Dr. Ishaya Dabari, the commissioner of finance for Adamawa State, has said that Ahmadu Umaru Fintiri’s government has only taken out and paid back an N15 billion loan since taking office.
The Adamawa State administration, according to Dabari, disclosed the 2023 budget breakdown on Monday and has a clear financial record.
“We have an external loan that we inherited. We have an internal loan that we have taken. The internal loan that we took which is N15bn when we came on board has been liquidated using the procedures of the N25Billion that we issued a bond in respect of the agro-business.
“So we sorted the loan that we have taken so that we have a single-digit deduction.” We restructured the internal loan which was affecting the payment of salary.
“Every month we got allocation, it will go into overdraft and that is why we decided to restructure it into a long-term loan of 4 years we are paying.
“So that is why we don’t have an issue of overdraft in payment of salary. We always have clean accounts. These are the loans that we have taken since we came on board.
“Of course the agro-business loan we have, the bond is one billion approved for us by the stock market. Today if you so wish, if the need arises we can access up to N75bn but for now, we have not seen the need and we do not make provision for an N75 bn facility to finance the 2023 budget.
“Of course, there are deficits between our revenue and budgeted expenditure but that is not very significant to consume the whole facility that we have through the agro-business. For the agro-business, much has been invested in the cattle markets, he noted.
Ishaya Dabari also dispelled rumors that the N25 billion agro business bond did not start the rehabilitation of the cattle and grain markets, noting that work has already started in most of the markets and that the state government can confidently account for the bond and its utilization at any time.
“I don’t know whether you have not carried out your investigation. Work has commenced in some markets. Of course, we have a special committee that is handling all the aspects of agro-business.
“We have also a bank guarantee of N5bn to guarantee farmers who want to participate in the business because the bank will not just give loans to people without a guarantee.
Ishaya Dabari continued; “That money is not to be used anyhow but if there are fears by any commercial bank to give facility to those participating in agro-business the state will come to guarantee with what we have already standing to the credit of the state government,” he stated.
In the budget for 2023, according to Dabari, there would be little borrowing because the state government plans to fund the budget using money from FAAC allocations and IGR.
In addition, he stated that the IGR is performing fairly despite the setbacks in the agro-business scheme’s implementation, stating that in 2023, the IGR is anticipated to increase as the state government works to address some of the early implementation problems.
Additionally, according to Dabari, the ministry of works will be given priority over the accountant general office due to its responsibility for servicing both domestic and foreign debt.
“Of course, the accountant general tops the priority because of debt serving both foreign and local, then the ministry of works as there will be more constructions. We have heard the governor say there will be another flyover and dualization of bypass road and all the local government headquarters will have an increase of roads for construction, Ishaya Dabari concluded.