The Delta House of Assembly has approved Gov. Ifeanyi Okowa’s request for N12 billion bridging finance facility for the state.
The approval was sequel to a motion moved by the Majority Leader of the Assembly, Chief Ferguson Onwo, during plenary on Tuesday in Asaba.
Okowa, through a letter read by the Speaker of the State House of Assembly, Chief Sherriff Oborevwori, requested for the approval of the Assembly for the facility.
Okowa said the state was expecting a bridging finance credit from the Central Bank of Nigeria (CBN) to cushion the effect of resumption of repayment of the Federal Government’s intervention facilities on the expiration of the forbearance period.
“This bridging finance sum is to be received in six equal consecutive monthly instalments of N3.037 billion.
“The House may further note that in a bid to defray arrears of unpaid certificates earned by contractors with respect to completion of some critical ongoing legacy projects awarded by this administration.
“This will also help the state take advantage of the subsisting dry season to galvanise contractors toward completing and achieving significant milestone in the ongoing projects.
“This became necessary to secure bulk funds at minimal costs, pending complete receipts of the Federal Government Nigeria(FGN) bridging finance credits in May 2022,” Okowa said in the letter.
He said the state’s Executive Council at its first meeting on Jan. 20, 2022, considered and approved the request of state government to obtain N12 billion bridging finance facility from Zenith Bank Plc, against the expected FGN-CBN monthly inflows.
According to Okowa, the purpose of the letter is to seek authorisation of State House of Assembly, for the state government to accept and utilise the loan facility from Zenith Bank Plc with terms and conditions.
Also, to issue an appropriate Irrevocable Standing Payment Order (ISPO) to defray the loan.
Consequently, the Majority Leader moved a motion for the approval of the governor’s request and the motion was unanimously adopted by the Assembly when it was put to a voice vote by the Speaker.
Meanwhile, the Assembly on Tuesday received a bill for a law to provide for the collection and processing of data of persons commuting in public/commercial transport within, into and out of Delta.
The House also received a bill for a law to repeal the Delta Development and Property Authority Law, 1960 and re-enact the Delta Development and Property Authority Law to exercise the functions of property development authorities.
The bill for a law to repeal and re-enact the waterways tax, control and licensing of boats law was also received by the Assembly.
The three bills were sent through a letter by Governor Okowa
(NAN)
