Akwa Ibom State government has begun moves to block revenue
leakages to resolve the growing liquidity crisis it is facing by
introducing the one account policy.
The state government is also asking the Akwa Ibom State House of
Assembly for approval to restructure its commercial bank loans into
Federal Government bonds and spread them to cover a period of 25 years.
According to Aniekan Umanah, commissioner for information and
communications, the state government approved a single revenue account
for all monies collected by ministries, departments and agencies in the
state.
The decision to operate a single revenue account was to ensure
“effective monitoring and efficient management of monies collected on
behalf of the state government,” he said.
Umanah, who spoke in Uyo, the state capital, said it was part of the
decisions reached at the end of the state executive council meeting, but
did not however disclose the bank in which the state government single
account would be domiciled.
Earlier, the state government has in a letter sent to the state
Assembly sought approval to restructure its commercial bank debts into
Federal Government bonds with tenors of between 15 and 20 years, saying
it would restore fiscal stability.
“In order for Akwa Ibom State to join other states of the federation
and take advantage of this initiative, it becomes necessary for the
state to partner with the Debt Management Office (DMO) of Nigeria and
the Federal Ministry of Finance in this direction to utilise the
benefits,” according to the state.
The governor said in the letter that the reduction in the monthly
debt service burden of the state would free up resources for meeting
other pressing financial obligations of the state government.
According to the governor, the debt service obligation would be done
by the state through the issuance of counter-guarantees in the form of
Irrevocable Standing Payment Orders (ISPOs) on the statutory Federation
Account Committee (FAAC) allocation of the state, saying the
restructuring would enable the state substitute short-term higher cost
bank debts with long-term lower cost debt.
Governor Udom Emmanuel has yet to disclose the total debt stock of
the state government even as he assumed the chairmanship of the Finance
and General Purpose committee.
ANIEFIOK UDONQUAK
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