ASSEMBLY MANDATES APPROPRIATION COMMITTEE TO SCRUTINIZE CREDIT FACILITIES - By Itam Offor



The State House of Assembly has again committed the State Governor’s request for approval to obtain credit facilities of Ten Billion Naira each from First Bank and Zenith Bank to its Committee of Finance and Appropriation for in-depth scrutiny.

The House deliberated on the requests contained in two separate letters from the secretary to the State Government on Wednesday, February 12, 2020 during plenary.

According to the letters, the State Executive Council at its 3rd meeting of Friday 24th January 2020 resolved to get loan facilities of Ten Billion Naira from Zenith Bank PLC for developmental projects and another Ten billion Naira from First Bank PLC for execution of capital projects. Both facilities are offered for 48 Months at an interest rate of 15% per annum.

Members who commended the governor’s Industrialization drive however observed that there was need for the House to be furnished with more details including, the type of projects being considered, their cost, location as well as the total facilities already accepted by the State Government.

The House mandated the Finance and Appropriation Committee to interface with relevant Stakeholders including the proposed financial institutions to enable it make an informed decision.

You may recall that the House had earlier referred the State Governor’s request for its approval to withdraw one billion, five hundred million Naira from the State’s Reserve Fund as well as a facility of fifteen Billion Naira from United Bank for Africa PLC to its Appropriation Committee.

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