Governor Obi to take $75m loan

Constant government borrowing for state’s sustainability has recently become fashionable in the country, with the President and state governors taking to the tide.

Just few weeks ago, the Association of Senior Civil Servants of Nigeria (ASCSN) challenged the National Assembly to stop the Federal Government from borrowing to execute projects in the country.

In a similar way, the Campaign for Democracy (CD) in the South-East has warned Governor Peter Obi of Anambra State against his resolve to borrow $75m (about N12bn) for erosion and flood control in the state.

In a statement issued by the group’s Chairman, Mr. Uzor Uzor, the state governor’s decision to take the loan to check erosion when it had not used up to N100m from the N500m given to it by the Federal Government to rehabilitate flood victims was totally flawed and unwise.

The statement reads, “From our records, Anambra State had not utilised up to N100m from the N500m released to it by the Federal Government.

“It is very unnecessary for the governor to go ahead to borrow this amount of money even as his administration has been doing well managing the state lean resources for over six years now.’’

CD, on the other hand, called on the Governor to bear in mind that during his electioneering, he promised the people of the state that he would not borrow money to run the state.

It quoted the governor for having said, ‘Any time I borrow or school children go on strike, I would resign.’

It added, “Now that there is high rate of unemployment, which had led to insecurity in the state; we urge the governor to reduce crime by opening more workplaces to engage the youth.

“Instead of embarking on this excessive venture of borrowing such a huge amount of money, we urge him to manage the ecological funds given to the state by the Federal Government to tackle the erosion menace.

“The borrowing would bankrupt the state and damage its economy further.”