Otti defends $125m IDB loan

Governor Alex Otti of Abia State has assured residents that the $125 million loan recently approved for the state from the Islamic Development Bank (IDB) comes with favorable conditions.

Speaking during his monthly media parley on Friday in Umuahia, Otti said there was no cause for concern, describing the loan terms as “generous.”

“There is nothing to worry about. The conditions are generous and I was actually surprised when I reviewed them,” he said.

Earlier the Federal Executive Council had on Wednesday approved the facility to finance the Abia State Integrated Infrastructure Development Project. The funds, however, have not yet been accessed.

Otti noted that the only challenge would be the impact of exchange rate fluctuations.
“If the loan had been taken before May 2023, the exchange rate was below N500. Today, repayment would require almost three times that amount. That is why the prudent deployment of the funds is critical,” he explained.

On ongoing projects, the governor said his administration had completed 120 of the 200 primary healthcare centres earmarked for rehabilitation, while work was ongoing in all 22 general hospitals across the state. He disclosed that Obingwa General Hospital would be inaugurated before the end of the month.

In education, Otti said 221 schools were undergoing renovation in the first phase of rehabilitation. He added that the implementation of free and compulsory education from primary to junior secondary school had triggered massive enrolment in public schools.

He further revealed that about 50 roads were being handled through direct labour, while 30 others were under contract. According to him, recent funding challenges had eased following the passage of a supplementary budget by the State House of Assembly.

The governor also highlighted interventions in electricity, agriculture, and other critical sectors, reiterating his administration’s commitment to infrastructure and human capital development.