Adamawa State Commissioner of finance, Dr. Ishaya Dabari has disclosed that the Ahmadu Umaru Fintiri’s government only took N15 billion loan facility since assumption which has already been liquidated.
Dabari who made the disclosure during the 2023 budget breakdown on Monday, said, Adamawa State government has a clean account.
“We have external loan which we inherited. We have internal loan which we have taken. The internal loan that we took which is N15bn when we came on board has been liquidated using the proceed of the N25bn that we issued bond in respect of the agro business.
“So we sorted the loan that we have taken so that we have a single digit deduction. We restructured the internal loan which was affecting the payment of salary.
“Every month we got allocation, it will go into overdraft and that is why we decided to restructure it into a long term loan of 4 years we are paying.
“So that is why we don’t have issue of overdraft in payment of salary. We always have clean account. These are the loans that we have taken since we came on board.
“Of course the agro business loan we have, the bond is one billion approved for us by the stock market. Today if you so wish, if the need arises we can access up to N75bn but for now we have not seen the need and we do not make provision of N75 bn facility to finance the 2023 budget.
“Of course there are deficit between our revenue and budgeted expenditure but that is not very significant to consume the whole facility that we have through the agro business. For the agro business, much has been invested in the cattle markets,” he said.
The commissioner of finance also dispelled rumours that the rehabilitation of the cattle and grain markets did not start despite the N25bn agro business bond noted that work has commenced in most of the markets adding that the state government can comfortably give account of the bond and its utilization at at any point in time.
“I don’t know whether you have not carried out your investigation. Work has commenced in some markets. Of course we have a special committee that is handling all the aspect of agro business.
“We have also a bank guarantee of N5bn to guarantee farmers who want to participate in the business because the bank will not just give loan to people without guarantee.
“That money is not to be used anyhow but if there are fears by any commercial bank to give facility to those participating in agro business the state will come to guarantee with what we have already standing to the credit of the state government,” he said.
Dabari disclosed that in the 2023 budget there will be minimal borrowing as the state government intends to finance the budget from FAAC allocation and IGR.
He also disclosed that the performance of IGR is fair despite the hiccups encountered in the implementation of the agro business scheme noting that in 2023 the IGR is expected to grow as the state government resolved some of the teething challenges encountered in the process of implementing the agro business scheme.
Dabari also disclosed that the accountant general office will receive the highest priority because of the debt serving both foreign and local followed by the ministry of works.
” Of course the accountant general tops the priority because of debt serving both foreign and local, then ministry of works as there will be more constructions. We have heard the governor said there will be another flyover and dualization of bypass road and all the local government headquarters will have an increase of roads for construction,” he said.
