The Akwa Ibom State chapter of the Nigeria Labour Congress (NLC) has expressed fears over the state’s rising debt portfolio.
The body warned that if left unchecked, the debt may spell doom for the state. in the face of the current economic quagmire,
It further criticised the appropriation of N50 billion in the 2022 budget to service public debt.
The body’s stance was disclosed by the state chapter’s chairperson, Comrade Sunny James, at a public hearing on the state’s 2022 Appropriation Bill organised by the House of Assembly on Tuesday in Uyo.
“This is against N45.69 billion for this year 2021 and in 2020 which ragged N20.7 billion,” he pointed out.
The chairman also frowned at the state government’s growing appetite for financing long-term capital projects with non-concessionary commercial bank loans with short average-to-time maturity.
He called on the state legislators to take a close look at the scenario with the view to saving the state from going bankrupt.
He said: “A whopping N50 billion would be used to service the public debt. In 2021, debt servicing consumed N45.69 billion while in 2020 it gulped N20.7 billion.
“The Nigeria Labour Congress submits that the State’s rising debt portfolio is not sustainable in the face of persistent volatility in the primary energy products market and the global spectacle of energy transition.
“We have noted an increasing preference by the state government for the financing of long-term capital projects with non-concessionary commercial bank loans with short-average-to-time maturity (ATM).
“This belies rumoured vested interest in this regard is patently unhealthy for the state’s finances. We appeal to this honourable House to safe-guard our future by taking a more than cursory look at the nature and structure of the state’s debts,” he stressed.
Earlier, the speaker of the House, Mr. Aniekan Bassey, in his opening address said the public hearing was on the bill for a law to appropriate monies out of the consolidated revenue fund and capital development fund to the service of Akwa Ibom state government and other matters connected therewith.
Bassey stated that the exercise re-echoed the commitment of the 7th Assembly to live up to its mandate of making people-oriented laws and the abiding promise to have stakeholders and the generality of the people of the state fully involved in its deliberations through participatory legislation.
The speaker, who was represented at the event by his deputy, Mrs. Felicia Bassey, said the House would take all contributions presented by all participants at the public hearing, and where applicable, shall form part of the final draft of the bill before passage into law.