Final Clarification on the N30 Billion Naira Facility

Recently, the media have been awash with different stories concerning the Abia State House of Assembly resolution authorizing the state government to access N30 billion facility loan from the local commercial banks.
For clarity, the House of Assembly last week passed a resolution authorizing the state government to borrow N30 billion from banks for the execution of capital projects which includes the construction of major roads and bridges, construction of modern hospitals, infrastructural development to enhance industrial clusters in Abia State. Please also note as follows:
According to the latest report from Debt Management Office (DMO) Abuja, Abia State is among the least indebted State in the federation on both local and foreign loans
What was passed is a resolution authorizing the state to borrow from local banks. As at today, Abia State has not borrowed or accessed any loan from any commercial bank based on the resolution.
There is nothing wrong for a government that has set target for itself from the day of swearing-in to borrow money for its developmental projects
The House of Assembly resolution is a condition precedent before accessing any loan from a commercial bank.
Abia State Government is free to access loan for the development of the state.
The House resolution does not in any way affect the bail out for the state currently being worked out by the federal Government in conjunction with the Central Bank of Nigeria (CBN) and the Debt Management Office.
This clarification has become necessary in the face of the various reports that have emanated from the resolution. This explanation should put to rest all misunderstanding that have reflected in the different reports on this matter.
Signed:
Godwin Adindu
Chief Press Secretary to the Governor.

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