Each Akwa Ibomite Owes N33,665 as State Debt Burden Hits N233.61 billion
…Seven in 10 Akwa Ibom Population multidimensionally poor- Nigeria Poverty Map
By Ekemini Simon
Analysis of Akwa Ibom State Public Debt Stock as released by the Debt Management Office and National Bureau of Statistics, has shown that each Akwa Ibomite currently owes N33,665 in terms of debt per capita.
Data from Debt Management Office and National Bureau of Statistics shows that the domestic debt of Akwa Ibom State as at June 30, 2023 stands at N199,580,487,851while Foreign Debt stands at $43,543,332.
As at October 2, 2023, the official rate of a Dollar to naira is N781.4. Converting $43,543,332 to naira keeps the Foreign Debt of Akwa Ibom State at N34,024,759,624.8.
Both Domestic and Foreign Debt of Akwa Ibom State totals N233,605,247,475.
TheMail Newspaper calculated the debt stock per Capita by dividing the total debt stock (Domestic and Foreign) by the State’s population.
According to the latest Nigeria’s population data source, the Nigeria Poverty Map , the population of Akwa Ibom State as at 2022 is 6,939,000. With the division of the total debt stock by the population of the State, each Akwa Ibomite owes N33,665.
Meanwhile, according to the multidimensional poverty index (2022) as reported by Nigeria Poverty Map, in Akwa Ibom State, 7 in 10 (71.3 percent ) of people in Akwa Ibom State – 5 million are multidimensionally poor.
The report notes that a significant proportion of these poor populations are deprived of food security, healthcare and access to cooking fuel.
Analysis of the poverty index data shows that if each Akwa Ibomite were to be mandated to settle the debt due them, over 70 percent would not be able to afford it.
Analysis of the data by Debt Management Office and National Bureau of Statistics shows that Akwa Ibom State stands as seventh most indebted State in the country and fifth in Niger Delta on domestic debt.
Analysis of the 2022 financial statements of Akwa Ibom State published by the Accountant General of Akwa Ibom State points to where the bulk of Akwa Ibom State domestic debt burden comes from.
Data from the financial statements shows that as at December 31, 2022, the State is indebted to the Federal Government and commercial bank to the tune of N147.5bn.
Debt owed the Federal Government comes from Federal Bonds and Federal Government Budget Facility amounting to N73.26bn.
Other debts which are from commercial bank loans are CBN ECA- Zenith Bank N5.49bn, Zenith AADS loan N358.3m, CBN Micro, Small and Medium Enterprises Development Fund loan N1.7bn, Zenith-VKS Coconut loan – N2.37bn, Zenith VKS Storey loan N2.37bn, Zenith Bank CCECC – Eket -Etinan loan N954.7m and Zenith-Wizchino Ndo Eyo loan N1.43bn.
Others are Zenith -Akwa Ibom State Government loan for Julius Berger – N4.78bn, Zenith- Akwa Ibom State Internal Revenue Service loan N6.61bn, Federal Government Bridging Facility N18.04bn, Zenith Bank -MIMSHAC N3.3bn, Federal Government Family Home loan N5bn, Zenith Bank 2020 Universal Basic Education loan N248.5m, Zenith Bank- Ibom Air 10bn loan N8.6bn, and Zenith-Hensek loan N8.21bn.
Other liabilities reported in the financial statements include employee benefits amounting to N46.84bn. The breakdown shows that N34.17bn is owed as Gratuities for Civil Servants, N2.34bn owed as Pension for Civil Servants, and Estimates of future pension not yet due N10.33bn.