Why Delta’s Debt Profile Is Low, By Obiago


BY ANDREW IKEHI
THE listing of Delta State as one of the least indebted states in the country by the Debt Management Office (DMO) has been attributed to the prudent management of resources in the state by the Governor Emmanuel Uduaghan’s administration.
The Economic Adviser to the state Governor, Ogbueshi Afam Obiago who stated this yesterday during a telephone interview with The POINTER said the listing will no doubt, add succour and a boost to the incoming administration in the state.
Obiago, in the interview, posited that given the fact that the state government has under-borrowed as indicated in the DMO report, it gives it a boost as potential partners to investors both at the local and international cadre.
His words: “It is a good thing that they (DMO) released the debt profile because, when we are talking about prudent management of resources, people do not seem to understand, the figure has now proved us right”.
“It also shows that because we have under-borrowed, we are potential partners to investors both locally and internationally, because it shows that we have resources at our disposal not hindered by borrowing”.
“However, do not forget that there is always a limit to borrowing; your borrowing must not be more than 50 per cent of your Gross Domestic Product (GDP).
“Again, you should not forget that government is like business; all businesses borrow, but it is the extent of your borrowing that matters”, Obiago said.
It would be recalled that the Debt Management Office (DMO) recently released a statement on the debt profile of states in the country, listing Delta State as one of the least indebted states.
The statement reports that using the DMO’s external debt figure without adding domestic debt, Delta is one of the states in the country with little exposure to multilateral and bilateral loans.

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