Akwa Ibom House okays 10billion naira loan for state govt

Akwa Ibom State House of Assembly has given Governor Udom Emmanuel approval to borrow N10 billion Federal government Excess Crude Account, ECA, backed loan.

According to a statement, yesterday, in Uyo by the Chief Press Secretary to the Speaker, Mr. Mbosowo Essien, the House gave the approval during its plenary on Monday.

The statement said Governor Emmanuel had, in a letter titled, Approval for Akwa Ibom State to Partake in the Federal Government Excess Crude Account, ECA, Backed Loan, sought the approval of the House to obtain a loan of N10 billion to enable him carry out his development plans.....


In the letter the governor explained that the Excess Crude Account backed loan offers a single digit interest rate of 9% per annum.

Chairman, House Committee on Finance and Appropriation, Dr. Uso Akpaniusoh, while moving the motion for the approval, said the N10 billion loan facility would assist the government to embark on industrialisation of the state since the governor had already put in place programmes in that direction.

He explained that the loan was not an ordinary commercial bank loan but a Federal Government initiative. “The governor knows what is good for the state because of his experience in the financial world. Therefore, I urge this honourable House to give the governor the necessary backing since it is for the benefit of the state,” he said.

Other members who spoke on the loan also expressed confidence in the ability of the governor to manage the fund well as a financial expert.

In his remarks, the Speaker, Aniekan Uko, appreciated the members for their support and urged the governor to ensure that the fund was used judiciously in developing the state which was indicated in the letter as the main purpose of obtaining it.