Date: 2012-09-23

The Kwara State government has maintained that it remains financially strong and capable of meeting it's obligations to the people including the provision of social and capital infrastructure. Reacting to the Central Bank Of Nigeria(CBN) directive barring the state from obtaining fresh bank loans, Senior Special Assistant on Media and Communications to the Governor, Dr Muideen Akorede, denied claims by the state chapter of the Action Congress of Nigeria(ACN) that the apex bank's action indicates the state is insolvent. The state government pointed to the number of implemented and on-going social and physical infrastructural projects as an evidence of the state's continuing financial strength.

According to Akorede, "We assert that Kwara state remains financially viable and capable of meeting its financial obligations including huge infrastructural projects, both concluded and on-going. Our position is that the CBN's action was informed by a communication gap which government is trying to bridge. To set the records straight, the said loan was obtained by Ministry of Finance Incorporated(MOFI), the erstwhile investment body, a separate legal entity, to buy shares in an effort to shore-up IGR. Expectedly, the loan was subsequently secured against the shares. Also, the outstanding figure includes the principal and interest accrued.

"Unfortunately, due to the stock market crash, MOFI's ability to repay was heavily impaired. Furthermore, the said loan and shares so purchased have since been taken over by Asset Management Corporation of Nigeria(AMCON) which has the option of selling the shares to recover the said loan. In addition, Harmony Holdings Ltd, the state's new investment arm which took over the assets and liabilities of MOFI, is in discussions with AMCON to resolve the issue amicably.

"Although the stock market crash unfortunately affected government's well-intentioned efforts to shore up IGR, outstanding loan amount and the CBN's action does not indicate insolvency.

"The people of Kwara can see our laudable ongoing projects including the rehabilitation of five general hospitals, massive urban and rural roads, rehabilitation of Federal Government Roads,phase 2 of Ilorin Water Reticulation project, Rehabilitation of Pepele Waterworks, rural and urban electrification, rehabilitation of 200 blocks of secondary school classrooms etc. These projects indicate that Kwara State is financially-healthy. The ACN is obviously alarmed by the Ahmed administration's giant strides and is engaged in a futile bid to diminish those life-transforming projects.

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