Anambra State Governor, Prof. Chukwuma Soludo, has revealed that the state rejected a World Bank Loan because the terms and conditions were “not favourable” to the people of Anambra.
Soludo made this disclosure during a tour of the ongoing Government House project in Awka North Local Government Area.
The World Bank loan in question is part of the Bank’s development financing program aimed at supporting economic growth and development in Nigeria. The loan was offered to several states in Nigeria, including Anambra, to support their development projects.
Soludo stated that the loan’s terms and conditions were not in the best interest of the people of Anambra. He noted that the loan would have burdened the state with debt and undermined its economic independence. The governor emphasized that he refuses to take loans that would burden the state’s future generations.
*Key Features of the Rejected Loan*
– *Loan Amount*: The loan amount was not disclosed, but it is reported to be in the hundreds of millions of dollars.
– *Interest Rate*: The interest rate on the loan was reportedly high, making it unsustainable for the state.
– *Repayment Terms*: The repayment terms were also reportedly unfavourable, with a long repayment period that would have burdened the state’s finances.
Soludo highlighted that the state has not borrowed any money to fund the construction of the ongoing Government House and other projects. Instead, he vowed to judiciously utilize every naira entrusted to him for the benefit of the people of Anambra. The governor also noted that the state is exploring alternative funding sources, including public-private partnerships and grants from international organizations.
The rejection of the World Bank loan has significant implications for Anambra State. The state’s decision to reject the loan demonstrates its commitment to fiscal responsibility and economic independence. However, it also means that the state will have to explore alternative funding sources to support its development projects.
The rejection of the World Bank loan by Anambra State is a significant development that highlights the state’s commitment to fiscal responsibility and economic independence. While the rejection of the loan may have short-term implications for the state’s development projects, it demonstrates the state’s long-term commitment to sustainable economic development.