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Stakeholders Express Worry over Gombe Gov’s Mounting Debts from Loans … Urge CBN to avoid granting any fresh loan to the State

Stakeholders Express Worry over Gombe Gov’s Mounting Debts from Loans … Urge CBN to avoid granting any fresh loan to the State


The Central Bank of Nigeria (CBN) has been urged to not advance any recent mortgage request to the Gombe State authorities, to be able to keep away from burying the state beneath a mountain of debt from frivolous loans being obtained by the State Governor, Alhaji Muhammadu Inuwa Yahaya.

The recent name was made by a involved group of stakeholders beneath the umbrella of the Gombe Good Leadership Association (GGLA). The identical group, in a latest assertion issued and signed by a Trustee of the Association, Mohammed Salisu Abdullahi, had raised the alarm over the rising debt incurred by the Governor allegedly for growth objective.

However, the group expressed fear that the governor has ignored the calls to keep away from gathered money owed with the hazard of mortgaging the state’s future, and has gone forward to hunt extra loans working into billions from banks.

The group, within the new assertion titled ‘The Gombe State Borrowing Governor Is At It Again’, lamented that, “the Governor has plunged Gombe State into a quagmire of crippling debts. Nothing is more reckless than borrowing money to repaya debt or cope with the crushing effect of existing debts.”

“The public will recall that now we have just lately made a pressrelease in regards to the spate of reckless borrowing by theMuhammadu Inuwa Yaya-led Administration of Gombe State. Just after we thought we had seen all of it from the Governor, a replica of the letter by the Governor to the Honourable Speaker of the Gombe State House of Assembly dated 20 October 2021 with reference quantity GO/GD/FED-98/V.I proved us fallacious.

“In the letter, the Governor is requesting for the resolution of the Gombe State House of Assembly allowing him to access theFederal Government’s Bridging Finance Facility in the sum ofN18,746,059,992.57(Eighteen Billion, Seven Hundred and Forty -Six Million, Fifty-Nine Thousand, Nine Hundred and Ninety-Two Naira, Fifty-Seven Kobo)”, the GGLA added.

According to the assertion, “In the words of the Governor, Mr. President has approved “Six Hundred and Fifty-Six Billion, OneHundred and Twelve Million, Nine Thousand, Seven Hundred and Forty Naira, Three Kobo (656,112,9,740.03) BridgingFinance to 35 States of the Federation to cushion the effect ofthe repayment of the existing Federal Government InterventionFacilities (Budget Support Facility, Excess Crude Account-Backed Loan Facility and Salary Arrears Bailout Facility).”

“For emphasis, we reiterate that the Muhammadu Inuwa Yaya-led Administration of Gombe State has, between  March 2020 and July 2021, procured the following debts: “N14.5 Billion from Guaranty Trust Bank (GTB) Plc; N2.0 Billion to finance Healthcare Infrastructure  Development in Gombe State; N12.0 Billion Credit Facility from Guaranty Trust Bank Plc; N10.8 Billion Finance Facility from United Bank for Africa (UBA) Plc, and N5.0 Billion from Family Homes Funds for the provision of one thousand units of Affordable Housing Units”, it added.

According to the Association, “The above-listed debts do notinclude the N11 Billion borrowed by the previous Administration for the Gombe Revenue Optimization Company Limited (GROCOL) but received by the present Government.This N11 Billion brings the total amount of money obtained as debt by the Muhammadu Inuwa Yahaya-led Administrationwith a space of a little over two years to N55.3 Billion.”

“If the Governor is allowed to obtain the N35 Billion debt that has been hurriedly approved by the Gombe State House of Assembly on 13 October 2021 and the proposed debt of N18,746,059,992.57, for which it is seeking approval in his  latest letter to the Speaker of the Gombe State House of Assembly, the Governor would have succeeded in amassing a total debt of over N109 Billion (One Hundred and Nine Billion Naira) in a little over of two years of his administration.”

The affiliation famous that, “There isn’t any gainsaying that the debt service to the general income of Gombe State is extreme and inimical to the financial and developmental aspirations of theState. From the Governor’s exhibiting, the income of the state can not even deal with the recurrent and debt servicing portfolio of the State.

“The Federal Government has been indulging State Governors and pressuring the Central Bank to lend monies (it doesn’t have) to Governors  beneath all kinds of doubtful tasks and schemes.We due to this fact name on the Central Bank to resist any temptation to additional advance any mortgage to the borrowing Governor of Gombe State who’s hell-bent on mortgaging the state to fulfill hisselfish ends,” it added.

 

 

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