The Federal House of Representatives on Wednesday warned Governor of Bauchi State, Alhaji Isa Yuguda and other incumbent state governors to slow down on their accumulation of domestic and foreign debts, saying the action, fast becoming de rigueur, portends serious consequences for the state and for succeeding governors.
The lower legislative chamber raised the concern on Wednesday during an interaction with Governor Isa Yuguda on his plans to borrow a whopping $171 million, specifically chiding him for embarking on another borrowing spree despite failing to offset outstanding multi-billion naira debts of the state.
The House Committee on Debts, Aids and Loans, led by its chairman, Adeyinka Ajayi, equally queried the discrepancy in the figures quoted by the Debt Management Office (DMO) and that requested by Yuguda. While the DMO captured $75 million, Yuguda requested $171 million.
Responding, Yuguda described the difference as a typographical error but Director General of DMO, Abraham Nwankwo claimed the figure he received from the Federal Ministry of Finance was $75 million.
Yuguda argued that the $171m loan sought by the state government from Exim International Bank of China would help in the implementation of an Independent Power Project (IPP) in the state through a Chinese company.
“We are aware that if we have power, our industries will have the power to produce,” he said. “We are giving priority to power because that is the only sector that will bring you sustainable development when you get it right. Once there is steady power, the manufacturing sector would thrive and there will be employment.”
Other states enlisted on the 2012-2014 External Borrowing Plan of the Federal Government include Lagos, Edo, Kaduna, Ondo, Yobe, Ogun, Cross Rivers, Adamawa, Kwara, Niger, Enugu and Oyo.
