Lagos, Ekiti, others deny debt report

SEPTEMBER 7, 2013

Ekiti State Governor, Kayode Fayemi
| credits: naijamayor.com

The Fiscal Responsibility Commission, on Thursday, released a report claiming that some south-western states were in huge debts. Reacting to the report, most of the states indicted in the report stated that the report was outdated and did not reflect the present happenings in the states.

The Ondo State Government on Friday said the report of the FRC which claimed that the state was over-indebted did not capture the present state of things in the sunshine state.

The state’s Commissioner  for Information, Mr. Kayode Akinmade said that the report which was released on Thursday, was outdated.

He said, “Going by the date of the report, this could not have been the latest status of Ondo state’s debt profile because this is a 2011 report. However, from time to time, we go to look for finance from the Money and Capital market.

“Every state carries some debt profile, ours is very sustainable, our debt service ratio is below 20 per cent.”

Senior Special Assistant to Kwara State governor, Dr. Muyideen Akorede, did not answer calls by our correspondent.

The report called on the Central Bank of Nigeria, Security and Exchange Commission and other financial clearing houses to control the rate at which state government obtained loans.

In his reaction to the claims of the FRC, the Commissioner for Finance in Ekiti State, Dapo Kolawole, in an interview with our correspondent, refuted the claim by the FRC.

He stated that the information is false and the data is wrong. He further challenged them to publish their data. The commissioner stated that the state was a very prudent.

Kolawole said, “The information is false and the data is wrong. Ekiti is one of the most efficient states in the country. In terms of financial management, we are very efficient and prudent.

“It is embarrassing for somebody sitting somewhere in Abuja to tell me that Ekiti is one of the states that over-borrowed without a crosscheck. What is the basis, statistics and how much have we borrowed compared with the state GDP?

“The Debt Management Office in Abuja can qualify to talk about the debt profile of Ekiti State and we are the first to set up the State DMO. We understand what it takes to borrow. If somebody from the Fiscal Responsibility Commission is alleging that we have a huge debt profile where did they get the information from? I challenge them to publish their data.

“I make bold to say that Ekiti is one of the least borrowing states in the country. We have tied every borrowing specifically to regenerative assets that everybody can see. I will advise them to concentrate on the Federal Government and allow us to do our job.

Also, the Lagos State Government on Friday noted that the state is solvent and capable of redeeming any of its commitment. The state government said the observation of the FRC  that the state was one of the state in serious debt was careless and capable of causing disaffection.

The Commissioner for Information and Strategy, Mr. Lateef Ibirogba, questioned the genuineness of FRC’s submission adding that Lagos had not borrowed money for recurrent expenditures but for capital projects.

He added that it was standard practice for government to source money for some of its capital projects.

Ibirogba said, “Lagos State is not in any serious debt. I don’t know where FRC got its information from. We have not borrowed to pay salaries or any other recurrent expenditure. The funds sourced for are being used for capital projects for the benefit of the residents.

“The state has not defaulted in any of its commitment to its creditors. The bonds that government had floated are being serviced as at when due. As a matter of fact, any of our bonds are usually sold out. If the state is in serious debt, we couldn’t have done all these and more.”

Bayelsa State could not give specific detail on the report due to its technicality. When contacted by our correspondent, the Commissioner for Information, Bayelsa State, Mr. Markson Fefegha, said he could not comment offhand because of the technical nature of the matter.

“I cannot get the details now. The people to consult are not around.”