The Federal Ministry of Finance Federation Account Allocation Committee (FAAC) documents obtained by The Realm News revealed that the federal government remitted the net sum of N209.336 billion to Abia State FAAC account in 39 months.

It also revealed the reckless management of Abia State funds as the state’s domestic and external debts increased astronomically by 300 per cent during the period under review.

According to the finance ministry, the state executive received the sum of N128.149 billion while the 17 local government areas (LGAs) got the sum of N81.187 billion from May 2015 to July 2018.

Abia: State and local government FAAC allocations

This analysis shows that from May to December 2015 (seven months) the Federal Government remitted the net sum of N25.585 billion into Abia State account and N15.968 billion into the 17 LGAs account. These amounts, when summed up amounted to N41.553 billion.

Despite receiving this sum in its first seven months, Ikpeazu’s government significantly increased Abia State’s domestic and external debts with N8.404 billion and $7.711 million respectively with no corresponding projects to show for them.

According to the Debt Management Office (DMO) records, Abia State domestic and external debts were N25. 126 billion and $33.791 million respectively before the enthronement of Ikpeazu’s government. The debts, however, rose to N33.530 billion and $41.502 million by December 2015, just seven months into Ikpeazu’s administration.

Suspicions intensified that Abia State government may have deliberately falsified its debts profile to the DMO in order to conceal its frighteningly huge debts. This was based on the revelation contained in the capital development fund documents obtained exclusively by The Realm News few months ago.

The documents revealed that Ikpeazu’s government borrowed N43.02 billion from an unnamed financial institution in 2015 during the ongoing election tribunal and Appeal Court cases. The concealment of the lender amplified doubt that the money was probably not appropriated by the House of Assembly and as such was not declared to DMO.

The Fraud

The Realm News investigation revealed that the N15.968 billion the FG remitted to the 17 LGAs of Abia State in 2015 was diverted by Ikpeazu’s government. The same also applied to subsequent remittances.

For example, in June 2015 immediately Ikpeazu’s government took over, the FG remitted into the 17 LGAs accounts the net sum of N3.668 billion.

Federal government allocation to local governments in Abia State (2015)

We can authoritatively report that the trend in Abia State is that LG chairmen are made to sign receipt of these various sums but are given the paltry sum of N3 million to cater for the day-to-day running of their various councils. When summed up, it amounted to N51 million only. In other words, the N15.968 billion remitted to the LGAs in Ikpeazu’s first seven months in 2015, only the sum of N357 million was given to the 17 LGAs while the government diverted the balance of N15.601 billion into personal pockets.

A worker in Umuahia North LGA who preferred anonymity told us that they were not only owed four months’ salary arrears but that government also failed to pay their December salaries that year.

“The governor promised to pay civil servants on or before 25th of every month. Not only that this promise was not kept but we were also owed about four months’ salary arrears,” she said.

“Our most awful moment was when we were not paid our December salaries. No civil servant celebrated the Christmas happily in Abia State in 2015.”

Aside the agonies it caused the Abia LG workers, the criminal diversion of LG funds by Ikpeazu’s government is one of its greatest infamy against the residents. One of reasons for the establishment of local councils is to accelerate development. That explains why Abia State under the watch of Governor Ikpeazu looks like war ravaged city, and its residents like they were returning from refugee camps.

One of the surprising discoveries in the capital development funds documents was that Abia government budgeted revenue for that year was N20 billion but shockingly it claimed that the actual revenue (IGR) derived was just N105 million. That is N15 million generated internally every month for seven months.

This is laughable when you consider the number of lock-up shops and motorist in Abia State. For instance, the National Bureau of Statistics in its July 2010 bulletin revealed that the number of persons working in the informal sector (traders, artisans and commuters) in Abia State was 1,765,008 million. Though this number has increased, Abia State government will generate the sum of N1,765,008,000 (one billion, seven hundred and sixty-five million and eighty thousand naira) just taxing each of these informal workers N1,000 monthly.

This example is exclusive of monies generated also from taxes and levies, including Personal Income Tax; Withholding Tax, Capital Gains Tax, and Stamp Duties on instruments executed by individuals. Yet Ikpeazu’s government said it generated N105 million, that is N15 million monthly during the period under review.

Going by the roguish IGR of N105 million it declared, the total amount Ikpeazu’s government received from the FG and from various loans in seven months’ (May – Dec 2015) was N84.678 billion. Yet nothing was achieved, not even the constant payment of workers.