By Ogar Monday; House of Assembly Correspondent
The Cross River House of Assembly has given the Governor, Senator Ben Ayade clearance to access NGN20 billion in funding through a bond facility.
The clearance follows the approval of the report of the adhoc committee led by Honorable Eteng Jones (PDP Yakurr2) presented on the floor of the house during plenary on Wednesday.
The State had on November 23, 2017 written the assembly through the Secretary to the State Government.
And, Mr. Jones said : “The letter specifically conveyed a request for the house to authorize the Cross River Government to issue up to N20 Billion worth bonds under the existing N40 Billion bond issuance programme.”
He added that: “The precarious situation the current administration faces in terms of funding are well known Mr. Speaker. Right from the time of delisting of Cross River state from the list of oil producing states, inflows from federal sources have continued to dwindle. The situation is made worse by low returns from internally generated revenue.”
Furthermore, he said that: “Again, as stated in the request, proceeds from the bonds issuance programme are to be used to finance government projects and programmes.
“For the avoidance of doubt, the Deep seaport, super highway and haulage city will be given priority. All of them are heavy revenue generating entities. Completing the projects will reduce over reliance on allocation from the federation account.
“Arising from the assurance of the debt management office, the committee is convinced that obtaining further N20 billion bonds will not jeopardize the state financial stability.”
The speaker, Honorable John Lebo (PDP Abi) then put the adoption of the committee report and recommendation to voice vote which the members voted in support.
NB: The number ‘8’ has been replaced in paragraph three with the number ‘7’ to reflect the true date.