Delta’s Debt Profile Hits N207 Billion

• Debt Ratio Encouraging – Commissioner 

Delta State’s Total Debt profile, is currently pegged at N207 billion, state commissioner for finance, Mr Fidelis Tilijie, said on Wednesday.

BIGPENNGR.COM reports the development followed the Debt Management Office (DMO), recent report which placed the State debt ratio at 8.03 percent.

Tilijie who disclosed this while answering questions from Journalists at a Press briefing on the 2021 Budget breakdown in Asaba, said that the implication of the N207 billion debt profile and debt ratio of 8.03 percent, is that the state can’t borrow more than 40 percent ratios of its debt profile.

According to Tilijie, despite the Federal Ministry of Finance’s regulatory measure on borrowing by states in which the borrowing ratio was reduced from 40% to 30%, Delta State is still within a positive debt ratio, stressing that the state was in a position to rapidly grow her debt profile.

On the funding of the 2021 budget, he stated that he was optimistic and hopeful that Delta State had the capacity to generate enough resources to fund the budget.

“We are very comfortable that our debt is off the state and I think its only Delta State that does not have up to 30% debt ratio as all other states are insisting that the ratio be moved back to 40%,” he stated.

The finance commissioner declared that Delta State Government was willing to take advantage of the dry season to fund sectors and projects especially those that could not thrive during the rainy season, saying this would go a long way in improving the infrastructural development of the state.

Giving a breakdown of the 2021 Appropriation budget passed by the house of assembly that was increase by N5.5billion, the Commissioner for Economic Planning, Dr. Barry Gbe, said that the additional increase was necessitated by the needs to increase the budgetary provision for ongoing projects and some other key capital budget needs not adequately provided for as presented to the house.

Reviewing the performance 2020 budget, the commissioner said that as part of the measure adopted by the government to respond to the corona virus pandemic in the state, the 2020 budget was amendment in order to respond appropriately to situation that prevailed.

“We prepared two budgets in year 2020 (original and revised), however,  implementing only on the the revised.

“The government during the nine months between January and September 2020 recorded a total revenue of N190, 308,961,283 out of the proportionate revenue of N211,748,922,289 which translates to 89.87 percent.

According to him,  The fiscal assumptions underpinning the 2021 budget included, Benchmark oil price of 40 US dollars per barrel, daily oil production estimate of 1.86 barrel, Exchange rate of N379 per US dollars, GDP growth projection at 3.0 percent and Inflation closing at 11.95 percent.

He explained further, that the key parameters that inform 2021 budget, even as the Nigeria total capacity is 2.5mbpd while the current crude production is about 1.7mbpd

“This includes about 300,000bpd of condensate. It is therefore not out of place to anchor our projection at 1.86mbpd.

“World Bank forecasts that crude oil prices will rise gradually from an average of US $42pd in 2021 to $44. 5pd in 2022, and US $47pd in 2023.

Additional reporting by Florence Nwabuonwu/Daniel Egwahor