Peter Obi, former Anambra state governor and LP presidential candidate explains why he saved money for the state at the end of his tenure.
By Emma Ogbuehi
Against the backdrop of insinuations by critics and political opponents on why he left some money in the coffers of Anambra state government at the end of his term as governor while there were many projects to e executed, Labour Party (LP) presidential candidate, has given explanation on his reasons for making the savings.
Obi said that the funds were intended to serve as take-off boards for his successor, Willie Obiano and to execute certain Federal Government projects in the state which his administration did not have the permission to execute by the time he was leaving office.
Obi said: “I saved N48,629,473,469 in local currency some of which we tied to specific projects like payment of two-year salary of civil servants we employed for him not to be encumbered, Agulu and Onitsha Hotel, Awka and Nnewi Malls and some critical roads like the completion of the dualization of the Dual carriage road over which we had got permission to do so and be paid back by the Federal Government. We also left some for him to continue what we were doing aggressively”.
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On the US$156 million (about N27 billion at that time and about N75 billion today when the yields are added), Obi explained the purpose thus: “After our study of the Chinese phenomenal achievements as we were coming to the end of MDGs, we learned that the Chinese Regional governments were able to attract a number of investments because of the ability to contribute or partner with the investors in setting up productive facilities within their regions. For example, some of them effectively made equity contributions of 10-20%, which they were able to achieve due to their robust saving.
“So, our calculation was that if the state would be able to save a particular amount (US$18-20 million) as we did in eight years, up until 2030 at the average interest rate of a little over 6%, we would be able to achieve about a billion Dollars in savings and earnings. We would then use about 50% of this amount to attract investments, considering that the average Chinese Small and Medium Scale Enterprise (SME), for example, was set up with about two million dollars. Our goal was that if we would be able to invest 25% in each enterprise, which is $500,000, we would be able to achieve 1000 SMEs facilities scattered all over AnambraState, which would jump-start aggressive economic growth within the State, especially as income from oil is coming to an end”.
Obi’s explanation comes on the heels of remarks by the current governor of the State, Charles Soludo, in which he dismissed investments by his predecessor as amounting to nothing in the context of present realities.
Soludo stated this on Thursday during an interview with Channels TV’s Politics Today.
The Anambra governor spoke when asked about his perspective on the investment of government outside the public sector with reference to Obi as a former governor.
He said, “I don’t know about the investment. Our interview is about the 2023 budget. I’m not talking about the investments of any of my predecessors. By the way, the one that you talked about I don’t know about that.
“I think there was something I read about somebody speculating about whatever investment. With what I’ve seen today, the value of those investments is worth next to nothing. So, let’s leave that aside.”
Soludo’s remarks came after he presented the N258.97bn 2023 budget to the state House of Assembly in Awka. The budget which was christened -the budget of acceleration- noted a raise from the N170bn revised 2022 budget presented by the governor in May.