… Says APC lacks credibility to discuss debt management in Delta State
By Ovasa Ogaga,
The Delta State Chapter of the Peoples Democratic Party (PDP) has strongly criticized the All Progressives Congress (APC) for its recent comments regarding the state's debt management strategies. The PDP accused the APC of attempting to mislead the public about Governor Sheriff Oborevwori’s efforts to reduce the state's debt profile and ensure financial stability.
In a statement signed by its Publicity Secretary, Valentine Onojeguo, the APC had downplayed the significance of Governor Oborevwori's measures to curb the state's debt. The PDP, however, argued that the APC lacks the credibility to discuss debt management, given its poor handling of the national economy during its time in power.
Highlighting the economic challenges under the APC-led federal government, the PDP pointed out that Nigeria's national debt skyrocketed from N7 trillion in 2015 to over N90 trillion by 2023. The party attributed this rise to reckless borrowing, poor management of the nation's crude oil production, and inefficient fiscal policies, which led to significant devaluation of the Naira and rampant inflation.
The PDP emphasized that Delta State, under Governor Oborevwori, has taken a different path by focusing on reducing inherited debts and ensuring that the state's expenditure remains within its revenue limits. The governor has reportedly reduced the state's debt profile by N180 billion through prudent financial management, contrasting sharply with the APC's approach at the federal level.
Governor Oborevwori's 2024 budget further reflects this commitment, with significant cuts to overhead costs and executive spending, alongside increased investment in infrastructure and social welfare. Despite a budgetary provision for loans, the PDP noted that the administration has not resorted to borrowing, a decision it lauds as a demonstration of fiscal responsibility.
The PDP's response underscores a broader critique of the APC's economic management at both national and state levels, arguing that the APC's mismanagement has left Nigeria with a debt burden that future generations will struggle to bear. Delta State, the PDP insists, is on a path to becoming debt-free under Governor Oborevwori's leadership, a stark contrast to the APC's legacy of fiscal irresponsibility.
This clash between the two parties continues to highlight the broader debates over economic governance and fiscal responsibility in Nigeria.
The statement reads in parts:
“Given this background of APC management of the economy from 2015 to 2023, as we have seen attested to by its Ministers of Finance, it can only be shameless pretence, though in line with its usual deceitfulness, for the APC to question why component States of the federation had to source market funds, including loans and bonds, to be able to function effectively in the service of their people.
“According to the National Bureau of Statistics, Lagos, an APC State, led in the borrowing with close to N1 trillion.
"Lagos State recorded the highest domestic debt in Q2 2023 with N996.44 billion (and) recorded the highest external debt with US$ 1.26 billion, followed by Kaduna with US$569.38 million."
“Delta State, like all other States could not have been an exception in seeking ways and means to serve its people. With a total exposure of about N450 billion accumulated through the years into the first quarter of 2023, as forced mostly by consequence of APC mismanagement of the national economy, Delta State holds neither the highest domestic nor external debt, and the immediate past administration of His Excellency, Senator Dr. Ifeanyi Okowa, clearly outlined the infrastructure projects on which borrowed funds were applied, as are visible across the State.
“However, in the current dispensation, even when the APC federal government and some other States have continued to borrow, Governor Sheriff Oborevwori has decided not only to hem borrowing but also to pay up and reduce inherited loans and interests in order to safeguard the State from the kind of debt service burden that has crippled the nation under the leadership of the APC.
“Such commitment is not only noble, but can only be executed through a deep sense of leadership responsibility and financial prudence as Oborevwori is demonstrating.
“In his 2024 budget appropriation, he was emphatic about keeping the State expenditure within revenue limits, reducing its debt profile and ensuring that the administration does not build new inflationary pressure through extra budgetary funding. In simple terms, his government is averse to borrowing, profligacy and expenditures that are not planned nor budgeted for.
“It was for this reason that he cut down on various items relating to executive cost of running government while he increased the budget volume for projects and programmes directly related to providing for the people, communities and workers.
“This was demonstrated in the reduction of Overhead Cost by N9.7 billion or 8.35%, from N116.2 billion in 2023 to N106.5 billion in 2024; the reduction of the vote for Grants and Contributions by N4.7 billion or 32%, from N14.7 billion in 2023 to N10 billion in 2024; the reduction of the capital vote for the Administration sector by N20.9 billion or 48%, from N43.6 billion in 2023 to N22.7 billion in 2024; and the drastic reduction of Contingency provision by N8.2 billion or 61.7%, from N13.3 billion in 2023 to just N5.1 billion in 2024.
“While the budget made a provision of N50 billion for possible receipts from loans, it is on record that the administration has not borrowed a dime in its almost fifteen months, notwithstanding the financial requirements for the execution of high-level infrastructure projects, workers and social welfare investments, and human capital development programmes being churned out across the State.
“Rather, Oborevwori has saved over N205 billion through financial efficiency and gone on to reduce the State debt profile by N180 billion.
“It is these achievements in the financial management of the State that the APC is quarreling with.
“But see why we will not bother about their charade: They want the State to be run the way APC has misrun the national economy since 2015, in which through their reckless borrowings they led Nigeria into servicing its debts hanging with over 97% of its national revenue, and borrowing evermore in the attempt to sustain the economy on borrowed life wire, while actually crashing it. God forbid that to happen in Delta.
“On the contrary, Oborevwori is determined to manage Delta into a debt-free State.
“Thankfully, from the relative increase in oil production output, especially in Delta as occasioned by Oborevwori's efficient management of relations with oil producing communities, there is increased allocation to the State and he is focused on managing the State economy within its means, including intensified IGR, to administer the State in such manner that debts would not be left for coming generations and administrations to inherit as the APC does and would want to see in Delta State.
