Anambra House Of Assembly Approves N100b Loan Request For Infrastructural Development
Anambra State House of Assembly has approved the request by Governor Chukwuma Soludo to borrow a sum of N100 billion from the Central Bank of Nigeria (CBN), to cater for infrastructure and development in the state.
The approval came after the lawmakers adopted the report of the House Committee on Public Accounts during Wednesday plenary.
Recall that the Governor had on July 5, written to the State Assembly seeking approval to secure N100 billion Global Limit Multiple Term Loan facility from CBN, for the construction and refurbishment of key infrastructure in the state.
While submitting the report during yesterday's sitting, the chairman of the committee, Mr Somto Udeze representing Ogbaru Constituency ll, said that the Commissioners for Finance and Economic Planning and Budget were invited for interaction on the terms of the loan facilities.
He disclosed that the discussion was to confirm the terms of the loan, monthly deductions, duration of the loan, the interest rate, project specifications and the current debt profile of the state.
The Committee was said to be satisfied with the answers provided by the Commissioners and thereby granting the request.
In his words: “We observed that the N100 billion loan was strictly for the construction of roads, bridges and flyovers across the state.
“It was also observed that the current debt profile of the state at about N107 billion can still accommodate more of such loans considering the expected outcome and impact on the residents of the state.
“However, we recommended that the Commissioners should provide the list of the proposed project descriptions and expected cost of each project for ease of oversight function subsequently; and that was done
“That the loan should be secured at single-digit interest rate and be used for feasible infrastructure development alone.
“We also recommend the need for increased internally generated revenue to minimise borrowing to fund Infrastructure development in the state”.