Clarity on Bailout and Paris Club Fund Conundrum: Ending the Opposition’s Last Straw by Obinna Oriaku
Between 2015 and 2017, Nigeria went through one of its toughest economic periods. Crude oil, the country’s main source of revenue, dropped to as low as 28 to 30 dollars per barrel, while daily production fell to about 1.3 million barrels. Non-oil exports were almost non-existent, and many states struggled to pay salaries and pensions.
To cushion the effect of the recession, the Federal Government under President Muhammadu Buhari introduced a bailout programme to help states meet their obligations. About 28 states were in dire need of help at the time. The Federal Government secured the loan on behalf of the states at an interest rate of three percent, to be repaid over a twelve-year period. The repayment of that facility is still ongoing today.
Abia State received ten billion naira, just like most other states. Realising that the amount was not enough to clear all outstanding arrears, we held a meeting on how best to manage the funds. I suggested that a committee should be set up to oversee the disbursement. Governor Okezie Ikpeazu, in his usual inclusive style, accepted the idea and directed that the labour unions should nominate members for the committee.
The committee was chaired by the late Mr. Obigwe, who was then the Chairman of the Nigeria Labour Congress (NLC). However, I soon noticed intense lobbying from people who wanted to be included in the committee. When I asked why, I was told that such committees usually attracted allowances like sitting, transport, or standing fees.
I immediately made it clear that not a single kobo from the bailout fund would be spent on committee allowances. Instead, I assured them that the Governor would appreciate the committee at the end of the exercise if they managed the process well.
All major labour bodies under the NLC were represented.
1.) Late Mr. Obigwe – NLC (Chairman)
2.) Mr. Okoro – Joint Negotiating Council
3.) Mr. Akparanta – NUT Chairman
4.) Mr. Ijeoma – NULGE Chairman (now a Labour Party chieftain)
5.) Mr. Nwaokocha – Office of the Accountant General
6.) Mr. Nnanna Udensi – Permanent Secretary, Ministry of Finance
7.) Dame Charity Ukonu – Salary Management Committee
8.) Late Mr. C. N. Udensi – Chairman Pensioners Association
9.) Mr. Julius Ikpe – Pensioners’ Representative (still alive by God’s grace)
The funds were presented to this committee and disbursed to the very last kobo. A balance of about (100b( One hundred million Naira was later transferred to the Abia State Pension Board, led by Mrs. Patience Oji, and used for the payment of few gratuities.
The Ten billion naira(N10b) bailout was handled with full transparency by the committee members listed above, many of whom are still alive today, including some who now belong to the Labour Party.
However, between then and now is striking. During Ikpeazu’s administration, workers and their unions were fully informed whenever federal interventions arrived, and they participated in deciding how the funds were used.
Today in Abia State, that is no longer the case. Workers are unaware of when federal funds are received, and labour leaders are shut out of the process. The funds meant for CNG buses, agricultural support, flood relief, recreational facility, farm seedlings,LNG dividends are either denied, hidden, or quietly diverted. The once vibrant labour unions in Abia have been reduced to silence, even as over (10,000.00)Ten thousand workers have lost their jobs without any legitimate justification.
It is disappointing that even after seeing other states pay gratuities from similar interventions, Abia’s labour unions have neither demanded accountability nor defended the rights of those sacked workers.
At the end of the bailout disbursement, the committee received Ten million naira (10m) as a token of appreciation from the government. That act of goodwill was later twisted into a subject of investigation by the EFCC in Port Harcourt, following petitions from political rivals.
The Ten million naira cheque was issued in my name and paid into my First Bank account. From there, individual cheques were written for each committee representative. No one received cash payments. To me, that remains a perfect example of 100 percent transparency.
Seven years after leaving office, it is surprising that some people still use the bailout narrative as their only weapon of attack. This detailed account should put those unfounded claims to rest once and for all.
It is important to note that Abia State was officially recognised as the best-performing state in the management and disbursement of bailout funds. The Nigeria Governors Forum investigated and confirmed that Abia used its funds to pay salaries and pensions, unlike many other states that diverted theirs to pay contractors.
Dr. Ikpeazu’s then deputy, Rt. Hon. Udo Oko Chukwu, who now belongs to the Labour Party, represented the state to receive the award. He can confirm this fact beyond any doubt.
Rather than recycling old and baseless bailout stories, the current Abia State Government should focus on cleaning up its own record. The level of financial recklessness, hidden transactions, and poor accountability now associated with this administration is shameful.
A government that claims to have spent thirty-five billion naira on “Research and Development” and eighty-two billion naira on “repairs” of nonexistent public schools should not be preaching transparency.
Dr. Okezie Ikpeazu’s administration made many sincere and prudent financial decisions that the current government cannot match. He never had to recapitalize a bank, and that alone speaks volumes about the integrity of his leadership.
©️EKWEDIKE
