Servicing Of N347.75bn Debt Retarding Akwa Ibom’s Progress

A coalition of civil society organisations (CSOs) under the auspices of Tax Justice and Governance Platform (TJGP) has raised an alarm that recurrent servicing of huge debts incurred over the years by successive governments in Akwa Ibom State has heavily impacted negatively on the development index of the state in the last couple of years.

Findings from the Debt Management Office (DMO) revealed that the state debt profile has astronomically risen from N215.99 billion in 2019 to an alarming N347.75 billion presently, noting that such incessant leap in borrowings and the concomitant servicing, has hamstrung the Governor Umo Eno-led administration’s development plans for the state in the last eight months.
Addressing a press conference at the weekend in Uyo, the state capital, chairman of the coalition, Comrade Harry Udoh, tasked the administration to identify key priority areas of investment in order to create meaningful impacts on the citizenry as the economic crunch bites harder.

“The burgeoning debt of the state poses grave implementations for tax justice. Heightened debt burden may spur regressive tax policies disproportionately affecting low-income residents and exacerbating socio-economic disparities. Moreover, opacity in financial management jeopardises public trust in government stewardship.
“The escalating debt has adverse ramifications for public service delivery in education, healthcare, water and sanitation. As debt servicing claims a larger share of resources, funding for essential services diminishes, threatening the well-being of vulnerable groups and hindering social developments.
“It also hampers entrepreneurship and economic advancement. Prioritising debt-servicing over crucial investments stifles innovation and job creation, fostering economic stagnation and perpetuating cycles of poverty,” he stated.

To mitigate the adverse socio-economic situation in the state, the forum advocated for tax nest expansion, efficient tax administration and more investments in critical sectors – education, health and other infrastructures.