Abia Govt. clarifies N30 billion loan facility

Posted by News Express | 30 July 2015 | 2,895 times

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The Abia State Government is yet to access the N30 billion loan facility approved last week by the House of Assembly for the execution of capital projects, including the construction of major roads and bridges, construction of modern hospitals, infrastructural development to enhance industrial clusters in the state. Godwin Adindu, Chief Press Secretary to Governor Okezie Ikpeazu, disclosed this in a statement issued yesterday in Umuahia. He explained as follows:

•According to the latest report from Debt Management Office (DMO) Abuja, Abia State is among the least indebted states in the federation on both local and foreign loans

•What was passed is a resolution authorising the state to borrow from local banks. As at today, Abia State has not borrowed or accessed any loan from any commercial bank based on the resolution.

•There is nothing wrong for a government that has set target for itself from the day of swearing-in to borrow money for its developmental projects.

•The House of Assembly resolution is a condition precedent before accessing any loan from a commercial bank.

•Abia State Government is free to access loan for the development of the state.

•The House resolution does not in any way affect the bailout for the state currently being worked out by the Federal Government in conjunction with the Central Bank of Nigeria (CBN) and the Debt Management Office.

“This clarification has become necessary in the face of the various reports that have emanated from the resolution. This explanation should put to rest all misunderstanding that have reflected in the different reports on this matter,” Adindu stated.


Source: News Express

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