Borrowing govt! Again Udom moves to borrow N1b

Udom Emmanuel

BY EMMANUEL AKPAN

Just two weeks after the Akwa Ibom House of Assembly approved a loan request for Akwa State Government to loaned 10 billion Naira from Excess Crude Oil Account of the Federal Government, the State Governor, Mr. Udom Emmanuel last Thursday sent a letter to the House of Assembly seeking approval for Akwa Ibom State to partake in the Central Bank of Nigeria Commercial Agricultural Credit Scheme (CACS).

The letter which was read by the Clerk of the House of Assembly, Mrs. Mandu Umoren during the plenary had the support of all the 11 members who attended the sitting. The letter with Ref. number GHU/AKS/S/96/289, dated 22nd September,2015 was addressed to the Speaker of the Akwa Ibom State of Assembly.
In the introductory part of the letter, Governor Udom Emmanuel said as part of the bailout activities of the Federal Government to empower citizens towards economic stability through increased agricultural activities, the Central Bank of Nigeria is offering loans to States under the Commercial Agricultural Credit Scheme (CACS), and that other States in the Federation have taken advantage of the offer and as such, Akwa Ibom State should not be left out.
The governor in his consideration noted that the offer by the Federal Government is part of measures to cushion the effect of the dwindling oil prices and resultant reduction in State’s revenue. He said other States in the Federal have applied for the loan offer by the Central Bank of Nigeria and Akwa Ibom State should not be left out.
The letter reads, “The Commercial Agricultural Credit Scheme Loan offers a single digit interest rate of 9% per annum, inclusive of all charges with a repayment period of  7 (seven) years. The Scheme is to fast track development of the agricultural sector by providing credit facility to commercial agricultural enterprises at a single interest rate.”
Udom further requested the House of Assembly to approve the participation of Akwa Ibom State in the Commercial Agricultural Credit Scheme of the Federal Government through Central Bank of Nigeria in the total sum of One Billion Naira (N1b).
The letter was referred to the House Committee on Finance and Appropriations for necessary actions before it would be approved.