Ortom hands over N187 m debts to Governor Alia
The outgoing Governor of Benue State, Samuel Ortom has handed over N187.56bn debts to his successor. This is inclusive of salary and pension arrears, loans and bonds as well as outstanding contractual obligations.
This was contained in the handover notes of Ortom's eight years administration which he presented to the new Governor, Rev. Fr. Hyacinth Alia at a brief ceremony on Sunday, May 28th, 2023 at the old Banquet Hall of Benue Peoples House, Makurdi.
He said the handover notes, which are three volumes, contain sectoral briefs as well as briefs on all the Ministries, Departments and Agencies (MDAs) of the State Civil Service and briefs on the key programmes that were implemented by his administration
Ortom said: "Your Excellency, although the handover notes I am signing with you today encapsulate the essentials of my administration’s eight years in office, I consider it pertinent to give highlights on income, expenditure, debt profile and pension within the timespan of my administration.
"The total income that accrued to the State within the tenure of my administration from all sources (Statutory income, Value Added Tax, Internally Generated Revenue, other FAAC incomes including Grants, refunds, and loans) was N734.96bn as at 30th April, 2023.
"The total expenditure on both recurrent items (salary/wages, pension and gratuity, overhead or cost of running government services, loan service obligations, refunds/remittances to Local Government Councils) and capital expenditure amounted to N735.6bn as at 30th April 2023.
"The total indebtedness of the Benue State Government at this time of the exit of my administration from office is N187.56bn. This is inclusive of salary and pension arrears, loans and bonds as well as outstanding contractual obligations," Governor Ortom stated.
Governor explained that his administration has taken proactive steps to negotiate and ensure significant debt reduction/reliefs for the state.
He gave the breakdown as a total debt swap between the Federal Government and State Government to the tune of N71.6bn.
According to the Governor, the inflows being expected were a backlog of accumulated Stamp Duties of N48bn, refund from debt swap with the Federal Government to the tune of N22.95bn, amounting to N70.95bn.
He emphasised that "by the time you discount or factor in the negotiated debt swap and the expected inflows, the State would attain a debt reduction, bringing down the State’s debt profile to N45.2bn
"In addition, Benue State has outstanding approvals awaiting disbursement from the Federal Government including: balance of bailout N41bn, CBN facilities (referred to as Central Bank of Nigeria DCRR) of N20bn."
He further explained that his administration had introduced pension reforms stating that over N8bn has been raised under the Contributory Pension Scheme.
While congratulating the incoming Governor, Ortom advised him that after he would be sworn-in and formed his cabinet, he could invite Permanent Secretaries and Chief Executive Officers of MDAs to brief him and his team and thus throw additional light on their submissions/briefs as contained in the handover notes.
In a brief response, the incoming Governor, Rev. Fr. Hyacinth Alia expressed appreciation to Governor Ortom for his service to fatherland in the state and for the handover notes he presented to him.
Governor Ortom and incoming Governor, Fr. Alia later appended their signatures to handover notes.