Abia: Otti Made Right Decision To Obtain $125m Islamic Dev Bank Loan

Bashir Ahmad, an aide to former President Muhammadu Buhari has applauded the decision of the Government of Abia state to borrow $125 million from the Islamic Development Bank.

Governor Alex Otti had during a press conference on Monday, disclosed that the state has indeed taken the loan to develop critical infrastructure in the state.

His admonition followed criticism on the social media from the governor’s critics who said decision was wrong because Abia is a ‘christian’ state considering the population of the adherents of the faith in the state.

Other critics of the state governor also slammed him for taking loan in the early days of his government, compared to Anambra, a neighbouring state where Governor Charles, after two years in office has yet to obtain any loan facility.

Governor Soludo had during the commissioning of projects to mark his two years in office, said the state had yet to obtain loans.

But endorsing Governor Otti’s decision to obtain the loan, Ahmad said the loan would assist the state in providing key infrastructure capable of touching the lives of the people of the state.

He said the fact that the loan is an interest free facility is a plus for the governor in his quest to ensure rapid development of the state.

The former presidential aide who posted on his X handle on Wednesday said “Governor Alex Otti has indeed made a wise decision” the $125 million loan IDB.

According to him, ‘Islamic banking, being interest-free, aligns with the ethical guidelines of Islam, which perceive money as a means of exchange rather than a commodity that can generate income through interest. This principle ensures that financial transactions contribute directly to economic activities and development without the burden of interest, which can sometimes be prohibitive.

“Islamic finance emphasizes partnership and the sharing of profit and risks. This approach encourages a sense of mutual responsibility and ethical investment.

“In the context of Abia State, the utilization of Islamic finance can provide several advantages. It can enable the state to undertake essential capital projects without the long-term financial strain that interest-bearing loans might impose.”

May state governments have obtained loan from the bank, which is one of the biggest creditors to the Nigerian Government.