…Say Uzodimma didn’t attract FDI in 2023
From George Onyejiuwa, Owerri
Civil society groups comprising the Civil Society Legislative Advocacy Centre (CISLAC) and Christian Aid and Tax Justice and Governance Plaform (TJ&GP) have slammed the Imo State House Assembly for failing in their oversight functions of ensuring fiscal responsibility of the state governor, Senator Hope Uzodimma.
Worried by the humongous domestic debt profile of Imo State, which stands at N220.8 billion, a foreign debt stock of $77.8 million as at June 2023, the groups claimed that poverty in the state has deepened with unemployment rate levels rising to 56.6 per cent as at June 30, last year.
The civil society groups also lamented that the state did not attract any foreign direct investment through out 2023 as was the case in other Southeast states.
The state Coordinator of the CSOs, Mr Chibundu Chiegbu, who stated this at a press conference flayed the Imo Assembly for shirking their constitutional responsibilities by passing a fiscal responsibility law as it is in other states and at the federal level to ensure fiscal prudence on the part of the state government.
The groups said: “The data from NBS as at 30th June, 2023 shows that while the domestic debt profile of the state stands at N220, 838, 595, 301; the foreign debt profile at the same time stands at disturbing $77, 813, 615. This coupled with unemployment rate that levels at 56.6 per cent also as at 30th June, 2023.
“Also, in a report released by NBS in December 2023, Imo State attracted zero FDI in the whole of 2023. The same result produced in 2020, 2021 and 2022. This is disturbing.
“For us as advocates of good governance and economic justice, this is worrisome. No doubt, the escalating debt burden in the state has profound implications on the well-being of over 6.7 million Imo population.
“There is possible link between debt and unemployment. With the record released by NBS as at 30th June, 2023, Imo State posted the highest total debt stock, also recorded the highest unemployment level in the Southeast, while Ebonyi State with the lowest debt stock also recorded the lowest unemployment rate in the region. Again, where governments borrow from the domestic market, there seems to be a crowding out of local business as banks prefer to lend to governments more than they do to entrepreneurs. “Additionally, where workers and pensioners are owed arrears of salaries and pensions, the purchasing power of the people diminishes with its attendant negative impact on businesses.
“While we are proffering measures and recommendations in addressing these disturbing situations in our state, both the executive and legislative arms of government have their different roles to play all aimed to put the state in the path of economic growth and fiscal prudence.
“In accessing loans, the House of Assembly should come up with these actions through law-making or/and oversight powers: Enact legislation making it compulsory that every loan collected by the government – both domestic and foreign – should be tied to identifiable capital expenditure development programmes and projects.
“Enact Fiscal Responsibility Law (FRL) in the state as at the federal level emphasizing on debt management, transparency and accountability in all fiscal related-matters.”
The groups also said that there should be strict adherence to the Imo State Public Procurement Law No 12, 2010 in all awards of contracts, where qualified contractors with tract record of contract execution should be used in executing public programmes and projects.