Sokoto Assembly approves Tambuwal N 28.7 billion loan request
The Sokoto State House of Assembly on Tuesday approved Governor Aminu Tambuwal’s request to access two loan facilities worth N 28.7 billion for the state.
Nigeria’s news agency reports that the development followed consideration of the two letters sent to the Assembly by the Governor by the Committee of the Whole, as requested by Bello Ambarura.
NAN also reports that the requests include the Federal Government Response Facility of N18.7 billion and N10 billion on behalf of the state’s 23 local government councils.
Ambarura said the federal government response facility was among the 656.1 billion naira approved by President Muhammadu Buhari for the 36 states of the federation.
He said, “The facility aims to help states cushion the repayment effects of the current federal government intervention on budget support.
“It also includes a loan backed by a gross surplus and a salary arrears rescue facility.
“In addition, it will allow the state government to close the gap in the forecast shortfall and increase current budget arrangements in some of the economic sectors.”
The legislator added that the funds would be used to finance overdue payments for investment projects and certain expenses essential to economic development.
He said the condition of the loan facility, as specified by the Central Bank of Nigeria, was to include a six-tranche disbursement mode, a term of 30 years and an interest rate of nine percent per annum.
Other conditions, according to the legislator, are a two-year moratorium, a monthly repayment method and an irrevocable standing payment order.
Regarding the N10 billion loan requested from Fidelity Bank Plc on behalf of the state’s 23 LGAs, Ambarura said it was aimed at accelerating the socio-economic development of the boards.
“The loan facility was negotiated between ISPO and Fidelity Bank for the pursuit of development projects across the state.
“This is an interest rate of five percent per year until February 2022, then nine percent per year from March 2022, with a term of 80 months and repayment via the allowance federation account allocation commitment, “he said.
Vice-Chair Abubakar Magaji, who chaired the meeting, put the motion to a voice vote after a closed-door meeting of the Committee of the Whole.
It was then adopted by the majority of lawmakers.