Abia goes for N30b loan from World Bank
By Chimex Ndubuisi
The Abia State government has gone to the World Bank to secure a loan facility of $200 million.
Deputy Speaker of the House, Chinedum Elechi said this in Umuahia during his monthly press briefing.
Elechi, who chairs the Committee on Information, said the legislature has given approval to the governor to go ahead and secure the facility.
Elechi explained that the reason for using the World Bank was that its conditions were better than the Nigerian capital market.
He said the market would put the state through too many hurdles.
His words: "We are unable to access funds from the bond market. The conditions are too stringent; the World Bank facility has provided the state government with a comfortable alternative to source for funds to develop the state".
It would be recalled that the House had earlier passed into law the Bond Bill authorizing Governor Theodore Orji to approach the bond market to source for N30 billion to meet the developmental challenges in the state.
Elechi said the House has given approval for the state to borrow N700 million from a bank to enable it pay teachers' salaries and allowances.
He said there was nothing wrong in government borrowing money to meet its needs.
The deputy speaker also spoke on the alleged rift between Orji and his predecessor, Orji Uzor Kalu.
He said nothing could be further from the truth as the "faceless groups" engaging in media wars were not representing any of the principals they claim to be fighting for.
“Let me make it clear to everybody including those some elements are using to say that there is no misunderstanding between the state governor and his predecessor. I read in newspapers and magazines that the duo had a rift and I want to place it on record that there is a cordial relationship among them. It is like a father and son relationship”.
Elechi said the House had passed a vote of confidence on Orji.
“In as much as we believe our governor has really showed us that he is a father and we owe him a duty and that is to support him for him to lead us to the promise land. This is not the time to criticize him but to give him a maximum support. He cannot do it alone without our backing”.
He urged the governor to go ahead with his development agenda and disregard detractors seeking to create imaginary rift between him and Kalu.
