Mr. Akpabio wants to use the loan to offset another loan.
This is contained in a letter sent by the governor and read by the Clerk of the Assembly, Mandu Umoren, at the floor of the house.
M. Akpabio said that the loan would be used to offset the loan collected from United Bank for Africa Plc. (UBA) in 2012.
“I, hereby, request for your speedy consideration and approval of the house of my request to borrow $500 million dollars (about N80 billion) from the Standard Chartered Bank International.
“The proceeds of this loan facility will be utilised to offset all outstanding loan commitment of the State Government to UBA Plc.
“This will drastically reduce the applicable interest that government will have paid on the facility from UBA Plc which runs into billions of naira,” he said.
The governor further said that the loan from UBA attracted interest rate of 18.5 per cent, while standard chartered bank international loan rate is 8.19 per cent.
It would be recalled that the house on May 2012 approved the borrowing of N50 billion to execute ongoing infrastructure development in the state.
The Speaker, Samuel Ikon, directed that the letter be referred to the House Committee on Appropriation and Finance, for in depth work and report back to the house as soon as possible.
Mr. Akpabio has been in the news for his seemingly extravagant spending of public funds for private and political purposes. The governor is notorious for dashing millions of naira as gifts to individuals despite the level of poverty and unemployment in the state. His party, the Peoples Democratic Party, has however, defended him saying he is not a spendthrift but a benevolent and kind hearted governor.
The Akwa Ibom Governor was recently chosen as the Governor of the Year by Leadership Newspapers.
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