The Akwa Ibom State House of Assembly on Tuesday gave approval for the state government to obtain a loan of N10 billion from the Excess Crude Account.
The approval followed a letter from Governor Udom Emmanuel, with reference number GHU/AKS/S 104/V.4/702, dated September 15, 2015, seeking the approval of the House for the loan.
The letter, which was read by the clerk, Mandu Umoren, was introduced to the assembly by Usoro Akpanusoh (PDP-Esit Eket/Ibeno) and Chairman, House Committee on Appropriation and Finance.
According to the letter, the loan will enable the state government to invest in infrastructure development projects such as roads, flood control and drainage.
The letter reminded the lawmakers that at the National Executive Council meeting of June 2015, it was resolved that the money in the ECA, usually shared among states, be kept for states that had needs to access it as loan.
After careful deliberation on the matter, the House said the loan was necessary in view of the fact that it had single digit interest of nine per cent and 20 years repayment period.
The Speaker, Anieakan Uko, directed the clerk to communicate the approval of the House to the governor for necessary action.
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