A consultant with Arewa Research and Development Project (ARDP), Aminu Buhari, has disclosed that Adamawa State on annual basis must borrow between N20bn – N25bn to be able to sustain debt service and carry out capital projects.
The consultant made the disclosure during a one day workshop organized by ARDP to allay fears of the state’s latest move to secure a N100bn agric business bond.
He noted that if the state continues to rely on handouts from federal government, through the monthly allocation of crude oil proceeds, the trajectory of borrowing will be sustained till eternity.
Buhari observed that Adamawa State is currently at a cross road financially as it is incapable of resolving its current cumulative debt of N152bn and has to rely completely on debt to finance its capital projects, noting that in most instances, the state has to restructure its debt which entails more burden to its people.
He noted that as a result of the passiveness of the previous governments to enthrone viable revenue generation options, the state has remained in perpetual economic limbo which will linger on, unless something drastic is done.
Buhari commended the Fintiri led administration for taking the gauntlet of pursuing alternative means of income generation through the agric business venture, which is the only way for sustainable and futuristic economic development.
He said, Adamawa State is endowed with human, mineral and agricultural resources which it could tap to achieve the bottom line of financial stability and sustainability.
He noted that in view of the shrinking revenue, narrow revenue base, poor market structures and the high tendency for liquidation, the state must fast track ways of generating fund for its activities noting that the informal sector which has been neglected over the years must be fully explored.
The consultant noted that after due and diligent research, ARDP recommended the Adamawa agric support business as the most viable option for the state’s economic rejuvenation and emancipation.
He noted that if the programs is implemented, the state has no reason to be poor or bankrupt as it will have solid and viable income for its activities.
He added that to be able to tap from the surfeit opportunities in the state, the government must create the enabling environment for business to thrive vis a vis formalising and incentivizing markets to attract visits.
He noted that the adoption of the above measures will open ways for government to generate significant revenue for the state as a result of surfeit economic activities which the state will attract.
Buhari noted that already 33 markets across the state have been selected for upgrade noting that the activity has the potentials of generating N180bn in the next ten years.
He added that apart from job creation, the upgrade of the markets will attract people from other states to Adamawa noting that with the availability of credit guarantee, more activities will be generated which will attract taxation.
