The Enugu State House of Assembly has approved the state government’s request to access the Central Bank of Nigeria Infrastructure Finance Facility of N15billion only.
The request was contained in a letter sent to the legislators by Enugu State Governor Ifeanyi Ugwuanyi and signed by the Secretary to the State Government, Prof. Simon Ortuanya.
In his letter of request, Ugwuanyi pointed out that the reason for the loan is to specifically finance the infrastructural development in the state because of bad economy of the 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.
A member representing Oji River constituency Hon Jeffrey Mbah, in his speech, described the loan as manna from heaven and highlighted three salient points in favour of the loan.
He said, “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.”
Other lawmakers, who contributed to the debate, stated that the loan became necessary to enable the State Government complete the numerous ongoing projects as well as initiate new ones.
The Speaker, Enugu State House of Assembly, Hon Edward Uchenna Ubosi, in his statement noted that “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 billion only.“ …Nominate United Bank of Nigeria as the receiving bank and an irrevocable standing payment order, ISPO, in respect of the facility.”
He appreciated 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.”
It is important to note that the approved N15billion CBN loan comes a week after the Enugu Assembly’s approval of N18.74billion being a federal government bridging finance facility for the state government.
