Udom moves to loan N10 billion

*AKHA approves request 

*We will monitor Governor- Chairman, House Committee on Finance

BY EMMANUEL AKPAN

The debt profile of  Akwa Ibom State Government is rising every day. While the State Governor, Deacon Udom Emmanuel is busy flagging off new projects in the State, facts have emerged that the State Government is broke and that the State has no money to mobilize contractors to commence work.
Governor Udom in order to kick start his projects and make a mark for himself, on Monday sent a letter to the Akwa Ibom State House of Assembly seeking for approval to enable the State collect a loan of #10 billion Naira from the Excess Crude Account. Udom, THE INK gathered is seeking for the loan in order to fulfill some of his campaign promises as well as kick start infrastructural development projects such as roads, flood control and drainage projects in State.
The letter with Ref. Number GHU/AKS/S/104/V.4/702 dated 15th September, 2015 was to seek for the approval for Akwa Ibom State to partake in the Federal Government Excess Crude Account (ECA) backed loan. Governor Udom in the introduction of the letter said, at the Nigeria Economic Council (NEC) meeting of June, 2015, it was resolved that the money in the Excess Crude Account (ECA), which could have been shared among States in July, 2015 should rather be kept for States that have needs to access as loan, and that other States in the Federation have taken advantage of the offer, saying Akwa Ibom State should not be left out.
Governor Udom in his letter considered the offer by the Federal Government as part of measures to cushion the effect of the dwindling oil prices and resultant reduction in State’s revenue. The letter reads in parts “Other States in the Federation have applied for into the Excess Crude Account Backed Loan and Akwa Ibom State should not be left out. The Excess Crude Account Backed Loan offer a single digit interest rate of 9% per annum lower than any other loan and repayment period of 20 (twenty) years long enough for long term capital investment. This low interest loan enable the State Government invest in infrastructural development projects such as roads, flood control and drainage projects in State.”
Udom further prayed that the House of Assembly should approved the participation of Akwa Ibom State in the Excess Crude Account (ECA) backed Loan offered by the Federal Government in the total sum of Ten Billion Naira (#10b).       
The letter which was sent to the Speaker of the House Assembly, Hon. Aniekan Uko some days ago, had to rattled the speaker to an extend of convening an emergency plenary last Monday.
THE INK reporter, who monitored the emergency sitting, observed that members arrived as about 10.am to attend the executive session at the speaker’s office and the meeting lasted for over five hours. Our reporter also spotted the State commissioner for Finance, Mr. Akan Uko who later came to the House and moved straight to the speaker’s office to explain some points to the lawmakers as well as give reasons why the governor’s letter should be approved.
It was gathered that the plenary started by 3.pm. The governor’s letter was read on the floor of the House by the House clerk, Mrs. Mandu Umoren. The house after deliberations approved the governor’s request. Speaker, Aniekan Uko directed the clerk to communicate the approval to the governor.
Speaking with THE INK reporter in his office shortly after the plenary, the Chairman, House Committee on Finance and Appropriations, Hon. Usoro Akpanusoh said his committee had to approve the governor’s request considering of the urgency of the letter. He explained why the House of Assembly approved the request, adding that it is an opportunity for Akwa Ibom State Government to benefit from the Excess Crude Account Backed Loan provided by the Federal Government.
According to him “The governor is flagging off projects across the State, so he need to loan so that he can kick start the projects. The governor has specified what he wants to use the loan for, which to enable the State Government invest in infrastructural development projects such as roads, flood control and drainage projects in State.”
 He further said the House will ensure that they monitor how the money would be used. “We are entitled to know what the State Government is using money for in terms of projects. So we will monitor how the loan would be used. The constitution of the Federal Government empowers the House of Assembly to monitor the executive and how the State budget is implemented.”