Akwa Ibom State Governor Godswill Akpabio on Thursday wrote to the state House of Assembly, requesting an approval of additional N80bn loan for use by the government.
The request came barely two months after he sought and got an approval for N50bn loan.
In the latest letter to the Assembly and read by the Assembly Clerk, Mrs. Mandu Umoren, on Thursday, the governor said the loan would enable the state to offset a loan it collected from United Bank for Africa Plc last year.
He said, “I hereby request for your speedy consideration and approval of the state House of my request to borrow the sum of $500m (about N80bn) from Standard Chartered Bank International.
“The proceeds of this loan facility will be utilised to offset all outstanding loan commitment of the State Government to UBA Plc.
“This will drastically reduce the applicable interest that government would have paid on the facility from UBA Plc which runs into billions of naira.”
He stated that the loan from UBA Plc attracted interest rate of 18.5 per cent, while that of Standard Chartered Bank International was 8.19 per cent.
A source in the Assembly, who craved anonymity, said the letter seeking an approval for an additional loan had divided the lawmakers, especially as “the state government collects over N30bn monthly allocation from the Federation Account”.
He said, “The former loan of N50bn the governor collected in February has yet to be accounted for.”
Advertise on NigerianEye.com to reach thousands of our daily users
So he is mortgaging the future of unborn Akwa Ibomites. This may be part of the reason for his supporting GEJ.
ReplyDeleteIt is expected that one borrows money to invest in ventures that shall produce returns with which the loans can be serviced. Borrowing to pay to service an old debt is very funny. How would he repay the current loan if granted.
ReplyDeleteFor a state that receives the highest NDDC 13% derivation fund from the FGN, as well as being an oil state, it's rarther appalling that such a request is being brought up. The question I've been asking all these while is who is accountable to who? Where does d internally generated revenue go to? Instead we read of stories of some people sharing money in millions of Naira for some hungry councilors to buy 'mr Biggs' lunch. We heard that the state promised to sponsor people to Dubai for an unofficial wedding and giving out brand new jeeps.
He recently opened up about his involvement in rigging the last elections and nothing was done to him.
As long as nobody is held accountable for misappropriation of public funds or brought to book for wrong doings like rigging, Nigeria remains a big farce. That Is why any country within and outside Africa can treat nigerian citizens anyway they see fit because the present government , state and federal is weak. They are only strong in terms of stealing public funds and subverting laid down rules and policies for their personal gratification.
This man is an idiot, after spending the state money on rubbish, he's coming to ask for more, God will judge!
ReplyDeleteThe reason for the first approved loan may not be known to all but the reason for the second loan is economically sensible. Offset former loan with high interest rate and then manage the new one with low interest. Don't forget it is the state that will pay the money and not the Governor. It should therefore be positively considered. We should not throw the baby with the bad water
ReplyDeleteBad Governemnt on rampang, the State Government carry out his sole responsibility like road reconstructure,water provision and making life good for the common man and all is clapping for him, but that is job afterall. Governor Akapbio has mismanage the state funds, an average akwa ibomite is poor and plying okada while the sate Governor is busy sharing money and sponsoring jaboree wedding to Dubaii, God will deliver this country
ReplyDeleteGod will judge all of us.....
ReplyDeleteLet him go ask 2face and all those he has been lavishing AKS money on.
ReplyDelete