The Rivers State House of Assembly on Friday approved two requests from the State Governor, Chief Nyesom Wike, to take N12bn loan from the Central Bank of Nigeria.

The House approved the executive requests through a voice vote after an extensive debate on them (requests).

Wike had pointed out in the letter he sent to the House through the Speaker, Adams Dabotoru Dima, that the loan would allow his administration to complete the recently inaugurated Saakpenwa-Bori and Tam David-West Obiri-Ikwerre Airport Roads.

The governor also stated that the other request for N2bn was for micro/small and medium scale businesses for young entrepreneurs in the state.

The first letter, which was to seek the lawmakers’ consent for the N10bn loan, read in part, “As part of measures to stimulate development in states, the Federal Government has provided various stimulus packages, including the CBN Infrastructure/Capital Projects Loan for states to access and utilise some capital projects.

“You know the state government is ambitious about road development programmes. It has become expedient for Rivers State to take advantage of this fund to accelerate the completion of two key roads under construction. These are: (1) the Saakpenwa-Bori Road and (2) the Tam David-West Obiri-Ikwerre Airport Road.

“The construction of these two major roads designated to cost the state government over N14bn only, will be enhanced with this loan. Consequently, it is my pleasure to request the State House of Assembly to consider and authorise the state government to access the sum of N10bn only as Infrastructure/Capital Project Loan from the Central Bank of Nigeria to fund the completion of the two major road projects.”

However, the second letter from the governor read, “Request for Approval to Access N2bn CBN Micro, Small and Medium Scale Enterprises Development Fund, explained that the money meant to support the growth of small businesses in the state has already been accessed.

“As part of measures to support and stimulate the development of small businesses, Rivers State Government has accessed N2bn from the CBN Micro, Small and Medium Enterprises Development Fund for distribution to Rivers State people to support the growth of their small businesses.

“However, the process of accessing the fund requires a formal resolution from the State House of Assembly conveying approval of this facility.

“Consequently, it is my pleasure to request the State House of Assembly to consider and authorise the state government to access the sum of N2bn only from the CBN Micro/Small and Medium Enterprises Development Fund for the purpose herein indicated.”

Members of the House supported the request for loans, maintaining that it does not matter how much the state government was borrowing, provided the funds were used for the purpose for which they were borrowed.

Punch……

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