USAID S2S takes Ebonyi debt management on debt reconciliation

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By Ruth Oginyi

Ebonyi State government has commenced its internal and external debt profile reconciliation.

USAID Nigeria State Accountability, Transparency and Effectiveness (State2State) activity sponsored the training of the debt management officers on the reconciliation processes.

The USAID S2S engagement with the finance officers and debt management department of the state, will also enable them to produce a debt reconciliation template that will be used henceforth to reconcile the state debt.

The activity according to an expert would enable the state to know Its debt profile both foreign and domestic debt and when federal government should stop deduction from the state allocation.

Hajiya Hannatu Bint Musa, a public debt management consultant and retired director from the debt management office Nigeria who is a resource person explained that the exercise is where a reliable complete debt data is expected at the end of the training, that will be useful to the state in terms of future debt service payment , future borrowing and in financial analysis.

Hajiya Hannatu noted that the debt reconciliation is part of transparency and accountability because it can be used for further analysis in the state.

Speaking Dr. Leonard Uguru commissioner for finance and economic development Ebonyi State said with the debt reconciliation, the state would be able to know when federal government should stop deduction of fund from the state government account and such would boost the economy of the state and provide good governance for the masses.

Uguru former Chairman of ICAN in the state said, “We are here for public debt reconciliation and the essence is to know the exact amount the state is owing both in foreign and domestic debt because since we came into govt by may 29 last year we found out that the state debt has never been reconciled for years and it is always necessary for you to know the exact amount you are owning to know when federal government will stop deducting from your account.

“You need to reconcile this debt to know if what you have in your file is what the debt management office in Abuja has that is the essence of the reconciliation.

“ It is a very good one because it will assist Ebonyi State in many things and even in having the documents for our debts because some of them we don’t even have the subsidiary loan agreements (SLAs ) but with what we are doing now the one that are not available in our debt management department we can get it from debt management in Abuja so that we built our data base so that when there is over deduction we will know when there is under deduction we know.

“With the reconciliation the state economy will grow because if there was over deduction before now we will stop it and which means more money will be coming to the state government to use and provide good governance for the people. It bring economic development if at the end the debts are reconciled and the actual debt we are supposed to pay is what we are paying. He said.

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