Nigeria – Governor elect of Cross River State, Prof. Ben Ayade, has concluded plans with US investors to wipe out the state’s N123.9 billion total debt profile, The Guardian reports.
The governor is already holding talks with the investors, who arrived Calabar since April 14 and they proposed to invest over $600 million to buy off the state’s N123.9 billion huge debt.
“We are going to do asset assessment to look at the resource base of Cross River state so that we can take off over $600 million loan that is about N120 billion to free us from the burden of running an interest regime of over 26 percent” the governor said.
“The foreign investors coming are third parties, (Moga Stanley), huge financial dealers who hold private equity and look for where they can invest. In America if you have an interest of six per cent, it is a huge business for who owns the capital. The law puts you on venture capital of 1.5 percent,” he explained.
“So if they take off $600m loan and take it off from a bank that Cross River state is paying 26 percent without some default rates in addition and they are making six percent kill and they have our forest over one million hectres of forest reserve for the production of ply boards and veneer for export with a condition of planting three trees for everyone they fell and they see that this forest is the second thickest forest to the amazon in the entire world they will come in,” he added.