Abia’s N5 Billion UBEC Fund Stalled: Governor Otti’s Push for Signature Bank Leaves Schools in Ruin | #NwokeukwuMascot

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Abia State’s N5 Billion UBEC Fund Stalled Amid Allegations of Mismanagement | #NwokeukwuMascot

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Abuja, Nigeria — A staggering N5 billion from the Universal Basic Education Commission (UBEC) remains trapped, leaving schools in Abia State in dire conditions. The delay, allegedly fueled by personal interests and bureaucratic conflicts, has brought critical infrastructure projects to a standstill, sparking widespread concern among stakeholders.

The UBEC fund, intended for the renovation and modernization of primary schools and junior secondary schools (JS1–3) in the state, has been inaccessible for over three years. This includes a required counterpart fund of N4.2 billion, which the Abia State Government initially deposited in a UBA account. This counterpart fund was expected to trigger the release of a matching sum from UBEC, bringing the total to N8.4 billion for the much-needed school infrastructure upgrades.

However, controversy erupted when the state government allegedly directed that the counterpart fund be transferred to Signature Bank, a regional bank founded by Governor Alex Chioma Otti reportedly tied to Abia State’s financial operations. According to sources, the Executive Secretary of the Abia State Universal Basic Education Board (ASUBEB), Mrs. Ezihe L. Onuoha, complied with the directive but encountered resistance from UBA, which reportedly warned of potential procedural complications. Despite the challenges, the funds were eventually moved to Signature Bank, sparking a standoff with UBEC.

UBEC reportedly rejected Signature Bank as an authorized financial institution due to its classification as a regional bank with low capitalization. The commission insisted that Abia State must utilize one of its approved banks, including First Bank, Zenith Bank, UBA, or Access Bank, to facilitate the transaction. As a result, the disbursement process stalled, leaving the state unable to access the funds for its educational projects.

The impasse has had severe implications for schools across Abia State, many of which are in deplorable conditions. A primary school near the governor’s residence in Umuehim is emblematic of the crisis, with classrooms left exposed as roofs have deteriorated beyond repair.

The situation has raised questions about governance and accountability in Abia State. Critics argue that the insistence on using Signature Bank reflects a conflict of interest, overshadowing the urgent need for infrastructural development in schools.

“This is a glaring example of how personal interests and bureaucratic conflicts are hindering progress in Abia State,” said an anonymous source within ASUBEB. “While schools are left to rot, officials are engaged in power tussles over financial institutions.”

For the past three weeks, Mrs. Onuoha has reportedly been engaging with UBEC officials in Abuja, attempting to negotiate a policy shift to accommodate Signature Bank. These efforts, however, have yet to yield results, leaving the fate of Abia’s educational infrastructure hanging in the balance.

The delay has sparked outrage among residents and education advocates. Many see the situation as a betrayal of the promise of a “New Abia,” with the administration’s focus appearing to diverge from the state’s pressing needs.

“The government must put the interests of our children first,” said a concerned parent. “Our schools are falling apart, yet politics and personal interests are taking center stage.”

The development has cast doubt on his commitment to the recently announced free education policy. While the initiative has been widely applauded, it is not a new development in Abia State, as free education has been in effect since 2005. The ongoing standoff between UBEC and Abia State over the choice of financial institutions underscores the critical need for transparency and prioritization of public interest. As classrooms continue to crumble, stakeholders are urging the state government to resolve the conflict and ensure that the long-awaited funds are put to their intended use—providing quality education for Abia’s children.

For now, the N5 billion remains trapped, and the state’s students are paying the price for what many describe as a failure of leadership.

#EDUCATION