The Kwara chapters of the Action Congress of Nigeria and Alliance for Democracy are at loggerheads with the Peoples Democratic Party-led government in the state over the approval of a N10bn loan for the government by the state house of assembly.

The opposition parties are of the opinion that it was improper for Governor Abdulfatah Ahmed to obtain the loan, which they said the previous administration of Bukola Saraki had already appropriated money for its execution.

Ahmed had written to the assembly through its Speaker, Mr. Rasak Atunwa, seeking the House’s consideration and approval of the loan.

During the House debate on the loan, a member representing Oko-Ero constituency, Mr. Abraham Ashaolu, who opened the debate, had moved the motion for the House to grant the request. Another legislator, who represents Ilesha-Gwanara constituency of Baruten Local Government Area, Mr. Suleiman Idris, seconded the motion.

Also, a member representing Essa/Shawo/Igboidun of Offa Local Government, Mr. Hassan Oyeleke, appealed to the government to always sensitise and enlighten the residents of the government’s programmes for a clearer appreciation and to avoid misconception of the policies and programmes of the administration.

The House eventually approved that Ahmed should obtain N10bn loan from Guaranty Trust Bank.

But the state chairman, ACN, Mr. Kayode Olawepo, said the party was opposed to the loan reguest.

Olawepo alleged that the approval was hurriedly done by the House, which is dominated by members of the PDP.

He stated that apart from the state’s undisclosed debt profile, it was servicing the N17bn bond the Saraki administration raised for the provision of infrastructure.

He said the projects that Saraki took the bond for were almost the same that the House had authorised Ahmed to obtain the N10bn for.

He said it would be a rip-off for the residents if Ahmed obtained the loan.

Olawepo said, "In the first three months of Ahmed’s administration, between April and June, Kwara alone got more than N16bn as federal allocation. Triple that amount has accrued to the state since then; yet, the dearth of infrastructure, for which Kwara is notorious, remains just as bad.

"We cannot pin those huge funds down to any appreciable capital projects executed by this administration. Yet, the exact debt profile of Kwara remains the exclusive knowledge of PDP power brokers, no thanks to the former administration."

According to him, the repayment period is said to be 42 months at the rate of 15 per cent of interest.

Olawepo said, "The new loan, tagged legacy and continuity loan, is, in the words of the PDP government, for the completion of the same set of projects which President Goodluck Jonathan had inaugurated, and for completion of some road projects and Ilorin Urban System for which billions of naira had been sunk during the Saraki era.

"The people of Kwara cannot be subsidising unaccounted borrowings for which commensurate benefits have not been received by the people. While the act of borrowing is always known, the spending of the money borrowed has always been shrouded in secrecy. It is on this basis that we reject outright the request and House approval for another N10bn loan for phony projects."

Also, the AD said the decision of the state government to obtain the loan for execution of projects in the state was premature.

The party, in a statement by its chairman, Biliaminu Aliu, and secretary, Sunday Ologunde, claimed that the state’s treasury was already richer by about N20bn, adding that the government had no reason to obtain the loan to finance "unknown projects."

It argued that since the Saraki administration had borrowed some billions of naira to execute the projects, the government did not need to take another loan for the same projects so soon.

The statement reads in part, "The news that Ahmed wants to borrow N10bn on behalf of Kwarans to execute some projects came to us as a rude shock. The governor’s step to borrow such a huge amount of money is premature because the Federal Government had recently announced the release of N559.1bn as December 2011 monthly allocation to both states and local government areas in Nigeria. Certainly, over N10bn will be for Kwara State after the sharing.

"We also learnt that the government got about N9bn as November 2011 allocation, which means that the state government is richer by N20bn or so within two months. Then, why should our governor want to borrow N10bn to execute the unknown projects?"

But the state PDP Director of Publicity, Alhaji Ma’sud Adepimbe, said the position of the opposition showed that it did not understand the art of governance.

"How can anyone question the importance of the rehabilitation of hospitals, the establishment of an international vocation centre to empower our youths for employment, as well as the completion of the Ilorin Metropolis Water Reticulation Project, phase one, of which has been completed and is being enjoyed by the people of Kwara State?" Adebimpe said.

He said the projects, which the loan would be used for, were vital for state development. According to Adebimpe, projects such as the Cargo Terminal Apron and the International Diagnostic Centre are important components of the government’s plan to strengthen Kwara State’s emerging reputation as an investment destination and generate employment.

According to the Senior Special Assistant to the Kwara State Governor, Media and Communications, Dr. Muyideen Akorede, the projects, when completed, will increase the transformation of the state.

He said Ahmed had maintained continuity of the projects initiated by Saraki. He said long term planning had always been a major challenge of development in Nigeria and that the government felt it was not in the best interest of the citizens to abandon uncompleted projects initiated by its predecessor.

Akorede said, "The bane of development is often the lack of continuity, a trend the governor seems determined to halt, at least in Kwara State. Not only has he continued and completed projects initiated by his predecessor, Saraki, the governor used Saraki’s successes as the foundation for his own policy direction.

"For example, he has made agriculture, education and human capital development as well as infrastructural development key aspects of his core policies. He has shown a determination to pursue some of the high profile policies initiated by Saraki. A practical demonstration of the continuity strategy came in September 2011 when Saraki inaugurated road projects, which he started but were completed by Ahmed during the latter’s first 100 days in office."

Akorede said projects for which new funds had been obtained reflected Ahmed’s grasp of the fact that governance was a continuum. He added that the governor placed more emphasis on high impact development projects.

"For example, the proposed Internal Vocational Centre, Ajase-Ipo, for which the government plans to spend N1.4bn, connects with the governor’s declared objective of empowering youths, as well as making education more relevant to market and economic needs of the state," he said.

He stated that when completed, the centre would provide internationally recognised qualifications such as City and Guild’s based on a curriculum designed in consultation with the Nigerian Employers’ Consultative Association.

The SSA said the collaboration was designed to ensure that the graduates would be rapidly absorbed on graduation or create businesses for which there was an existing need.

According to him, the targeted beneficiaries of the centre are senior secondary school leavers and possibly polytechnic and college graduates, as well as trained technicians and artisans, who will be groomed.

"Still in the area of education, the fresh funds are tailored towards enhancing the infrastructure at the Kwara State University such as its Faculty of Engineering, which is in a collaboration with the Massachusetts Institute of Technology, one of America’s most prestigious academic institutions.

"Within its short existence, the university has showed great potential for growth with its modern infrastructure and faculties, which boast of internationally-recognised scholars, especially from the US and Europe," he said.

He stated that apart from all this, the government was set to begin the implementation of other high impact projects, especially in the health sector, one of its core policy areas.

Notwithstanding the explanations put forward by the government, political observers, especially those in the opposition, still feel that the Ahmed administration may not be far from being profligate if, at the end of the day, the taxpayer does not feel the impact of the spending of the N10bn loan; more so, when it has been alleged that duplication of projects seems to be the trend in the state.