‘OWE NO MAN NOTHING’

 Delta State government is resolved to break the yoke of debts, writes GEORGE ETAKIBUEBU

 The good book advises believers against debts. It says “owe no man nothing.” For emphasis, it describes a borrower as a slave or servant to the lender. This, however, is without prejudice to economic and political sound bites that tend to justify debts and borrowing provided such debts are judiciously applied. But for Delta State Governor, Rt Hon Sheriff Oborevwori, his position is clearly in favour of the Biblical injunction. He must have resolved, and uncompromisingly so, to break the yoke of indebtedness by Delta State.  

For a man not given to blowing his own trumpet, not much was heard about Governor Oborevvwori’s silent but bold move against the debt overhang in the state in the last two years that he has been in the saddle. We, however, know that he has not borrowed a farthing even when legacy projects dot the nooks and crannies of the state.  

But the policy of keeping sealed lips ended in early January 2025, when the Commissioner for Works (Rural and Riverine Roads) and Supervising Commissioner for Information, Mr Charles Aniagwu, revealed that Governor Oborevwori had paid over N200 billion debts owed by the state since his assumption of office. Speaking with newsmen in Asaba at his maiden meeting with the media after he was directed by the governor to oversee the information ministry where he once held sway during the Okowa administration, Aniagwu said that the move had significantly reduced the state’s debt portfolio.

“Over N200 billion has been paid to liquidate the state’s debt stock while contractors are being mobilised with new jobs with outstanding job certificates paid as they fall due,” he said, stressing the fiscal discipline and efficient resource allocation under Oborevwori’s watch.

By May, official data from the Debt Management Office (DMO) provided clarity on the status of indebtedness by Delta State. From an intimidating sum of N465 billion, Delta State’s debt profile has now dropped to N199.575 billion, thus making it the biggest debt reduction among the 36 states of the federation. What that translates into is that under the watch of Governor Oborevwori in 24 months, the state has repaid N265.425 billion. And that means over 50 per cent has been paid with only about 42.79 percent of the debt now left.

Inheriting N465 billion and offsetting more than N265 billion of that amount is an eloquent testimony to Oborevwori’s fiscal discipline and financial engineering prowess. Of course, the argument by critics has been that revenue of the state has tripled because of the policy of the removal of fuel subsidy and a deregulated exchange rate, but they have forgotten that so also has been the cost of contracts gone up and the minimum wage that is now above N70,000 and most importantly his refusal to obtain fresh loans while still executing many capital projects.

 The question is what could be the driving force behind Governor Oborevwori’s uncompromising decision that has now made headlines? Undoubtedly, this remarkable achievement is not merely a financial maneuver; it is deeply rooted in economic, social, and political considerations that reflect the governor’s commitment to sustainable governance and the welfare of the people of Delta State.

The plausible economic rationale behind Governor Oborevwori’s aggressive debt repayment strategy is multifaceted. First and foremost, reducing debt levels enhances the state’s creditworthiness. By paying off a significant portion of its debt, Delta State positions itself as a more attractive destination for investors. A lower debt burden signals fiscal responsibility, which can lead to increased investment in infrastructure, education, and healthcare—key areas that drive economic growth.

Moreover, the reduction of debt alleviates the financial strain on the state’s budget. With less money allocated to servicing debt, more funds can be redirected towards developmental projects and social services. This shift not only stimulates economic activity but also improves the quality of life for residents. The governor’s focus on debt reduction is also a strategic move to ensure that Delta State can weather economic downturns more effectively, providing a buffer against potential financial crises.

Socially, the implications of reducing the state’s debt are profound. High levels of debt often lead to austerity measures, which can adversely affect public services and social welfare programs. By prioritizing debt repayment, Governor Oborevwori is signaling a commitment to improving the living standards of Delta State residents. This approach fosters public trust and confidence in the government, as citizens can see tangible benefits from fiscal prudence.

Additionally, the governor’s strategy aligns with the broader MORE agenda and the goal of poverty alleviation. By freeing up resources that would otherwise go towards debt servicing, the state can invest in social programs aimed at education, healthcare, and job creation. These investments are crucial for empowering the populace and reducing inequality, ultimately leading to a more stable and prosperous society.

And politically, the decision to aggressively pay down debt can be seen as a strategic move to solidify Governor Oborevwori’s position and legacy. In a political landscape where public perception is paramount, demonstrating fiscal responsibility can enhance a leader’s credibility. By taking decisive action to reduce debt, the governor is not only addressing immediate financial concerns but also laying the groundwork for long-term political stability.

Furthermore, the governor’s actions resonate well with the electorate, particularly in a state where economic challenges have historically led to discontent. By prioritizing debt repayment, Oborevwori is effectively addressing a critical concern for many citizens—financial stability. This can translate into political capital, as voters are likely to support a leader who is perceived as capable of managing the state’s finances effectively.

 Additionally, the governor’s focus on debt reduction can be viewed as a means to foster unity and collaboration among various political factions within the state. By demonstrating a commitment to the common good, he can bridge divides and build a coalition of support that transcends partisan lines. This is particularly important in a diverse state like Delta, where different ethnic and political groups may have varying interests.

In conclusion, Governor Oborevwori’s decision to reduce Delta State’s debt by 50% within two years is a strategic move driven by economic, social, and political imperatives. Economically, it enhances the state’s creditworthiness and allows for greater investment in public services. Socially, it improves the quality of life for residents and fosters public trust. Politically, it solidifies the governor’s position and builds a coalition of support. As Delta State continues to navigate its challenges, this bold fiscal strategy may well serve as a blueprint for sustainable governance and development in the years to come.

Etakibuebu writes from Lagos