Nigeria: Delta Assembly Approves Okowa’s N20 Billion Loan Request
The loan is to enable the state government to fund its 5% stake in a liquefied natural gas project, the governor said.
The Delta State Assembly on Tuesday approved a request by Governor Ifeanyi Okowa for a 20 billion naira facility from Fidelity Bank Plc.
The governor’s request is contained in a letter read by the president, Sheriff Oborevwori, during the assembly’s plenary in Asaba.
Mr Okowa said the request was to fund the state government’s 5% stake in the UTM offshore Limited Floating Liquified Natural Gas (FLNG) project.
He said the project falls under the Central Bank of Nigeria (CBN) differentiated cash reserve requirement window.
“The facility is in line with the state government’s intention to diversify its strategic portfolio by investing in a floating liquefied natural gas plant project.
“Delta is expected to invest in the project through a five percent share of the company,” he said.
Mr. Okowa explained that the facility would not only boost employment for the large population and improve local content for Delta, but also secure the state’s future cash flow.
Consequently, Assembly Majority Leader Ferguson Onwo moved a motion for approval of the Governor’s request. He was seconded by Ika North East State Constituency Member Anthony Elekeokwuri.
The motion was passed unanimously by the chamber when put to a voice vote by the president.