A Chartered Accountant, Chartered Economist, Public Affairs Commentator and Analyst, Prof. Chiwuike Uba, has expressed concern over the rising external debt profile of South-East states, warning that increasing borrowings without corresponding economic growth and transparency could further worsen the region’s financial situation.
Prof. Uba made the remarks while speaking on Beyond the Headline, a programme aired on Freedom Square TV and hosted by Dr. Uchenna Cyril Anioke. The discussion focused on dwindling foreign exchange inflow, external debt and economic development in the South-East region.
According to Prof. Uba, the phrase “dwindling external debt” does not reflect the true reality in the South-East, noting that available data shows a steady increase in the region’s external debt burden rather than a reduction.
“Looking at the data, what we are seeing is worsening external debt because the debt profile of South-East states is increasing instead of reducing,” he stated.
Speaking on the process of external borrowing by state governments, Prof. Uba explained that no state can obtain external loans without the approval of the Federal Government since such loans are captured within the national financial structure.
He further noted that state governments are also required to seek approval from their respective State Houses of Assembly before obtaining external loans.
According to him, citizens must be adequately informed whenever states intend to borrow because the debt burden ultimately affects the people.
“There is a need for transparency in how public funds are borrowed and utilized. Citizens deserve to know why money is being borrowed and whether the objectives of the borrowing are achieved,” he said.
Prof. Uba called on political leaders, including the President and state governors, to remember that they hold power in trust for the people and should therefore govern with openness and accountability.
On foreign investment in the South-East, the economist lamented the low level of capital inflow into the region over the past decade, stating that most South-East states have attracted little or no foreign investment.
He noted that poor business environments and insecurity remain major factors discouraging investors.
“You cannot attract investors when the business environment is not encouraging,” he said.
Addressing the role of insecurity in worsening economic conditions, Prof. Uba acknowledged that security has improved in parts of the South-East but stressed that more still needs to be done to create a stable environment capable of attracting investments.
“It is only a person who feels safe and secure that can invest confidently,” he added.
Prof. Uba also acknowledged the significant contribution of South-Easterners to commerce and economic productivity across Nigeria, but argued that the region itself is not generating enough revenue because most businesses operating within the South-East are still largely small-scale enterprises.
He therefore urged state governments to create enabling environments that support business growth and entrepreneurship.
The economist further identified poor economic structure and underutilization of public assets as some of the major challenges affecting development in the region.
Using Enugu State University of Science and Technology (ESUT) as an example, he suggested that state-owned institutions could generate revenue by building a Civil Engineering Company in the school, instead of focusing only on increasing the tuition fees.
According to him, abandoned government properties should be leased and properly managed instead of being sold off indiscriminately.
Prof. Uba also advised state governments to reduce excessive borrowing and instead focus on improving Internally Generated Revenue (IGR) through productive investments and sustainable economic initiatives.
“The more governments continue to borrow, the higher the debt burden becomes, making repayment increasingly difficult,” he warned.
He further highlighted the tourism potential of Enugu State, noting that properly developed tourist sites could attract both local and foreign investors and generate significant revenue for the state.
Speaking on regional cooperation, Prof. Uba stressed the need for South-East states to stop competing against one another and instead work collectively based on each state’s comparative advantage.
According to him, states in the region possess different economic strengths that can complement one another.
He noted that Ebonyi State is widely known for agriculture, while Enugu State has strong potential in tourism and education, adding that regional collaboration would strengthen economic growth across the South-East.
The public affairs analyst also advocated for the construction of ring roads connecting South-East states, explaining that improved regional connectivity would enhance trade, movement and economic integration.
However, he expressed disappointment over the performance of the South-East Governors’ Forum, accusing the body of failing to meet the expectations of the people.
According to him, the forum has not done enough to promote genuine regional cooperation and development.
He urged governors in the region to prioritize cooperation over unhealthy competition in order to achieve sustainable economic progress.
In his closing remarks, Prof. Uba called for a reduction in borrowing, improved Internally Generated Revenue, proper project planning and greater citizen participation in governance.
He also advised governments to conduct proper cost-benefit analysis before embarking on major projects in order to determine their economic, social and financial sustainability.
According to him, governments should not rely excessively on taxation as a source of revenue, but instead focus on improving the business environment and supporting Small and Medium Enterprises (SMEs) across the region.
“We must come together as a region, identify where we are lacking, involve the citizens fully, and pursue the necessary improvements needed for sustainable development,” he concluded.