Before going on six weeks recess last Thursday, August 13, 2015, both chambers of the national assembly, Senate and the House of Representatives brushed aside political differences and gave their nod to the $75million ( #14.7billion) World Bank loan sought by the Edo State Government. Shortly after President Mohammadu Buhari transmitted a letter to both chambers , August 4, 2015, requesting parliamentary approval for the loan onbehalf of the Edo State government, there was a rash of ill-motivated protests apparently orchestrated by some elements from the clan of the People’s Democratic Party, PDP in the state. But unknown to them, the loan was a done deal, the parliamentary nod was just to fulfill all righteousness because it was not a fresh loan requiring stringent scrutining. All the needful had been done by the 7th National Assembly in year 2013 and approval given for a $225 million (#44.1billion) soft loan with only one per cent interest to be paid back in 20 years! Can any one beat that, given the numerous huddles placed before potential beneficiary of World Bank loan facility? That is why I personal believe the Edo State government should have been applauded for its pains taken efforts, ingenuity and prudence in the management of the scarce resources in the state rather than condemnation for obtaining the loan at such a very cheap interest rate. For a highly reputable international financial institution like the Word Bank to have given such facility to a state in a Third World country like ours, clearly shows that it has satisfactorily done its due diligence on the country and indeed, on the state.
Again, unknown to these roubblerousers, out of the 17 states in Nigeria that applied for the facility about four years ago only Edo and Lagos states were granted approval. This facility was in three tranches and you must past through the crucible of the bank’s due diligence before you can access any of the tranches. For Edo, it was $225million (#44.1) to be accessed in three tranches of $75million (#14.7billion) each. The first tranche was obtained in year 2013 and well utilised to the satisfaction and admiration of the bank and Nigeria’s Debt Management Office, DMO, hence, the nod to access the second tranche. Chairman of the House of Representatives, Ad-hoc Committee on Foreign & Local Loans, Hon Babangida Ibrahim had told his colleagues at the House Committee of the Whole chaired by the Deputy Speaker, Suleiman Lasun that “Edo State has a debt ratio of about 29 per cent as against the current ceiling of 40 per cent set for states by the DMO.” He went further to say that “the DMO cleared the loan that is carefully articulated for development and it is budget-driven. According to Ibrahim, the Federal Ministry of Finance corroborated the presentation of the DMO, adding that it was what informed their favourable recommendation to the House. He went further to explain that “the loan would help the state government to tackle issues such as education, infrastructure and rural development”. He capped it all by saying that “the state government is operating at the acceptable borrowing limit”.
Presenting its report to the Senate at the plenary, chairman of the Ad-hoc committee on foreign and local debts, Senator Kabiru Gaya was full of sweet words for Edo State for its uncommon prudence and shrewd management of the first tranche of $75million.Hear him: ” Edo State has reasonably justified the borrowing and has acceptable debt sustainability level and therefore eligible to borrow.” He went further in his presentation to articulate what the state government intends to do with the loan in its efforts to boost the local economy. “Funds from the loan facility will be used to finance key programmes of the state to stimulate internally generated revenue, develop key infrastructure that will attract private investments and of course improve employment opportunities”. What I personally consider as the icing on the cake was the advice from the Senate Leader, Alli Ndume to states that go for local loan facilities. He urged them to emulate Edo State and go for World Bank facilities with relatively low intrest rates instead of local banks at cut-throat rates.
Unfortunately, the PDP senators from Edo State, Matthew Urhoghide (South) and Clifford Ordia (Central) were neither swayed nor impressed by all these positive recommendations from the World Bank’s Country Office in Nigeria, the DMO and the Federal Ministry of Finance on Edo State prudence, fiscal discipline and above all, its debt management profile. Not even the corroboration by their distinguished colleagues would make them see reasons. Their minds were made up to paint the APC government in the state black and shoot down the loan request without minding the negative effects on the various on-going developmental projects in the state waiting for completion. Urhoghide anchored his argument on the so-called 2,000 text messages he claimed to have received from his constituency back home. According to him, Edo State is ranked the fourth among the highly indebted states in the country, quoting some bogus imaginary figures, adding that there was nothing on ground to show that the first tranche of $75million was judiciously utilized. Deep down his hearth, the distinguished senator knew that he was being economical with the truth and only playing to the gallery instead of applauding the government’s developmental efforts and fiscal discipline. He knows that his senatorial zone, Edo South has never had it so good in the history of the state in terms of monumental people-oriented developments across the local governments. Massive and high quality road constructions, the humongous Benin Water Storm Project, the red roof revolution in schools, the ambitious modern Central Hospital project, the human capital development, need I say more? Similar projects are also on-going in the North and Central senatorial districts of the state. Yet, Urhoghide says loan received not judiciously used. He can tell that to the Marines. Nigerians and indeed, the good people of Edo State are more likely to believe credible organizations like the World Bank, DMO, Federal Ministry of Finance and of course the Senate and House Committees rather than the tissues of lies being churned out by Urhoghide. He is nothing but a product of bad politics which has been the bane of Nigeria. The day Nigerian politicians start to see and say something positive about the opposition the better for us all.
Gov. Adams Oshiomhole
