Governor Ifeanyi Okowa’s request for N12 billion bridging finance facility has been approved by the Delta State House of Assembly.
The approval came after a motion was moved by the Majority Leader, Chief Ferguson Onwo, during plenary on Tuesday, February 15, in Asaba.
Okowa, through a letter read by the Speaker, Chief Sherriff Oborevwori, requested the approval of the Assembly for the facility.
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According to the governor, 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 Executive Council at its first meeting on January 20 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.
The purpose of the letter is to seek authorisation of the House of Assembly, for the state government to accept and utilise the loan facility from Zenith Bank PLC, with terms and conditions and also, to issue an appropriate Irrevocable Standing Payment Order (ISPO) to defray the loan.
The Majority Leader further moved a motion for the approval of the governor’s request and which was unanimously adopted by the Assembly when it was put to a voice vote by the Speaker.
