion debt obligations.
It however blamed the rising debts due to the fiscal policy of the federal government that drives inflation, devalues the Naira/ US dollar and make lives unbearable for vulnerable Nigerians.
The State Commissioner for Communication and Orientation, Mr Chris Nehikhare said this on Channels Television tagged, ‘morning brief’.
He revealed that some of the financial agreements done by the State were inherited by past administrations, noting that State has been transformed due to the economic policies put in place by Governor Godwin Obaseki.
Mr Nehikhare said, “We have the capacity to handle these debts. If not so, we would not have taken it. You can see where it is going to”.
The Commissioner said, “Before May 2023, the value of N15 billion and now is not the same value. Even the cost of buying cement then and now are not the same. Inflation has eroded the value of Naira, what States are getting now is close to nothing in real terms.
“The federal government should not say that they they have given N570 billion to States, when in actual facts, States are trying to plug holes.
“We have received our own share of the money, but, it’s not enough. It’s certainly not enough when we are spending N2.3 billion on feeding the people”, according to Mr Nehikhare.
He also recalled that the Government paid 25 per cent of its debt obligations few months ago, noting that the government has given leaders of religious Organizations in the State the sum of N2.5 billion within the past three months to arrest hunger in the State.
“Few months ago, Edo Government paid about 25 per cent of that debt portfolio. It ought not to have gone to that rate (N500 billion) until the dollar multiple or quadruple. So, if you look at it in real term, it is not like we have taken to look at because of the exchange rate.
“If your divide that figure (N500 billion) by 400 which use to be the exchange rate, you will know that the figure is below. But, when your divide that amount by N1600/$ as at today, we are having such a huge figure”, Mr Nehikhare stressed.
He lamented that Edo State paltry share from the federal government N570 billion Federation Allocation Account Committee (FAAC) given to the 36 States of the federation and the Federal Capital Territory to cushion the effects of fuel subsidy removal, were tied to financial commitments and other obligations.
Speaking further, the Commissioner said government did not receive truck load of rice, but got grains from the much tauted federal government palliatives.
He explained that the viral of looted bags of rice by angry youths in during the #EndBadGovernance protest in the State, belong to the State Chapter of Christian Association of Nigeria (CAN).
According to him, “I will say we received some trucks of rice. Recently, we got grains and garri. That is what we got. And it is distributed by the formula designed by the federal government. It was distributed to IDP and Local Governments”.
Continuing, Mr Nehikhare said, “Edo State government did not rebag any rice. Edo State government did not buy any rice. The rice you saw in that video, was bought by CAN, the body that is distributing the rice”.
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