The Rivers State House of Assembly has given its approval for Governor Nyesom Wike to borrow yet another N10bn. This loan will be taken from the Excess Crude Account (ECA).
The approval was made based on the request of Governor Wike in a letter dated 5th of April 2016 to the House, seeking to explore the option of borrowing from the Excess Crude Account that is being managed by the Federal Government.
It said:
“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.”
“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.”
The request was read during an emergency session of the Assembly, which was presided over by the Speaker, Adams Dabotorudima.
He said the decision to seek the loan from the Excess Crude Account was in line with the advice of the Federal Government for states to explore the reserve fund at low interest.
After a debate on the request of the Governor led by the Chief Whip, all members of the House who were present voted in favour of the loan.