THE MISLEADING NARRATIVE OF DEBT REDUCTION AS AN ACHIEVEMENT IN DELTA STATE

Media aides often paint a rosy picture of the Delta State Government's financial management, heralding the payment of over N130 billion out of N465 billion in debt as a significant achievement. However, this portrayal is misleading, especially given the stagnation in infrastructure development across the state.

Public debt, when managed properly, can be a powerful tool for development. Governments around the world leverage debt to finance essential expenditures, protect and invest in their populations, and lay the foundation for a prosperous future. Ideally, funds obtained through public borrowing should be directed towards projects that enhance the state's infrastructure, stimulate economic growth, and improve the quality of life for its citizens. Unfortunately, the situation in Delta State starkly contrasts with this ideal.

In Delta State, borrowed funds have largely been diverted towards election campaigns, especially the vice-presidential bid of the former Governor, and election litigation costs rather than development projects. This misuse of debt undermines the potential benefits that could have been realized through strategic investments in infrastructure and public services. As a result, the state remains mired in underdevelopment, with little to show for the significant financial liabilities it has incurred.

The claim that reducing the state's debt profile by paying over N130 billion out of N465 billion is an achievement is therefore hollow. This payment is not a voluntary act of fiscal prudence but rather a mandatory compliance with standing orders entered into by the former Governor. These orders require deductions at source from the state’s federal allocation, leaving the current governor, Oborevwori, with limited financial flexibility to initiate new projects. Consequently, beyond the widely publicized Julius Berger flyovers in Effurun, there is little progress in terms of new infrastructure projects.

The core issue lies in the mismanagement of public funds and the prioritization of political goals over genuine developmental needs. The reduction in debt, while superficially positive, does not address the underlying problem of inadequate investment in infrastructure and public services. Until there is a concerted effort to reallocate resources towards meaningful development, Delta State will continue to struggle with stagnation.

To achieve sustainable development, it is imperative for the state government to adopt a more strategic approach to public debt. This involves ensuring that borrowed funds are channeled into projects that yield long-term benefits for the state’s economy and its people. Only then can debt reduction be considered a true achievement, one that is accompanied by tangible improvements in infrastructure and overall development.

The narrative that paying down debt is a significant accomplishment is a superficial one that fails to address the more profound issues of financial mismanagement and misplaced priorities. For Delta State to move forward, it must shift its focus towards leveraging public debt for genuine development, thereby creating a better future for its citizens.