Abia Shops For N30.7bn From World Bank, Others

Abia State government has received the nod of the State House of Assembly to borrow a total of N30.7 billion to tackle pressing problems facing the state.

  Deputy Speaker of the Abia House of Assembly, Chief Chinedum Elechi, who disclosed this to newsmen during the monthly briefing of the legislature, said the House has approved the request by the Executive arm of the government to borrow $200 million (N30 Billion) from the World Bank for developmental projects and another N700 million from Nigerian Commercial banks for the sole purpose of paying arrears of salaries owed secondary school teachers in the state.

  Elechi said the World Bank loan was an alternative to the N30 billion bond which the House had in march passed into law for the state to shop from the capital market  but the state was yet to access the bond market due to some hiccups.

He said: “You may also know that the Abia State House of Assembly (ABHA) gave resolution to the Executive arm of government requesting our approval to borrow $200 million from the World Bank for developmental projects.

  “You may recall that ABHA had passed the N30 Billion Bond Law when the executive requested to borrow money from the Bond market to help its developmental projects in the state. But some how, up till now; the process has not been concluded. It was more or less, we have passed the law alright and with so many amendments. That law involved so many agencies and there were very stringent conditions.

  “I believe that somewhere along the line, the executive arm of government has not been able to access the bond market for the purpose of this bond and then this World Bank deal had come which had better conditions for repayment and then the amount is also very close to what the executive was seeking in the bond market.

  “So, pretty much, I think the bond thing has been kept aside and the World Bank Loan is probably going to be faster to get to the state and then the conditions for paying back and interest are better for the state. So, basically the Abia House of Assembly has given approval to the Abia State Executive arm to borrow the $200 million which they require. So, we have given the approval in principle.”

  Similarly, according to Elechi, the House approved the request of the executive to borrow N700 Million from commercial banks to offset teachers’ arrears of salaries.

  “After due consideration, the executive arm of government decided it should borrow money internally to be able to pay teachers salaries. So this House of Assembly has given an approval to the executive arm to borrow N700 million from the Nigerian banks  with a view to paying off Teachers Salaries so that teachers and their families can also enjoy the holidays,” Elechi said.

  The Deputy Speaker who is also the Chairman House Committee on Information, Culture and Tourism said the House has waded into the political battle between former Governor Orji Uzor Kalu and  Imo State Governor, Chief Ikedi Ohakim, with a view to ending the rift  which led the Imo State House of Assembly to issue a warrant of arrest for Kalu.

  He said that both Houses of Abia and Imo have met over the issue.

On the on-going alleged face-off between Abia Governor, Chief Theodore Orji and Kalu, Elechi declared that there was no dispute between the two PPA juggernauts.