Alex Otti
EKO HOT BLOG reports that former Governor of Abia State, Okezie Ikpeazu, has refuted claims made by his successor, Alex Otti, regarding the existence of debts left behind by his administration.
Ikpeazu dismissed Otti’s assertion that there were no cash or assets left for the new administration, affirming that he left N6 billion in the state government’s coffers and was not indebted to any commercial bank during his tenure.
Challenging Otti’s statement, Ikpeazu clarified that his administration left a substantial sum of N6 billion available in the state’s treasury, in addition to investments and development projects. He highlighted the successful negotiation of a $50 million World Bank facility, secured at an interest rate of 0.06% and featuring a 10-year repayment moratorium.
This financial aid was specifically earmarked for the construction of over 500 kilometers of roads, including the rehabilitation of the dilapidated Port Harcourt Road in Aba.
Through a statement released by his media aide, Ikechukwu Iroha, Ikpeazu emphasized the significant investments made during his tenure. He mentioned that Abia State, under his leadership, invested $5 million in Geometric Power Company, highlighting it as a near-cash asset.
Furthermore, Ikpeazu noted that the state received N24 billion through the Nigeria Governors’ Forum as part of a total of N48 billion credited to the state’s account as of June 9, 2023. This suggests that the new administration has access to substantial funds for critical road construction projects, without the need for repayment during their tenure, assuming it spans eight years.
The former governor also highlighted the availability of a $200 million African Development Bank facility, which his administration had processed and made ready for the new administration to utilize for the construction of rural roads.
To counter Otti’s claims of debts left behind, Ikpeazu clarified that before his exit from office, the Abia State Government and the office of the accountant general of the federation had reconciled their accounts, revealing a credit balance of N6 billion for the state.
This indicates that rather than being indebted to the federal government, it was the federal government that owed the state. Thus, the current administration has access to the additional funds of N6 billion.
While awaiting a detailed breakdown of the alleged debts claimed by the new administration, Ikpeazu stated that they likely consist of long-term development facilities, contractor debts, and possibly outstanding payments to pensioners and salary earners. He expressed confidence that the new administration can effectively manage these liabilities with the available resources without the need for undue alarm.
As the claims and counterclaims continue to unfold, Abia State prepares for a smooth transition to the new administration, with the spotlight now on the management of finances and the successful execution of critical developmental projects.
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