RVHA Okays Gov’s N100bn Loan Request

The Rivers State House of Assembly has approved  the request of the Rivers State Governor, Rt Hon Chibuike Rotimi Amaechi to obtain a revolving term loan of one hundred billion naira (N100bn) from Guarantee Trust Bank Plc.

The approval followed deliberations by Assembly  members and a vote yesterday on the governor’s request made to the House.

The revolving loan,  according to Governor Amaechi, “ will be utilized to finance various developmental projects currently underway in the state, and will be repaid with proceeds from internally generated revenue  of the state based on agreement”

The amount which represents total loan package to be drawn from  three years period, at 8% fixed interest rate, with a maximum of single draw thirty billion naira (N30bn) only.

Contributing to the debate, the Deputy Speaker of the state Assembly, Hon Leyii Kwane said the governor’s loan request was proper in view of the enormity of development challenges in the state,  and listed some of the various  development projects being embarked upon by the state government.

Hon Kwane who represents Khana Constituency II also emphasised the need for the House to review upwards, its oversight functions, especially in the monitoring of internally generated revenue which he said, was the most viable means of ensuring repayment of the revolving loan.

In her contribution, Hon Victoria Nyeche representing Port Harcourt constituency I urged the House to give approval to the request since it was to finance on-going projects, insisting that the Guarantee Trust Bank’s interest rate was considerably minimal, if compared to what obtain in  other banks.

Hon Augustine Ngo of Abua/Odual constituency  also spoke in support arguing that the loan, when obtained, would certainly quicken the timely delivery of various on-going projects in the state, especially those of road construction.

Also contributing, Hon Onari Brown of Akuku Toru constituency I, said that the Rivers State internally generated revenue (IGR) profile indicates that the state is well equipped to pay back the loan.

He said that the Amaechi administration has so far demonstrated a strong political will to develop the state  and has exhibited true frugality and assured that with such antecedent, the loan cannot be a debt burden for future administrations in the state

Hon Martins Amaewhule of Obio/Akpor constituency I and his counterpart in Obio/Akpor constituency II, Hon Micheal Chinda also spoke in support of the approval of the loan request, with the argument that it would help fast-track development in the state.

Before ruling on the issue, the Speaker, Rt Hon Otelemaba Amachree, called for a vote during which all 25 members of the Assembly present voted unanimously in support of the loan request. The House later adjourned to Monday 29th August, 2011.

Taneh Beemene