The Rivers State House of Assembly, yesterday, gave the state governor, Chief Nyesom Wike, the nod to obtain a N10billion loan from the Excess Crude Account (ECA).

The approval, which was given through a vote by the lawmakers, was in response to a letter Wike sent to the assembly through the Speaker, requesting for the loan.

In the letter, dated April 5, 2016, the governor stated that when the loan is obtained, it would be used to fund some development projects in the state.

The letter stated: “You are aware of the huge infrastructure development challenge and our efforts to address the situation. Since we came on board, we have not only remobilized all contractors handling major road sites, but have also awarded new contracts for the construction and reconstruction of new roads and other projects.”
Continuing, the governor said: “We have also advertised for tenders for the Bori-Saakpenwa road, the Obiri Ikwerre-Airport bypass, while the contracts for the comprehensive rehabilitation of eleven secondary schools and some of the dilapidated general hospitals are also due for award.

“However, our major constraint is inadequate resources, which is worsened by shrinking returns from the Federation Account.

“On the strength of the above, it is my desire to obtain a Ten Billion (N10, 000, 000,000.00) loan facility from the Excess Crude Account to continue funding our numerous development projects.

“The loan, which attracts a single interest of nine percent and 20 years repayment period, is quite favourable to the reality of the state’s economy.”
Making their contributions, the lawmakers gave tacit support to the loan, saying it would facilitate the governor’s loan drive to develop the state.
Hon Deeya Barine, who represents Khana I Constituency, argued that, “I’m gladdened that the Bori-Saakpenwa road is one of the projects that this loan is meant for and I know it would open the gateway to Ogoniland.

“I also support the loan because all the projects highlighted there; rehabilitation of schools and rehabilitation of general hospitals are worth the value for the loan.”

Hon Opurum Iruanya, who represents Etche I Constituency in the House, submitted that the road projects embarked by the governor has yielded positive results, calling on the House to give approval to the loan.

Before hitting the gavel to give final approval to the loan, the Speaker, Rt. Hon. Dabotoru Dima, said the loan is worth it, considering the percentage interest rate and the projects for which it will be used for.
The eight lawmakers, who were present at the sitting, including the Speaker, later adjourned sine die.

It will be recalled that this is not the first time the governor would be getting the assembly’s approval to obtain loan.

Last year, shortly after being sworn into office, the House also gave him approval to obtain N10 billion and another N20 billion from Access Bank and Zenith Banks respectively.

Lalasticlala

midolian:
I know Wike "means well" for Riverians

kITATITA:
That's not healthy when outlook for revenue generation ans debt repayment doesn't look positive. Besides, the frequency of the loans puts so much money under the control of the government with potential for abuse.

angels09:
How much did Fashola borrow in Lagos....How much has aregbesola who's looking for buyers for Osun state borrowed?

angels09:
How much did Fashola borrow in Lagos....How much has aregbesola who's looking for buyers for Osun state borrowed?

midolian:
A man that demands for water to quench the thirst of a sieve knowingly does so to wet the ground..

kITATITA:

I'm sure you don't expect Rivers to be like Osun. As for Lagos, the state has the capacity to generate enough to service it's debts.