Infrastructure funding is a prerequisite for expanding the economy and lifting people out of poverty, and for any government to embark on industrialization, it must make plans for these expenditures in its annual budget. But when a country’s spending plan exceeds its revenue, it results into borrowing either from domestic or external sources to finance critical infrastructure projects contained in its budget, a move when pursued diligently could shore up its economy and create jobs.

Domestic debts are funds sourced from borrowers within the country, while external debts are foreign obligations payable to lenders outside the country. Although it is worrisome for a country’s debt to continue rising, it is more worrisome when the amount spent to service debt accounts for greater proportion of revenue. In Nigeria, not only is debt service taking a bigger chunk of the nation’s revenue, the size continues to increase as revenue maintains a downward spiral further undermining Nigeria’s capacity to pay off its obligations.

A searchlight beam into Ondo state debt portfolio shows the state is Nigeria’s least indebted state in the south-west sub region and eighth across the country having recorded a total domestic debt of N56.96 billion as at March 31, 2019, according to the latest state debt data obtained from the Debt Management Office (DMO). This places the state among Nigerian states with the lightest debt burden. Ondo ranked eighth least indebted state in the country, leading 29 others in the federation including the Federal Capital Territory, Abuja.

Ondo state government under the leadership of Arakunrin Oluwarotimi Akeredolu SAN, has rewritten the economic history of the state for good through industrialization and partnership with foreign investors who are expertise in converting raw materials into finished products.

While debt is tamed at one end, Internally Generated Revenue (IGR) is being grown aggressively at the other, making the state financially stable and boosting domestic investment.

Ondo state significantly increased revenue generated within the state from N8.68 billion in 2016 to N10.93 billion in 2017 and N24.79 billion in 2018. The low IGR in 2016 suggests that the state could hardly cover her recurrent expenses and at such was unable to pay up her expenses and workers’ salaries. During this period, the only option left for Ondo state was to borrow. In 2015, the state borrowed $50.2m and $49.53m in 2016.

According to National Bureau of Statistics, Akeredolu’s led administration with the tremendous increase on the state IGR, Ondo state becomes the only state in the Southwest Nigeria that made progress in the unemployment rate statistics between July to September 2018 compared with the same period a year earlier.

The unemployment rate in Ondo state dropped in the third quarter (Q3) of 2018 to 14.2%. This represents 1.17 percentage points lower when compared with 15.4% recorded in the corresponding period of 2017. Ondo state is rated among the 9 states of the federation that were able to curtail unemployment in the review period even when the economic index worsened in twenty-eight states including the federal capital territory.

Further data analysis by the nation’s statistics bureau show that Ondo state added 122,708 fresh job within the one-year period under review, boosting the number of employed persons, which comprises those engaged in full-time jobs and the underemployed, in the state from 2.02 million in Q3 2017 to 2.14 million.

The unbridled desire of the Ondo state governor towards boosting the state economy through industrialization and Agriculture has really paid off in the state economic growth and employment rate. As one of the established industries, Wee-Wood Afforestation company from China, inclined in combating desertification, encroachment and Land degradation, has presently, employed 1000 youths at Wee-Wood Nigeria, Limited Omotosho in Odigbo Local Government Area of Ondo State. which speak loud in the State

While on the other hand, Ondo-Linyi Industrial Hub, wood processing, Cassava- Ethanol Plant and textile company situated in Ore is said to generate 20, 000 job opportunities in no distant time. Also to encourage farmers, Ondo-Linyi buys Cassava proceedings from local farmers in Ondo state which invariably increases the farmer’s standard of living as well as generating more funds for the Ondo state government.

Genevieve Alozie
TCC NEWS

Wow!! Governor Akeredolu led-administration is really making something out of nothing for the good people of Ondo State.