By Samson Ezea
Since the sudden and successive global economic recession which followed the sudden crash in the price of crude in 2014, coupled with the outbreak of the Covid 19 pandemic in 2020 that crippled the global economy, most economies of the world, including that of the developed countries have been struggling to stay afloat.
Governments of different countries have adopted different measures, approaches, and plans to stem the tide of the glaring financial and economic challenges facing them. Governments at different levels have had reasons to borrow or take loans to embark on developmental and life changing projects, amongst others. Borrowing money or taking a loan is synonymous with government and governance globally provided due process is followed to a logical conclusion.
I was taken aback and disappointed reading on social platforms some needless, mischievous and ignorant fuss, propaganda and hullabaloo by some Labour Party social media goons and opposition over the N170b loan approval sought by Governor Peter Ndubuisi Mbah of Enugu State for capital projects which has been expeditiously approved by the House of Assembly members with commendations and clarifications.
My shock was that the purveyors of the misleading, inciting, and fallacious snippets about the loan made everything look as if it was secretive, unconstitutional, and against the tenets of democratic practice.
They made it look as if Mbah had committed impeachable offence by seeking loan approval from the House of Assembly for capital projects in the face of daunting economic challenges. These were the same people who have been peddling all sorts of false information and unfounded allegations against Governor Mbah, accusing him of not embarking on any major capital project since assuming office. Why the furore over his request for loan approval from House of Assembly for capital projects?
There is absolutely nothing wrong or illegal about Governor Mbah's sought for loan approval and the House of Assembly members approving it.
Of much interest is the fact that the terms, conditions, and breakdowns of the loan are self-explanatory and people-oriented. It is all for addressing age-long capital and infrastructural deficits, which Governor Mbah's administration is determined to tackle completely before leaving office. That is why the House of Assembly members, including those from the Labour Party whose members have been trying to make mountains out of molehill uniamously approved it.
Governor Mbah is not the first governor to seek for a loan approval from the State House of Assembly and will not be the last to do it. This may not and will not be the first and last Governor Mbah will or may seek loan approval. He is at liberty to do so as the need arises provided it is for the overall interest of the people and that due process is followed.
For those who are or pretend to be suffering from selective amnesia, it is in the public domain that Prof. Chukwuma Soludo, who on the assumption of office inherited debt of N109bn, sought and got approval of N100bn loan from House of Assembly on July 22, 2022 for capital projects.
In the same vein, Governor Alex Otti of Abia State, who said he inherited N191bn debt from his precedessor, sought and got approval from House of Assembly to take loans of N150bn from African Development Bank. Both Anambra and Abia are oil producing states that enjoy 13% derivation apart from monthly federation allocation and Onitsha and Aba as their commercial nerves with enormous revenue.
What should be the preoccupation of the opposition especially the Labour Party social media goons and the people is not to criticise the loan or misinform the people about it, but to monitor its usage in provision of critical infrastructure it was meant for, for the overall benefits of the people and development of the state.
There is no way Governor Mbah can achieve and execute all his ambitious developmental plans, projects, and programmes for the state without adequate funds. Borrowing to fund critical capital projects is a step in the right direction. If the enormous financial resources needed by Governor Mbah's government to execute capital projects are available, he wouldn't have gone for loan approval. This is the simple truth.
