Delta Assembly Approves Okowa Governor’s N150 Billion Loan Request 13 Months Before End of Term

The Delta State Assembly on Tuesday approved the request of the state governor, Ifeanyi Okowa, to borrow the sum of N150 billion in favor of the state government.

The loan, which is a bridge financing facility, comes barely a year before the end of the term of the current state administration.

According to NAN, the governor’s request is contained in a letter which was read to the plenary session of the assembly by the speaker, Chief Sheriff Oborevwori in Asaba.

Why the State Government Borrows

Okowa said the requested credit facility, which has Zenith Bank PLC as “lead arranger, would be primarily to settle outstanding certificate arrears earned by contractors with respect to the completion of certain ongoing critical legacy projects awarded by past and present state administrations.

The governor also said a portion of the loan would be used to support outstanding pension liabilities to state and local government pensions under the contributory pension scheme, amounting to $20 billion respectively. naira and 10 billion naira.

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The governor said:Speaker and members of the State House of Assembly, I wish to inform you that the State is awaiting reimbursement from the Federal Government, namely oil subsidy payments made without recourse to the 13% diversion due to oil-producing states from January 1999 to November 30, 2021.

“Delta State’s share in this amounted to N270.6 billion.

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“Keeping in mind the administration’s determination to finish strong, there is a need for the state to capitalize on the reimbursement to cover the backlog of unpaid certificates earned by contractors with respect to the completion of certain legacy projects. ongoing criticism attributed by past and present administrations..”

The Majority Leader of the House of Assembly, Chief Ferguson Onwo, moved that the motion to approve the credit facility was moved by the Majority Leader of the Assembly, Chief Ferguson Onwo.

The motion which was passed unanimously by the house, assembled when it was put to a voice vote by the Speaker, was seconded by the Chief Whip, Ms. Pat Ajudua.

What you should know

  • Recall that earlier in February 2022, the Delta House of Assembly approved Governor Ifeanyi Okowa’s request for a N12 billion bridge financing facility for the state from the Central Bank of Nigeria (CBN) to cushion the effect of the resumption of reimbursement of federal government intervention facilities. at the end of the abstention period.
  • In December 2021, the Delta State House of Assembly approved a request by Governor Ifeanyi Okowa for a N20 billion facility from Fidelity Bank Plc to fund the state government’s 5% stake in the offshore UTM project Limited Floating Liquified Natural Gas (FLNG)

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