Governments throughout the world borrow funds to stimulate the economy to secure the future of its people. Borrowing by a government is not a crime; if there are well-spelt priorities and prudent management of funds including efficient debt management strategies.
The Fintiri government has so far borrowed billions of naira in just two years- N9.9 billion for the 2000 housing units, N17 billion for critical projects and N4 billion for Adamawa State University and the recently approved N100 billion bond for agribusiness. Though, to its credit, the government was able to restructure many loans collected by the previous governments. As of March 31, 2021, Adamawa State domestic debts stood at N95, 223, 661, 061.51.
Massive borrowings without proper forecasting and strategy for investment always lead to heavy debt burden and create adverse effects for the economy and on the poor people. The big question- is the Fintiri government borrowing without prioritising? Did the government put in place plans for the efficient utilisation of the borrowed funds? Or it is just the same old Nigerian story?- borrowing for consumption.
On August 21, 2021, the Daily Trust published a story on the structural decay at foremost General Murtala Mohammed College Yola, but few metres away from the school, the Fintiri government is constructing a multi-billion naira flyover and inter-change- misplacement of priority? There is news going around that the Fintiri government is in the process of renovating and furnishing the Adamawa government lodge in Maitama, Abuja, at the cost of N250 million of which 100 million has already been released. Another misplaced priority? The Boni Haruna administration bought the building at the cost of 100 million.
On August 18, 2021, the Adamawa State executive council approved the sum of N56 million for consultants to monitor the completion of the 40km Pella-Maiha Road which was awarded in 2007. The project which was worth N3 billion but now N9 billion (the adjustment happened between period the Nyako-Bindow governments) though, there is nothing wrong in hiring good consultancy firm in order to get excellent results. However, prioritising of needs of the people is very important for a government like that of Adamawa State with meager resources and very poor people.
Critics of the government always point that a very important problem with the administration is that it is unmindful of capital flight from Adamawa. Most of its contracts are handled by non-indigenes.
However, to be fair to Fintiri, it is not easy governing Adamawa State, but accepting some good advice can help.
This article was written by Zayyad I. Muhammad and published in the DAILY TRUST NEWSPAPER on Aug/25/2021