Point On The Loan Request

Much of the progress needed in Anambra State cannot happen without solid infrastructural base, especially the transport system. How do you start addressing the huge infrastructure decay and demand by citizens without borrowing in the short term?

Already government is drastically reducing the cost of governance, instilling the culture of prudence and value-for-money; addressing insecurity head-on, digitizing the revenue collection system to increase coverage and reduce leakages (to increase internal revenue over time), recruiting thousands of teachers and doctors; embarking upon aggressive urban renewal; to implement massive youth empowerment etc.

In the short term, debt is required to break the “trap” but with every kobo of money borrowed devoted to infrastructure financing and bankable projects — and fully serviceable from the IGR flows.

The government is embarking upon a massive reform of the internal revenue system. What is actually needed is about N250 billion, but N100 billion in the first instance, and future borrowing (if needed) will be contingent upon internal revenue growth and debt sustainability analysis.

That’s the pathway to transformation and growth in the face of a literally empty treasury and Oil revenue down to zero with statutory allocation barely able to pay salaries. Attached is page 54 of Soludo’s manifesto and his thoughts on funding options.

 

 

 

– Mazi Ejimofor Opara writes Awka, Anambra State.