Group to CBN: Don’t Give Any Fresh Loan to Gombe Government

• A group, Gombe Good Leadership Association has advised the Central Bank of Nigeria to be wary of giving out loans
• The association specifically asked the apex bank not to grant any loan request from the Gombe state government
• According to the group, the state government is already in serious debt as a result of frequent borrowings

Gombe - The Central Bank of Nigeria (CBN) has been urged not to give any fresh loan to the Gombe state government by a group known as Gombe Good Leadership Association.

According to the group, granting any loan now to the government will bury the state under a mountain of debt from frivolous borrowings by the administration of Governor Muhammadu Inuwa Yahaya.

In a statement sent to Legit.ng on Friday, October 22, and signed by Mohammed Salisu Abdullahi, leader of the association, the group called on the apex bank to resist any pressure from Governor Yahaya to grant any new loan request.

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Part of the statement read:

“Governor Muhammadu Inuwa Yahaya has plunged Gombe state into a quagmire of crippling debts. Nothing is more reckless than borrowing money to repay a debt or cope with the crushing effect of existing debts.

“The public will recall that we have recently made a press release concerning the spate of reckless borrowing by the Muhammadu Inuwa Yahaya-led administration of Gombe state.

“Just when we thought we had seen it all from the governor, a copy of the letter by the governor to the Honourable Speaker of the Gombe state House of Assembly dated October 20, 2021, with reference number GO/GD/FED-98/V.I proved us wrong.

“In the letter, the governor is requesting for the resolution of the Gombe state House of Assembly allowing him to access the federal government’s bridging finance facility in the sum of N18,746,059,992.57bn.

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“If the governor is allowed to obtain the N35bn debt that has been hurriedly approved by the Gombe state House of Assembly on October 13, 2021, and the proposed debt of N18,746,059,992.57bn for which it is seeking approval in his latest letter to the Speaker, the governor would have succeeded in amassing a total debt of over N109bn in a little over of two years of his administration.

“There is no gainsaying that the debt service to the overall revenue of Gombe state is excessive and inimical to the economic and developmental aspirations of the state.

"We, therefore, call on the Central Bank to resist any temptation to further advance any loan to the borrowing governor of Gombe State who is hell-bent on mortgaging the state to satisfy his selfish ends.”

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Source: Legit.ng