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Cross River Assembly Grants Loans For Calabar City, Agro-Credit Scheme

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CALABAR, June 12, (THEWILL) - Cross River State House of Assembly has authorised the granting of a N2.4billion loan to the state government for the Calabar Media City-Special Purpose Vehicle (SPV) between the government and Ebony Life.

In a letter to the Assembly dated 31st May, 2012, Governor Liyel Imoke had said the essence of the facility is to set up an entertainment channel, which would serve as the hub of African Private Television Entertainment in Calabar Media City. He said Ebony life, the partner, is highly experienced and will handle the operation; while MOFI, another partner, will assist in overseeing the business.

He said the revenue prospects of the business are high; and that it is envisaged that the government guarantee will never be called-in for failure of the business to meet its obligation. “Calabar Media City, through Ebony life, has secured the patronage of Multi-choice company. The total fees of N2 billion is expected from multi–choice in the first year of operation,” he added.

Imoke stated that other revenue services include several projects that will yield income from professionals, institutions, and tourists, as the projects will also include Calabar Film Academy, Calabar Film Festival, Calabar Music Festival and Calabar Festival Week.

According to him, the business revenue plan shows that by the third year of operation, the revenue will be N3.8 billion and by the seventh year, the total income expected will be N33.3 billion.

“The highlight of the First Bank offer shows the borrower and therefore, the obligator is Calabar Media City with tenor of 48 months and 16 per cent interest rate, with other fees granting at a total of 1 per cent flat.”

In a related development, the Assembly also granted the government an approval to access a N2 billion federal government agriculture loan.

Introducing the matter to members of the House, the speaker Rt. Hon Larry Odey commended the governor for being very passionate on issues concerning the people, and urged his colleagues to give urgent attention to his request.

Other members advised those saddled with the responsibility of disbursing the loan to ensure that adequate sensitisation is done to properly educate the beneficiaries and that they should equally ensure that certain communities or individuals will not be denied access to the loan. They also called on citizens of the state to take advantage of the loan to better their lots.

Governor Imoke had said in a letter dated June 7, 2012 and addressed to the Honourable Speaker that, it was the intention of the government to access an additional N2 billion loan under the Commercial Agricultural Credit Scheme for disbursement to farmers across the State.

This, he said, was in line with the vision of government to reposition the state as the leader in agricultural production for improved economic wellbeing and prosperity of the citizenry, thereby meeting the state’s obligations under the federal government’s agricultural transformation agenda.