Politics
Ugwuanyi poised to develop state in spite of low revenue
There is no going back on the promises of Enugu State Governor, Ifeanyi Ugwuanyi to consolidate on the infrastructural development of the state despite huge debt burden. MAURICE OKAFOR in Enugu reports
There are indications that the Enugu State governor, Hon Ifeanyi Ugwuanyi, will consolidate on infrastructural and socio-economic development of Enugu state as he promised during his campaign tours to the various council areas of the state. He promised to consolidate on infrastructural development of the state, taking off from where his predecessor, Mr. Sullivan Chime stopped.
Notwithstanding, the general feelings and fears of the people since his swearing in on May 29,2015, is how the new administration hopes to generate the necessary funds to execute its programmes. The coal city state faced with low federal allocation and poor Internally Generated Revenue will be confronted with the burden of regular payment of workers’ salaries before committing the remaining to infrastructural development of the state.
Basically, Enugu State is among the states in the federation whose share of monthly allocation from the federation account is low, coupled with low IGR profile based on non- diversification of the state’s economy. The state capital, Enugu, which is the major city in the state, is simply referred to as ‘civil servants’ city. It is worrisome that the state owned companies like Niger Gas and Steel, located at Emene, the vegetable oil company, AVOP, stationed at Nachi near Udi, the Sunrise flour mills, and the Presidential Hotel, located at the heartbeat of the town, have remained moribund.
The envisaged financial predicament of the Governor Ugwuanyi’s administration as he mounted the saddle of governance also stems from the speculation that his predecessor left behind an empty treasury and a debt burden of over N7 billion.
Though a lot of Ugwuanyi’s associates and friends based on the financial status of Enugu State at the moment, expressed views that Ugwuanyi became the governor of the state at a very difficult and challenging moment, they allayed fears that he will not succeed.
Hallmark was told that Ugwuanyi has always expressed confident that he will pilot through the troubled waters and still deliver good governance and his promise of democracy dividends to the people.
Towards achieving this goal, Hallmark checks in Enugu state revealed that Ugwuanyi has set the ball rolling for a consolidated development of the state, amidst economic down turn in the country. This is predicated on the fact that the federal lawmaker turned governor has come up with unique initiatives, ideas to drive his four point agenda of taking Enugu state to laudable heights.
An in-depth look of the list of 24 commissioners that have resumed duties last week shows that they are men and women of proven integrity in their various fields, in as much as their candidacy satisfied the political zoning culture in the state.
There are people like Engr. Mike C. Eneh, who have been designated as the commissioner for agriculture, Barrister Charles Egumgbe, the pioneer state chairman of PDP, who was assigned position as commissioner for water resources; Barrister Ogbonna Asogwa, a seasoned activist in the state; the trio of Hon Chijioke Edeoga, Hon Princess Peace Nnaji and Hon Ambassador Fidel Ayogu, all of whom have served as lawmakers in the House of Representatives will bring their experience to bear in the running of the state’s affairs.
Ugwuanyi said their appointments were made on merit and in accordance with the dictates of geo-ethnic balancing as enshrined in section 14 (4) of the constitution of the Federal Republic of Nigeria. He charged them to work hard in the overall interest of enthroning good governance and the infrastructural development of the state, adding that there will be no excuse for failure.
The Enugu State governor cautioned the state commissioners and said, “I urge you to eschew all divisive or diversionary ideas or actions but rather remain focused on ways and means that would lead to the accomplishment of individual and collective responsibilities to the state and her citizens.”
The state chief executive reminded them that they are individually and collectively expected to employ their vision, competence and experience to implement measures or schemes that would help actualize the objective of government in all sectors of the
state’s economy.
Hallmark investigations revealed that the fear of huge debt profile of the state put at about N7b will not be a serious factor to undermine Ugwuanyi’s development agenda for the state. This stems from the fact that the state House of Assembly, a forth night ago enacted a law that permitted the state government to renegotiate with her creditors on possible ways of converting the loans into bonds. This way it can stretch between a periods of 180 months to 240 months of repayment, instead of instant payment of within 12 months.
