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PETER OBI DID NOT LEAVE 75 BILLION NAIRA CASH FOR GOVERNOR OBIANO By Willie Nwokoye robably induced by sworn opposi on, the Nigerian social Pmedia have spewed the allega on that immediate past Governor of Anambra State Peter Obi handed over N75 billion in liquid cash to Governor Willie Obiano in 2014. This has induced the general imagery that the huge bequest is the basis for the current Governor’s financial confidence since incep on. To some people, the social media today is a thriving pla orm for a flourishing trade in inanity. Ironically, the pla orm is easily where a fair number of unreflec ve people are effec vely held cap ve with enthralling junks, which explains why the talk of a N75 billion cash hand-over has become a worrisome ma er in the minds of Ndi Anambra despite Governor Willie Obiano’s excellent 18 months in office. Obviously frustrated by the silence of Government, the merchants of the N75 billion tale devilishly went underground, seeking the false en cement of respectable affinity groups through the Bishops and Tradi onal Rulers. Obviously the hand that bears the beguiling papers is the hand of Esau; but the voice in the social media is Jacob’s. regarded as a State Reserve Fund, a kind of saving for the rainy day. It is not realizable yet into cash. Items 16 to 19 in the Hand-over extract, amoun ng to N2.48 billion are the State’s counterpart funds or contribu ons to Funds held by Federal financial ins tu ons. These ins tu ons administer the contribu ons as so lending for small scale businesses, agriculture and small industries in the State. Having been contributed as counterparty fund, the cash is not available to the State any more. For reason that will be obvious shortly, let us skip item 20 and treat item number 21 which is the N10 billion spent by the State on Federal roads across the State and had been verified for refund by the Federal Government as at Hand-over date. In fact, the verified figure has risen to N25 billion at present on Governor Willie Obiano’s efforts with the relevant Federal Agencies. It is per nent to state that this is pure and plain IOU by the Federal Government, which can conceivably be cash available to Governor Obiano only when it is refunded by the Federal Government. To disabuse the minds of the ci zens who the Governor ordinarily holds dear, the Principal Officers of the State, led by the Secretary to the State Government, Professor Solo Chukwulobelu addressed the press on Saturday, November 14, 2015 at the Conference Hall of the SSG's office at the Government House Complex in Awka. In somewhat pedagogic deliberateness, the SSG went through a 6- page verba m extract from ex-Governor Peter Obi’s Handover Note. At the end of the Press Conference, the items that made up the N75 billion were laid bare. The headline item was a N9 billion involuntary investment charged on Anambra State from the Federa on Account to fund Nigeria’s Independent Power Projects. This is a nontradeable equity in a long-term investment. The subsequent 12 items on the extract are similar long-term investments, each in differing level of comple on like the State’s equity investments in Orient Petroleum Resources; investments in Onitsha and Agulu Lake Hotels as well as in the three Shopping Malls in Awka, Onitsha and Nnewi; the State’s equity investment in Intafact Beverages Limited, the brewers Hero lager and investments in the two Onitsha Business Parks. The last item in the row of long-term investments is a N750 million Anambra State’s share in the old Eastern Nigeria’s First Republic investment in Emenite Limited, a manufacturer of fibre cement roofing and ceiling products. In all, the long-term, nonearning assets in the fairy N75 billion sums to N22.73 billion or 30%. It is analy c to reason that 7 out of the 13 long-term assets are uncompleted yet; they therefore cannot begin to earn cash un l they are completed, off-taken, let or a ain cri cal mass as first should in the case of Orient Petroleum. Included also is a N350 million investment in quoted stocks. This, no ques on, is tradeable, which means that the investment can be sold and realized into cash. The stock is worth currently about N200 million following falls in the value of shares. The number 15 item on the Hand-over extract is a N1.5 billion computa on of the State’s share of the Excess Crude Account contributed as capital to the Nigerian Sovereign Investment Fund in 2010. At best, this can be 7 The nearest item to cash in the foregoing is listed as 20, which is a USD155 million investment in Eurobond and other foreign currencydenominated securi es made by the previous administra on at its twilight. In naira terms, this was worth N26.5 billion at handover. The Press Conference came out informed that this investment is intact in the three managing banks and unliquidated yet. In simple language, Governor Willie Obiano’s administra on has not touched one dollar of this investment. Item 22 is a statement of the real cash handed over by Peter Obi. By the Hand-over Note, cash at bank as at December 31, 2013 was N11.5 billion. However three months a er, precisely on the handover day March 17, 2014, the cash had dwindled to just about N9 billion. Thank you. The foregoing analysis has been on items on the asset side of the Hand-over Note. Now let us go over to the liability side. Total contract sum for all projects inherited from Peter Obi is in the amount of N185 billion. In keeping faith with the promise of con nuity, comple on, commission and commencement, Governor Willie Obiano has silently been paying down the inherited contracts strictly from Federal transfers received in the period of his administra on. Someone said that by s cking to his own earnings, Governor Willie Obiano has acted as though led by a premoni on that a N75 billion sing-song would soon be in the offing. Thus, from March 2014 through August 2015, a total of N69.2 billion has come in to Governor Obiano’s Administra on as Federal transfers, out of which N35 billion has been u lized in whi ling down the inherited liability, unannounced. It is a sincere expecta on, therefore that these analyses should generate more progressive conversa ons and drown the chorus in the N75 billion folklore for good. If it con nues, then it is correct to conclude that the inten on ab ini o has been to keep the grave silence over the huge liability, well, ever silent. Sir Willie Nwokoye is Principal Secretary to Governor Willie Obiano
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