Akwa Ibom now ready for FG’s bailout – finance commissioner

Akwa Ibom State government says it is now ready to go for the financial assistance given to states by the Federal Government after it has met the ‘sustainability analysis’ required to qualify for the loan.

The state did not benefit during the first round of the bailout fund because it felt it was not necessary at that time.
Speaking in Uyo, the state capital, Akan Okon, commissioner for finance, said the state government would avail itself of the window being offered by the new loan facility to enable it pay workers and to meet other obligations.

Okon said the state government has continued to face revenue shortfall in its revenue allocation from the Federation Account saying that it has worsened in the recent months.

According to the commissioner, the state receives N5.3 billion in May allocation while it spent N4.8 on  wage bill leaving a balance of N500 million which he says is not enough for government activities.

‘’This figure is barely enough to pay salary, the state government’s commitment to the gas project and what will be left will not be enough, that is why we are going for the financial assistance,’’ he said.

He said the conditions for all states are uniform adding that no state can take more than N15.5 billion depending on its sustainability analysis.

The commissioner who announced that the Internally Generated Revenue collected between May last year and June this year was N15 billion which according to him shared among the local governments noted that money accruing to local government from the Federation Account has been barely enough local government employees, payment of primary school teachers and their pensioners.

Okon who announced that the N64.5 billion commercial bank debts Akwa Ibom owed that was converted to Federal Government bonds for a ten year tenure has helped to cushion the effect of huge debt serving as the state government now pays N500 million monthly instead of N5.5 billion.

Maintaining that despite the dwindling revenue, the state government is not indebted to civil servants in the state, the commissioner said initiatives were being implemented that would sanitise revenue collection machinery adding that it is an ongoing exercise.

On the troubled Akwa Savings and loans company, a Microfinance Bank and Primary Mortgage Institution owned by the state government, he said a board of inquiry has been instituted to examine its performance with a view to position it for better services.

He assured that the 2016 budget would be implemented despite the financial difficulties the state is facing adding that the current bleak economic outlook would not be forever.

The commissioner also said the huge revenue that the state government received in the past during the period of the ‘boom’ was well utilised in the provision of infrastructure across the state saying that as a developing economy, it would have been difficult to stop spending on development projects.