Borrowing Attached To Developmental Projects In Order, Says Aduwo

A civil society leader, Comrade Olufemi Aduwo, has said that state governments are constitutionally allowed to borrow, provided such funds are directed toward developmental projects.

Aduwo spoke against the backdrop of a disclosure of the Rivers State debt profile under Governor Siminalayi Fubara.

Aduwo noted that the assertion by an online publication that Governor Fubara increased Rivers State’s debt from N5 billion to N213 billion within a year has been dismissed as a distortion of facts.

According to Aduwo, who has ties with the United Nations and the World Bank, records from the Debt Management Office (DMO) revealed that Rivers State’s domestic debt stood at N389.20 billion as of June 2023. This debt significantly predates Governor Fubara’s administration.

Aduwo emphasised that state governments are constitutionally allowed to borrow, provided such funds are directed toward developmental projects.

He cited Lagos State, Nigeria’s wealthiest state, as a prime example. Despite being the most indebted, Lagos’ resource management and developmental strides justify its borrowing. Similarly, Fubara’s only loan—secured so far-was for the Ring Road project, which is a vital infrastructure initiative designed to boost economic growth and connectivity. The loan is already being serviced, reflecting his commitment to fiscal responsibility.

Speaking further, Aduwo noted that Fubara has faced considerable persecution since taking office, with politically motivated attacks targeting his administration. He criticised the sensationalism of certain media outlets, calling for public discourse to be grounded in accuracy and fairness rather than misinformation.

He urged the media organisations to consult credible institutions such as the DMO, the Central Bank of Nigeria (CBN), and the African Development Bank (AfDB) for clarification on Rivers’ debt profile. Aduwo warned that failing to verify facts risks misleading the public and damaging the credibility of responsible journalism.

In his statement on Monday in Lagos, Aduwo declared that linking Fubara to debts incurred before his tenure was unjust, describing such claims as dishonest and distracting from real developmental challenges. He urged the media to prioritise facts over political undertones and sensationalism, noting that the people of Rivers State deserve transparent and fair reporting.