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The Cross River State House of Assembly has again expressed reservations, as the state government shops for N35b loan from three commercial banks in the state for the second time in three weeks.
Request for the loans is coming in spite of the state’s N146b debt profile and ranking second to the last in the federal revenue allocation, plus N1.8b compulsory monthly deduction at source for debt servicing.
Secretary to the State Government, Tina Agbor, had in a letter dated January 14, 2020 to the House of Assembly said, “In line with the desire to make Cross River State an industrialised state, government has approached the United Bank for Africa (UBA) for N15b for developmental and allied projects.”
She added that the facility was offered for 120-month tenor at an interest rate of 15 per cent per annum.
On Tuesday the Assembly had received a fresh loan request for N10b each from First Bank and Zenith Bank for the development of the state.
Again after a heated debate, the lawmakers, again, committed the governor’s request for approval to its Committee on Finance and Appropriation for scrutiny.
A statement issued by the Information Officer of the Assembly, Mrs. Itam Ofor, said the House deliberated on the requests in two letters from Agbor on February 12, 2020 during plenary.
The statement revealed that members who commended the governor’s industrialisation drive, however, observed that there was the need for the House to be furnished with more details including the type of projects being considered, their cost, location and the total facilities already accepted by the state government.