Sources at the government House disclosed that the repayment of Enugu state government indebtedness to commercial banks, put at N400m monthly as negotiated by the past administration would have meant ‘cut throat or shylock demand’ on the present administration, in view of dwindling economic resources accruing to the state presently. But the recommendation and approval of the state Assembly to renegotiate and convert the loans into bonds, payable in parts over a duration of 240 months, have salvaged the situation for Ugwaunyi’s-led administration.
The motion to allow the executive restructure the loan into bond was sponsored by the leader of the House, Hon. Ikechukwu Ezeugwu and 21 other members that include the deputy speaker, Donatus Uzogbado as well as the chief whip, Matthias Ekweremadu.
Contributing to the debate on the motion, one of the co-sponsors and the deputy speaker, Uzogbado lauded the previous administration which left the debt burden of over N7 billion as being prudent in expenditure owing to the paucity of funds that accrued to the state.
Uzogbado said the motion was apt because it would reduce the monthly repayment loan of N400 million to a lesser amount to enable the government carry out its development programmes.
Member representing Aninri constituency and chief whip of the House, Matthias Ekweremadu said the long term idea of repaying the loan “will help us as a party and a government to do the needful for the people.” Ekweremadu said when the loan is restructured for a long time; it would be good for the state.
SKE Ude-Okoye, representing Awgu North constituency said, “The motion before us, I see it as a motion like the kind of mission the UN does to rescue our states from financial quagmire that we are into.
“If it is passed, it will help us as a state. If we don’t do this, what it simply means is that all our campaign promises will be tampered with. I have seen that the federal government meant well by bringing out this kind of idea that loans owed commercial banks be converted into bonds.
The speaker of the state assembly, Edward Ubosi, described the federal government as the ‘messiah’ that has saved Enugu state government from the financial mess the present administration under Ugwuanyi inherited.
Ugwaunyi as part of his economic policy for survival had initially constituted an advisory economic team that comprise of entrepreneurs, to advise the state on its initiative of fronting a new economic agenda and development for the state.
The team which is made up Professor Obiora Ike, Prince Innocent Maduka, the chief executive of INNOSON group of companies, Chief Mrs. Lorreta Aniogulu, who runs a consortium of business firms among others were tasked to define means of attracting foreign investments and sponsorship of the various state projects as part of its terms of reference.
In the past two weeks, the committee set up by Ugwaunyi on ‘Nsukka Urban Renewal’ headed by Engr. Chris Offor and Surveyor Ugoh Chime has set the ball rolling by advancing their duty into the university town of Nsukka. The university town of Nsukka is among the four towns in the state, which the governor listed for socio-infrastructural reinforcement in its bid to develop more townships, with economic and commercial values out of Enugu.
Others include the 9th mile corner which will be developed to a free trade zone, Oji River town, a boundary town with Awka, the Anambra state capital, among others.
The Ugwuanyi’s administration has also made inputs in the state health sector, with his administration’s resolve to upgrade the three hospitals in Enugu North senatorial district to enhance adequate health facilities for people living in the zone. And save them from the burden of traveling several kilometers to Enugu for healthcare delivery. The hospitals include the Enugu-Ezike General hospital which will be upgraded to a specialist hospital, while both Nsukka district hospitals in Nsukka and Comprehensive Health Centre, Amalla Orba in Udenu local government area will be upgraded to the status of General Hospitals.
The state commissioner for Health, Dr Samuel Ngwu, who was on a fact finding mission to these hospitals over the weekend, assured that work will start in earnest in realization of the state government objectives. He pleaded for the cooperation of the local government authorities and traditional rulers in the various communities, in securing both the lives and equipments of the contractors, as soon as they move to the sites.
