Group Questions Nigerian State Solvency

The treasury of the Rivers State government is without a dime, The Action Congress of Nigeria (ACN) has said in Port Harcourt. 

Party spokesman in Rivers State, Jerry Needam regretted that, despite media hype that the state government saves one billion naira every month, which should account for over N40 billion in the state coffers, its treasury is as empty as a leaking wallet. 

Jerry Needam accused the Rotimi Amaechi administration of spending Rivers State dry while pretending to be building a robust and healthy economy. He wondered why Gov. Amaechi would again be shopping for the whopping sum of N250 billion in bonds from external creditors if Rivers State is as buoyant as the PDP administration has been trying to make everyone believe. 

The Rivers ACN publicity secretary recalled that the present administration in the state had just last year, borrowed N130 billion to the detriment  of unborn generations in the state, even while it lied to Rivers people that it did not take the loan.

 Needam questioned what the Amaechi regime had done with the N130 billion, and challenged it to tell Rivers people what it intends to do with the new N250 billion loan being sought.

 The ACN in the state further challenged the Rivers State government to explain to Rivers State and the world what it benefits from its revenue contract with Skye Bank from which contract it boasted that at least N6 billion would be realized every month as internally generated revenue. 

The ACN wondered why the financial and economic position of the state would be so much in shambles as to warrant the loan being sought by the Rivers PDP administration just few days after its claimed victory for a second four-year tenure in Brick House, notwithstanding the huge allocations accruing to Rivers State from the federation account and the 13% oil derivation since the inception of the present administration.
 
In a swift reaction,Blessing Wikina,the acting Chief Press Secretary to the Governor dismissed the AC N of poor understanding of the global economics.
The party should have known that creditors chase around viable economies
To give them loan because they are sure that you can pay back.
Wikina said that it is only Lagos and Rivers state in Nigeria that can attract such a credit facility because of their sound economic rating.
On the compulsory saving,he challenged the opposition party to cross-check with Skye bank and would shock it to know that 30Billion naira is that account and cannot be touched because the savings is backed by law.
“The state is not broke.Taking a loan facility is not an indication that you are broke.The type of economy we are practising today is to sophisticated for AC N in the state to understand.They are still practising backyard and elementary economics.”Wikina said.

By Okafor Ofiebor/Port Harcourt