The Akwa Ibom State House of Representatives has approved Governor Udom Emmanuel’s request to raise N150 billion from the money market to finance ongoing projects in the state.
The request was discussed by members of the House of Representatives on Tuesday during plenary.
The letter said the state government would procure a “financial instrument” totaling N150 billion either through “promissory note discounting” or “direct credit substitute” to facilitate the completion of projects.
Governor Emmanuel explained in the letter that the instrument would not require an irrevocable standing order or guarantee so that no monthly deductions would be made from federal allocations to the state.
House Speaker Sir Udo Kierian Akpan, who led the discussion, noted that the governor had assured that he intended to “create” the needed money in the money market and not borrow it.
He said, “To me, the first thing the governor has tried to make clear to us is that the instrument he will raise is not a loan. He has what it takes to raise the money in the market without straining the state’s assets.
“The second thing is that the instrument does not require a deduction of allocations to the state. If the money is not deducted from the Federation Account, it means we don’t have a problem, because the problem would have been how to get the money back.”
He added, “The governor is a financial expert and a banker, he knows how to get the money from the banks. He knows how they trade, he knows how they get IOUs, and he knows how they fix the financial instruments.
“After looking at what he wants to do with the money, I believe it is something that is good for the people of Akwa Ibom. All we can do is to ensure that the various ministries are properly supervised to ensure that the projects are completed on time and Akwa Ibom benefits from the money coming to the state.
Meanwhile, all the MPs agreed to the governor’s motion and said they support the motion as they want to be part of the story of a good legacy for the people of Akwa Ibom.