Aduwo Asserts That Borrowing for Developmental Projects Is Justified

Civil society leader Comrade Olufemi Aduwo has stated that state governments are constitutionally permitted to borrow, as long as the funds are used for developmental projects. Aduwo made this comment in response to reports about Rivers State’s debt under Governor Siminalayi Fubara. He dismissed claims from an online publication that Fubara had increased the state’s debt from N5 billion to N213 billion in just one year, calling it a misrepresentation of facts. Citing records from the Debt Management Office (DMO), Aduwo, who has connections with the United Nations and the World Bank, pointed out that Rivers State’s domestic debt stood at N389.20 billion as of June 2023, a figure that predates Fubara’s administration. He stressed that state governments can borrow, provided the funds are used for development. Aduwo highlighted Lagos State as an example, noting that despite being the most indebted, its management of resources and development justifies its borrowing. Similarly, Fubara’s only loan so far, for the Ring Road project, is aimed at enhancing infrastructure and economic growth. The loan is already being serviced, reflecting the governor’s commitment to fiscal responsibility. Aduwo also criticized the political attacks against Fubara, accusing some media outlets of sensationalism. He urged media organizations to consult credible institutions such as the DMO, the Central Bank of Nigeria (CBN), and the African Development Bank (AfDB) for accurate information on Rivers State’s debt. He warned that spreading unverified claims could mislead the public and damage journalistic integrity. In his statement on Monday in Lagos, Aduwo condemned linking Fubara to debts incurred before his tenure, calling such claims dishonest and distracting from real developmental issues. He urged the media to focus on factual reporting, free from political bias, and to provide the people of Rivers State with transparent coverage.