- On Monday, the legislators unanimously endorsed the request
The Enugu State House of Assembly granted approval to the request from Governor Peter Mbah’s administration to secure a N170 billion facility for various purposes, including funding capital projects.
On Monday, the legislators unanimously endorsed the request, emphasizing that this move would enable the government to fulfill its obligations, especially concerning crucial infrastructure essential for attracting investments to the state.
The predominantly Labour Party-controlled Assembly expressed satisfaction that the loan would be fully utilized during Governor Mbah’s first term.
The breakdown of the request is as follows: N100 billion in bank guarantee line, N10 billion in term loan, N10 billion in overdraft facility, and N50 billion in credit facility.
In a letter signed by the Secretary to the State Government, Prof. Chidiebere Onyia, and addressed to Speaker Hon. Uchenna Ugwu, it was revealed that the request stemmed from the approval of the Enugu State Executive Council for a N100 billion bank guarantee line, N10 billion term loan, and N10 billion overdraft facility from Fidelity Bank, alongside a N50 billion credit facility from Globus Bank.
The N100 billion bank facility will serve as a guarantee for payments related to contracts awarded to approved contractors.
Repayment of the loan will occur through the Irrevocable Standing Payment Order (ISPO) on consolidated Enugu State IGR accounts, held in Fidelity Bank, and domiciliation of JAAC/FAAC/Infrastructure Support.
The N10 billion term loan, with a tenure of 48 months, will involve monthly repayments via ISPO on consolidated Enugu State IGR accounts, domiciled in Fidelity Bank, and domiciliation of JAAC/FAAC/Infrastructure Support. It is intended for infrastructural development.
The N10 billion overdraft facility will be used to ensure prompt payment of recurrent expenditures like salaries, with a tenure of 12 months and monthly clean-up, repaid through ISPO on consolidated Enugu State IGR accounts, domiciled in Fidelity Bank, and domiciliation of JAAC/FAAC/Infrastructure Support.
Lastly, the N50 billion credit facility is designated for refinancing outstanding receivables from the Enugu State Government. The repayment plan involves 42 months of equal and consecutive monthly repayments of principal and interest, debited from Enugu State FAAC account with Globus Bank PLC.