Home / News / Excess Crude Account: AKHA approves N10Billion loan  for Gov. Udom Emmanuel – By Mfonobong Ukpong

Excess Crude Account: AKHA approves N10Billion loan  for Gov. Udom Emmanuel – By Mfonobong Ukpong

…Funds to be used for capital expenditure—Gov. Udom

Akwa Ibom State House of Assembly has acceeded to a N10Billion(Ten Billion Naira) loan request by executive. The loan was approved today(Monday) during plenary.
Though the lawmakers were earlier billed to resume sitting tommorrow, (Tuesday), the exigency of the governor’s request may have informed the decision of the House to convene today.
The low interest loan which is backed by the Excess Crude Account of which Akwa Ibom is believed to have the largest share of allocation, is a low interest loan and will enable the state government to invest in infrastructural development projects such as roads, flood control and drainage projects in the state’, according to the governor’s message.
In a message to the House read by the Clerk, Mrs. Mandu Umoren, the letter dated 15th September, 2015 with government reference number; GHU/AKS/S/104/V.4/702. The letter from the governor with title, reads: ‘Approval for Akwa Ibom State to Partake in the Federal Government Excess Crude Account(ECA) Backed Loan’.
The governor informed the Lawmakers of the resolution of Nigeria Economic Council, (NEC) meeting of June,2015, where 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.
Governor Udom informed the House that whereas, other states in the federation have taken advantage of thid offer and as such, Akwa Ibom State dhould not be left out.
He asked the Legislators to note 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.
According to him” other states in the federation have applied for into the Excess Crude Account backed loan and Akwa Ibom State should not be left-out”, he reminded the House.
On the modalities and tenor backing the loan offer, the governor told the House that “The Excess Crude Account backed loan offers a single digit interest rate of 9% per annum lower than any other loan and repayment period of 20 years long enough for long term capital investment”.
He prayed the House to approve 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.(N10Billion).
Receiving the governor’s message, Speaker, Rt. Hon. Aniekan Uko sought an indepth explanation from the Chairman, House Committee on Finance and Appropriation, Hon, Usoro Akpan Usoh on why the loan should be approved. Throwing more light into the loan offer, the Esit Eket/Ibeno representative, AkpanUso,  urged the House to consider the governor’s request, pointing out that since state government intends to use the loan facility to finance infrastructural projects and not re-current expenditure, the House of Assembly should approve the loan to enable the government fulfill it’s campaign promises to Akwa Ibom people.
Other members who spoke in support of the loan include, Deputy Speaker, Effiong Bassey(Oron/Udunguko), Rt. Hon. GabrielToby (Etim-Ekpo/Ika) Rt. Hon. Barr. Ime Okon(Ibiono Ibom) Rt. Hon. Nse Ntuen(Essien Udim), Rt. Hon. Victor Udofia,( Ikono) Hon. David Lawrence,(Eket) Hon. Emmanuel Ekpenyong(Ini),Hon. Mark Esset(Nsit Atai) and Hon. Nse Essien(Onna).
In their arguments, the Lawmakers reasoned that the state stands to benefit immensely from accessing the loan and requested colleagues to grant the request of the governor.
After listening to the debates by the House members who were unanimuous in their argument for the approval of the loan, Speaker, Aniekan Uko put a voice vote through to the floor of the chambers, and the Lawmakers in unison, chorused in support of the loan.
Reacting, the Speaker thanked his colleagues for their painstaking deliberation on the governor’s request, and directed the Clerk of the Assembly to convey the House approval for the Excess crude account backed loan to the governor.
Aparently in a bid to ensure a smooth sail of the governor’s request on the floor of the House, Commissioner for Finance, Mr. Akan Okon was sighted at the assembly complex shortly before the days sitting.

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