As Anambra Takes the N10B Loan

Jan 08, 2016

On Thursday the 26th day of November this year, the Anambra State House of Assembly gave approval to the Anambra State government's application for a loan facility of N10 billion to be appropriated into projects.
In approving the loan application which came as an executive bill, the House set up a committee to advise the state government on its proper utilization which would include ensuring that the loan would be applied to revenue yielding infrastructural projects.
This loan is coming in the wake of controversies generated by the N75B the previous government said it left for the incumbent regime. The incumbent regime however denied receiving all of the the money, claiming it was just N9B and a huge deficit.
This in turn had led to the former governor, Peter Obi, publishing the names of the banks where the money he said he left was lodged and their account numbers.   
Obi's camp also claimed that Gov Willie Obiano's allegation that he did not inherit N75B was a ploy at justifying the massive borrowing about to take place.
It was indeed a week that polarised the state into two camps, such that it threatened to generate bad blood.
However all that happened during what we call the mad week has come and gone and finally it has been confirmed that the Obiano administration is indeed taking a loan of N10B.
There is indeed nothing wrong with taking loans. What matters is the ability of the borrower to repay such a loan and ensuring that it is applied to worthwhile projects as in the present case in Anambra State.
The Anambra State government had earlier through the secretary to the state government, SSG, Prof Solo Chukwlobelu, assured that the loan would be applied judiciously on new, worthwhile projects. We hope that this remains the case.
Our hope is hinged on the fact that often times governments in this part of the world borrow money only to divert it to self-serving projects, with some even using it to finance political ambitions. Worse still, such loans, as well as crippling the concerned states, create problems for incoming administrations. This is why sometimes loans make people uncomfortable.
But while some states have mismanaged their loans, there are others that have used such to transform their economies and provide democracy dividends. Thus being that the Obiano administration has assured the people of the state of their capacity not just to pay back the loan but to use it judiciously, the people of the state have no option but to believe that they are in safe hands.
While we commend the Anambra State government for telling the people of the state what they intend to do with the loan, we however urge it to always let the people know each time they require such facility rather than wait until speculations are made in the social media and other news sources, for after all, the people have the right to be told how their affairs are to be managed.



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