Enugu Assembly Approves N170 Billion Loan Facility For Gov Mbah

The Enugu State House of Assembly has approved a N170 billion loan facility to the administration of Governor Peter Mbah.

Naija News understands that the loan facility is used to fund capital projects, among others, in the state.

On Monday, the House unanimously approved the request, saying that it would enable the government to deliver on its mandate, especially in providing critical infrastructure needed to attract investments to the state.

The lawmakers also said it was a good move because the loan would run its entire course in the governor’s first tenure.

According to SaharaReporters, a draft of the loan request shows that N100 billion is for a bank guarantee line while N10 billion is for a term loan, N10 billion is for an overdraft facility, and N50 billion for a credit facility.

In a letter signed by the Secretary to the State Government, Prof. Chidiebere Onyia, and addressed to the Enugu State  Speaker, Hon Uchenna Ugwu, it was disclosed that the request followed approval from the Enugu State Executive Council of the offer of N100 billion bank guarantee line, N10 billion term loan and N10 billion overdraft facility from Fidelity Bank and N50 billion credit facility from Globus Bank.

The N100 billion bank facility will guarantee payment for contracts issued to approved contractors.

The loan will be repaid via Irrevocable Standing Payment Order (ISPO) on consolidated Enugu State IGR accounts, which would be domiciled in Fidelity Bank and domiciliation of JAAC/FAAC/Infrastructure Support.

The N10 billion term loan is on a tenure of 48 months and a monthly repayment via ISPO on consolidated Enugu State IGR accounts, which will be domiciled in Fidelity Bank and domiciliation of JAAC/FAAC/Infrastructure Support. It will be used for infrastructural development.

The N10 billion overdraft facility will be used for prompt payment of recurrent expenditures such as salaries and has a tenure of 12 months with monthly clean up and repayment via ISPO on consolidated Enugu State IGR accounts, which will be domiciled in Fidelity Bank and domiciliation of JAAC/FAAC/Infrastructure Support.

The N50 billion credit facility is for the refinancing of the outstanding receivables from the Enugu State Government, and the repayment plan is 42 months equal and consecutive monthly repayment of principal and interest, which will be debited from Enugu State FAAC account with Globus Bank PLC.