Delta Assembly approves Okowa’s N12b loan request

The Delta House of Assembly has approved Governor Ifeanyi Okowa’s request for a N12 billion bridge financing facility.

The approval follows a motion by Majority Leader Chief Ferguson Onwo at yesterday’s plenary in Asaba.

Okowa, through a letter read by the Speaker, Chief Sheriff Oborevwori, sought Assembly approval for the facility.

The Governor said the State expected a bridge funding credit from the Central Bank of Nigeria (CBN) to cushion the effect of the resumption of repayment of the Federal Government’s intervention facilities upon the expiry of the abstention period.

“This bridge funding sum is to be received in six consecutive equal monthly installments of N3.037 billion.

“The House may further note that for the purpose of reimbursing outstanding certificate arrears earned by contractors with respect to the completion of certain ongoing critical legacy projects awarded by this administration.

“It will also help the state take advantage of the remaining dry season to galvanize contractors towards completion and achieving milestones in ongoing projects.

“This has become necessary to secure bulk funds at minimal costs, pending receipt of full bridge funding credits from the Federal Government of Nigeria (FGN) in May 2022,” Okowa said in the letter.

He said that the Executive Council, at its first meeting on January 20, considered and approved the state government’s request for a bridge financing facility of N12 billion from Zenith Bank PLC, in relation to to the expected monthly inflows of FGN-CBN.

According to Okowa, the purpose of the letter is to seek permission from the House of Assembly, for the state government to accept and utilize Zenith Bank PLC’s loan facility, with terms and conditions.

Also, issue an appropriate irrevocable standing payment order (ISPO) to repay the loan.

Consequently, the Majority Leader moved a motion for approval of the Governor’s request and the motion was carried unanimously by the Assembly when put to a voice vote by the President.

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