ENUGU — The Enugu State House of Assembly has resolved and approved the State Government’s request to access the Central Bank of Nigeria Infrastructure Finance Facility of N15,000,000,000.00 (Fifteen Billion Naira) only.
The request was contained in a letter from the Enugu State Governor, Ifeanyi Ugwuanyi signed by the Secretary to the State Governor, Simon Ortuanya.
The letter states the reason for the loan is to specifically finance infrastructural development in the state given the dwindling economy of states and the nation at large.
The infrastructural loan at single-digit interest rate of 9% will be domiciled with the United Bank of Africa and disbursed to contractors’ account.
Supporting the need to access the loan, Jeffery Mbah, member representing Oji River constituency described the loan as manna from heaven and highlighted three salient points in favor of the loan;
“The moratorium of 12 months gives the State Government ample time to utilize the loan with 10 years tenor for repayment; the interest rate is a single digit and almost like a grant and the need to replace money moved from capital expenditure recently to recurrent expenditure,” Mbah analyzed.
Other members, who contributed revealed that the loan became necessary to enable the State Government complete the numerous ongoing projects as well as initiate new ones.
Speaking after the supporting contributions of the legislators, the Speaker, Edward Ubosi then stated;
“The Enugu State House of Assembly hereby resolve and approve the request of the Enugu State Government to access the Central Bank of Nigeria Infrastructure Finance Facility of N15,000,000,000.00 (Fifteen Billion Naira) only.”
“nominate United Bank of Nigeria as the receiving bank and an irrevocable standing payment order, ISPO, in respect of the facility.”
The Speaker then appreciates his colleagues for unanimously approving the loan for the state and called on the Chairman Committee on Works and other committees to ensure that the loan is utilized for the purposes of infrastructural development in the course of their oversight function.”
Worthy to note that the just approved 15 Billion naira CBN loan comes a week after the Enugu Assembly’s approval of N18, 746,059,992.57 (Eighteen billion, seven hundred and forty six million, fifty nine thousand, nine hundred and ninety two naira, fifty seven kobo only) being a Federal Government bridging finance facility for the State Government.
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