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Abia to borrow $125 million from Islamic dev bank – Otti

…denies borrowing N144 billion

…promises to wipe out pension, workers’ salary arrears by end of March



Governor Alex Otti has revealed that Abia State Government, had received approval for a $125 million loan facility from Islamic Development Bank, but added that the state had not drawn the loan.

He said the necessary documentations were being done before the funds would be drawn.

Otti who disclosed this while fielding questions from newsmen during a media parley in Umuahia Monday night, also said that the State had received approval for loans from another bank although he did not disclose the name of the bank.

He further said that the state had been receiving loan offers from many other commercial banks but added that non of the facilities had been drawn.

According to him, even though the state needs loan to finance its 2024 budget, it will not rush to withdraw any loan until it is needed.

“We are financially enlightened as a state that we will not draw any loan until we need it “, Otti said.

Governor Otti dismissed as untrue, reports in some quarters that he had borrowed N144 billion.

He said that the peddlers of such unfounded reports” are either ignorant or mischievous, or both”.


Otti explained that although he had plans to go for loan, the state under his watch had not obtained any loan so far contrary to blackmail by his detractors.

“Yes, there are plans to secure loan and they are at maturity stage”, he said.

He urged members of the public to disregard blackmails being peddled against his administration by popularity seekers, and those still nursing the wound of election losses.

On the backlog of pension arrears and workers’ salary arrears which accumulated during past administrations, Otti, restated commitment to wipe out the arrears once and for all.

Apparently referring to the loan approvals, Otti said, “We will soon resolve the lingering pension issues by the end of this month. We have secured approvals, and very soon the pensioners will hear from us”.

The Governor had during his inaugural speech, promised to wipe out pension arrears and salary arrears of workers before the end of December 2023.

He later shifted the date after the biometric data verification of both the workers and pensioners.

According to him, the state needed to prepare well due to the huge amount of funds involved.

On the complaints that some workers were not being paid, the Governor said he had scheduled a meeting with the Accountant General of the state and all those involved in payment of salaries with a view to sorting out the reason for the omission.

Otti who said Abia had about 66,000 workforce after the verification exercise, explained that majority of the workers now receive their salaries on the 28th day of every month.

He said only about five per cent of workers were affected by the omissions, but assured that efforts were on to resolve it.

” The money is sitting in the bank, and whatever is the problem will be resolved because I will sit with those involved so we can have it sorted out”, the Governor assured.

On wage award, Gov. Otti said he was waiting for the report of the committee set up for that purpose, assuring that as soon as the report is presented to him, he will not hesitate to make a pronouncement on that.

He, however, warned that as Government was making efforts to enhance the welfare of workers, workers must reciprocate with commitment to duty.

The Governor explained that the policy for workers to clock in and out was aimed at monitoring their attendance and dedication to duty, insisting that any worker who fails to score up to 70% attendance does not deserve to be paid for the month.

Otti appealed to residents especially those in Aba to desist from blocking water channels with refuse to avoid flooding.

He, however, expressed optimism that with the current efforts of his administration to desilt blocked water drainages, heavy flooding would not be witnessed in Aba again unlike before.

He explained that he had directed for the immediate evacuation of a mountain of refuse that blocked water channels around Ariaria International Market, adding that efforts are on to channel flood waters in the city into Aba River.

The Governor, however, urged residents to comply with sanitation laws to keep the state clean, warning that very soon enforcement would commence across the cities.

Responding to a report that termites were eating up books in the state’s library, expressed concern over the drop in reading appetite of youths , and promised to not only digitaise the state library but revive the reading culture of the people.

Otti said his Government had robust plans for massive farming to address food insecurity in the state.

He also said that the state would soon take delivery of its grain consignment from the Federal Government, assuring that the palliatives will be equitably distributed to the deserving residents.

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