Akwa Ibom State Government is in the works to secretly obtain a N150 billion loan, TheMail Newspaper can authoritatively report.
The planned multi-billion naira loan our government house sources confided would be obtained under the cloak of ” other exceptional income: 13 per cent derivation revenue arrears”.
Our Sources revealed that the State Government is about to use for the third time the $2.258 billion refund judgment to Akwa Ibom State as a guarantee to acquire a commercial bank loan without the public being in the know.
Checks into the standing order of the House reveal that the House of Assembly had tinkered with her standing orders thus making for loan requests from the Governor to be considered outside public glare. Loan requests from the executive usually meet the State Assembly in the form of a message from the Governor.
Although the new standing order is yet to be printed and put to use fully, our sources at the State Assembly say the House leadership would rely on the amended standing order of the House to accede to the Governor’s request.
The Akwa Ibom State House of Assembly in December 2020 had passed on the floor of the House an amended standing order that makes provision for any message of the Governor to be considered at the executive section of the State Assembly if the legislators deem fit.
The standing order before the December 2020 amendment under Order 2 rule 2 (1) of the House tagged as ” Message from Governor” notes ” The Speaker shall immediately after prayer or as soon as any member has taken the Oath of Allegiance read to the House any message addressed to the House by the Governor”.
However, in the amended version which created sub-rule (4) the standing order reads that a message from the Governor can be deliberated during an executive session if the House of Assembly deems fit. ” A message from the Governor can be deliberated at the executive session if the members deem it fit and proper to be so considered in exceptional circumstances”.
TheMail has gathered that some members of the leadership of the House of Assembly in a meeting recently with the Governor consented that they would authorise the loan secretly so far their political interest in the 2023 election is protected and they also get a bite of the dark loan. Yet, it was agreed that this particular loan approval would not be discussed on the floor of the house else it would spark public outcry.
Yet, checks by TheMail Newspaper into 2022 approved budget shows that if the State Assembly gives the N150 billion approval of the loan under ” Other Exceptional Income: 13 per cent derivation revenue arrears”, they would be engaging in extra-budgetary acquisition as N15 billion is the budgeted revenue expectation of this revenue source.
Nonetheless, last year, the State had acquired N171.2 billion on this subhead despite having an N61.10 billion approved budget on the revenue item.
It was only in September 2021 after receiving the funds that the state revised its expected revenue on this budget item from N61.10 billion to N193 billion. Our sources disclosed that a revised budget is expected after the loan is drawn down.
The reason for this loan, our sources who are privy to the plans confided, is to be used to run the 2023 elections and also enable the governor to have an upper hand in the payment of delegates to ensure his succession plan flies.
Interestingly, this is not the first time the administration of Governor Udom Emmanuel would be acquiring loans secretly and under the mask of a 13 per cent derivation refund.
This action which has gradually become a dark trend in the State dates back to July 2021.
Background into the Multi-Billion Loan Opening
It could be recalled that in a string of Federal High Court judgments in 2021, the Federal Government had been ordered to pay $2.258 billion to Akwa Ibom State, $1.638 billion to the Delta State, $1.114 billion to Rivers State, and $951m to Bayelsa State, as share of recalculated oil derivation revenue in line with Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act which obligates the federal government to adjust the share of the Federation in the additional revenue if the price of crude oil at any time it exceeds $20 per barrel.
Akwa Ibom State’s share of $2.258 billion is N926.9 billion at the 2021 third-quarter exchange rate of N410.5/$US.
From the exceptional income expected, Governor Udom Emmanuel’s administration had deeper and surprising plans.
The N184.05 billion obtained Under false Cover
Instead of waiting like the other three states of the Niger Delta which the judgment covered, Governor Udom Emmanuel devised a means to tap into the expected billions of naira even without receiving payments directly from the federal government.
That strategy was to use the judgment as a guarantee to obtain secret loans from commercial banks. Our sources revealed that the loan deal was struck with a bank. However, the reporter could not independently verify the information on the bank the state struck the deal with.
Yet, one of our sources mentioned that the Governor is using the strategy so that his administration can enjoy part of the refunds since he envisages that the tranches of payments of the refunds may not come in the life of his administration. Our Source also explained that GovernorEmmanuel was the brain behind the court case against the Federal Government hence the reason he is poised on drawing down the funds during his administration.
Although in November 2021, Policy Alert, a Civil Society Organisation promoting economic and ecological justice in the Niger Delta relying on the 2021 third-quarter budget implementation report of Akwa Ibom State had burst open the first can of worms that the Akwa Ibom State Government had secretly received N171.2 billion 13 per cent derivation refund, investigations reveal that the real source of the money was a commercial bank loan which the State government used the 13 per cent derivation judgment as a guarantee and a front in its financial statements.
Policy Alert had queried the strange silence from the executive even after the enormous amount had landed the State coffers stressing that it was a red flag ” This leaves a huge gap on transparency. We were disappointed that the Governor’s 2022 budget speech was silent on this development when he reviewed the performance of the 2021 budget”.
