How Gov. Sheriff Oborevwori is Putting Delta State on a Fiscal Sustainable Path – By Paul Odili

By Paul Odili

The recent report of paying down the legacy debt from N463 billion to N63 billion is a commendable feat of financal prudence by Gov. Sheriff Oborevwori’s administration in three years.
I don’t know how many states in Nigeria have been able to achieve such level of fiscal success, amidst infrastructure transformation of their states? Perhaps they have, I don’t know, but Delta state has announced theirs and this is a cause for big cheers.
Sadly, for such a big accomplishments that should elicit universal commendation, I have seen some uninformed criticisms by some people, linking this feat to attempt by the current administration to cover up the tracks of previous administrations’ financial management records. This is a cheap attack and should be disregard.
When I read this negative reaction I began to wonder how some people actually reason. I struggle to see the logic. Why conflate two completely unrelated things? To make this observation brief- what current Delta administration has done is to complete payment for services contracted by precdeding administrations’ which might even be accruing interest and by this payments removes such debts from its books. Which in turn automatically lowers its debt servicing cost.
Secondly, when you pay your debts to businesses for services rendered you enable them to grow and expand. And these businesses could be banks, contractors/ vendors, etc. And because you have paid, they thrive, grow and expand- and with growth and expansion employment is created, more taxes are paid, and more investments are attracted. In short payment of debts have good multiplier effect and hence a net positive.
By placing Delta on fiscal sustainability as the Oborevwori administration is doing, it is able to invest more in every other areas : infrastructure, human capital and security. The government is able to pay workers competitive wages, it has space to invest in its growth, it is seen by the outside world as a well managed and a viable state.
With such a scenario, Delta state now has a lower Debt to GDP ratio is able to envision, attract and invest in higher quality public infrastructure investment with great clarity. Furthermore, let us not forget Delta state and indeed Nigeria depends a great deal on volatile product like Oil for much of its public revenue is unpredictable, which means the less it is under debt distress the more with the right vision it can direct investments to areas that can cushion it against any revenue shocks in future.
Having said the foregoing, it is obvious criticism of Governor Oborevwori over this decision is born out of fear- fear that if Deltans understand what transformative impact this decision might have will be recorded on the positive side of the ledger of success of his administration. This is disinformation influenced by 2027 transition politics.
But Deltans are not fooled. They know a good thing when it happens and this is a good thing indeed. And the Governor Oborevwori administration should be celebrated for this.