AKSG clarifies N10b ECA Loan

Akwa Ibom State Government has shed  more light on the recent approval by the State House of Assembly for it to access 10 billion Naira Excess Crude Account Loan.

At a press briefing in Uyo recently, the State Commissioner for Finance, Mr. Akan Okon stated that contrary to misrepresentation of the issue in some quarters, the loan platform was the initiative of the National Economic Council led by the Vice President, Yemi Osinbajo that proceeds from the Excess Crude Account which were usually shared among the 36 States should now serve as a collateral under which States could access a maximum of 10 billion  Naira to finance their capital projects in view of the dwindling oil revenue.

He said it was in line with this decision by the National Economic Council which had also directed the Central Bank of Nigeria to create a pool of loanable funds for interested states to access, that Akwa Ibom  sought and got the approval of both the Executive and Legislative arms to access the 10 Billion Naira ECA loan ,being the highest contributor to the account.

Mr. Okon who pointed out that it was not out of place for government to obtain loans to finance long term projects  that would have multiplier effects on the people of the State which is the practice even in developed countries in the world, however  stressed that the ECA loan was specifically for developmental projects.
The Finance Boss noted that Akwa Ibom State was only taking advantage of this window provided by the federal government which was cheaper and more convenient than commercial bank loan that usually attracts high interest rate and short term payment period, calling for the understanding of all as the Government of Udom Emmanuel has good intentions for the people of the State.

Also speaking ,the State Commissioner for Information ,Mr. Aniekan Umana, condemned the misrepresentation of the ECA loan by the media.

He advised journalists to be guided by the ethics of the profession by always establishing facts as well as seeking clarifications from the right sources before news are published so as not to misinform the public, thereby heating the polity.