Umo Eno: Steering Akwa Ibom State’s economy without borrowing

Emmanuel Nicholas

The responsibilities of a state leader extend far beyond merely securing electoral victory; they encompass a profound commitment to acquiring the necessary knowledge and skills to effectively manage public resources and to implement projects that prioritize the needs and well-being of the people.

A prudent leader must possess the discernment to recognize the appropriate moments to curtail expenditures during periods of scarcity.

They should also prioritize investments that promise substantial returns, while actively seeking innovative strategies to rejuvenate the local economy.

This approach is essential for maximizing the benefits derived from internally generated revenue, thereby ensuring a more robust financial foundation for the state.

In Nigeria, the nation grapples with daunting economic challenges, as evidenced by a dramatic decline in life expectancy, which has plummeted to nearly 75%, alongside an alarming inflation rate that has surged to an unprecedented 57%.

These factors significantly complicate both the cost of governance and the general cost of living for the populace.

Presently, many states within Nigeria find themselves in a precarious position, relying heavily on loans to finance the development of their infrastructure.

This reliance is compounded by the stark reality that their internally generated revenue, coupled with federal allocations, is often insufficient to cover even the salaries of state employees.

As a result, the financial sustainability of these states hangs in a delicate balance, necessitating astute leadership and strategic planning to navigate these turbulent economic waters.

In Nigeria, there exists a Governor who takes a notably prudent approach to financial management, consciously steering clear of excessive borrowing. Rather than succumbing to the temptations of debt, he demonstrates a commendable ability to manage the State’s resources with remarkable wisdom and care.

His meticulous oversight ensures that workers are compensated promptly, fostering a sense of stability and trust within the workforce.

Over approximately one year and seven months, he has successfully settled gratuities that amount to an impressive 37.6 billion Naira, reflecting his commitment to honouring the financial obligations owed to those who have served the State.

Furthermore, he has made significant investments in the development of road infrastructure, allocating a substantial sum of 253 billion Naira to construct and expand the transportation network, thereby facilitating better connectivity and economic growth.

In addition to these commendable efforts, the Governor has also directed over 100 billion Naira towards the acquisition of additional aircraft for Ibom Air, thereby bolstering the State’s aviation capabilities and enhancing its connectivity to other sub-regions in Africa.

Moreover, he has invested in real estate ventures in major urban centers such as Lagos and Abuja, thereby diversifying the State’s investment portfolio and contributing to its overall economic development.

Through these actions, the Governor exemplifies a forward-thinking and responsible approach to governance, prioritizing the welfare of his constituents while strategically advancing the State’s economic interests without obtaining loans.

Governor Umo Eno represents a standard leader whose ideology centers on effective economic planning instead of extravagant living. He strives to bridge economic disparities and minimize excess luxuries, making sure that resources back projects that benefit the masses.

His Arise Agenda serves as a meticulously designed blueprint that articulates his comprehensive economic strategies and the essential frameworks for their implementation.

This agenda places a strong emphasis on the reduction of costs while simultaneously ensuring that the allocation of financial resources is strategically directed towards various sectors.

The distribution of these funds is determined by the economic significance of each sector and the specific areas of investment related to projects aimed at fostering a more robust and improved economy.

Many financial institutions, both international and local, have offered loan facilities to the State to aid in reinvesting in the local economy.

However, Governor Umo Eno opts to utilize available resources instead of accumulating more debt for the State.

Governor Umo Eno has decided to set the minimum wage above the federal government’s benchmark. The central government set a cap of N70,000 Naira, but the State leader, aware of the significant difficulties experienced by the masses, increased the state’s minimum wage to N80,000 Naira.

To rejig the economy and earn more internally generated revenue, Governor Umo Eno has empowered more than ten thousand entrepreneurs through different initiatives.

The Governor allocated N500,000 to 800 entrepreneurs and provided N250,000 to more than 1000 entrepreneurs through the Ibom-led programme.

The Ibom LED Entrepreneurship Accelerator Programme aims to assist and develop entrepreneurs by enhancing their business management skills and fostering sustainable growth.

The programme welcomes both current and future entrepreneurs. It equips them with essential training, guidance, and financial support to turn their ideas into thriving businesses.

The programme provides a range of training sessions, workshops, and seminars aimed at enhancing key entrepreneurial skills. These abilities may encompass business planning, financial oversight, marketing tactics, and presentation skills.

The Governor of Akwa Ibom State, in collaboration with the Bank of Industry, has made three billion Naira available for small-scale industrialists to access.
The organization will provide these business owners with a zero-interest loan to help them expand their businesses.

The State Government has also provided N3 billion in grants to verified traders with shops through Akwa Savings and Loans Limited and has also allocated N250 million Naira each to Arewa, Igbo, and Niger Delta entrepreneurs residing in Akwa Ibom State.

The Akwa Ibom State Government is executing these initiatives to boost the local economy and expand the state’s tax base while making sure the state avoids pursuing loan options to develop infrastructure.

Borrowing money to invest in the economy can be beneficial, but it should focus on projects that directly benefit people and generate profits. Raising the state’s loan burden could damage the state economy, as higher loans require more funding to manage them.

The Governor of Akwa Ibom State is acutely aware that accumulating excessive debt can lead to a substantial financial burden that poses considerable challenges for the government.

Such a situation complicates the administration’s capacity to meet its obligations in repaying the loans incurred, thereby potentially jeopardizing the state’s financial stability and future fiscal health.
These loans usually carry high interest rates, which means a large part of the budget goes to paying interest.

Governor Umo Eno has set forth an ambitious agenda with a primary goal of mitigating the burdensome costs associated with servicing debt, which can often lead to the unfortunate necessity of cutting funding for non-essential programmes.

Instead, he intends to prioritize and direct financial resources towards critical sectors such as healthcare, education, rural development, tourism, agricultural advancement, and the cultivation of entrepreneurship.

More so, he is committed to the construction and enhancement of economically viable infrastructure. Through this strategic allocation of funds, Governor Eno aims to foster sustainable growth and improve the overall well-being of the State.

The administration under Governor Umo Eno may have the opportunity to acquire loans in the forthcoming period, which could serve as vital financial resources for ambitious and costly projects poised to significantly alter the economic landscape of the state.

Among the various initiatives that could be financed through such loans are the development of the Ibom Deep Sea Port, the completion of Maintenance, Repair, and Overhaul (MRO) facilities, investments in real estate, and other ventures that require substantial capital.

These loans must be strategically linked to projects that possess the capacity to generate sufficient revenue over time to ensure their repayment, while also yielding profitable returns for the state.

Alternatively, these financial resources should be allocated towards initiatives aimed at enhancing the quality of life for the residents, ultimately contributing to the overall welfare of the population.

Governor Umo Eno: Steering Akwa Ibom State’s economy without incurring debt by borrowing” presents a forward-thinking approach to economic management that prioritizes fiscal responsibility and sustainability.

By focusing on innovative strategies to harness local resources, enhance revenue generation, and promote economic diversification, Umo Eno’s leadership aims to create a resilient economy that can thrive without the burdens of debt.

This model not only sets a precedent for effective governance in Akwa Ibom State but also serves as a potential blueprint for other States seeking to balance development with financial prudence.

By Governor embracing these principles, the state has paved the way for long-term growth and stability, ultimately benefiting its residents and enhancing a prosperous future.