Assembly approves N28.7bn loan for Sokoto Govt
Sokoto State House of Assembly, on Tuesday, approved Gov. Aminu Tambuwal’s request to access two loan facilities worth N28.7 billion for the state.
The development followed the consideration of the two letters sent to the Assembly by the governor by the Committee of the Whole House, as requested by Alhaji Bello Ambarura.
The requests include: N18.7 billion Federal Government’s intervention facility and N10 billion on behalf of all the 23 local government councils in the state.
Ambarura said that the federal government’s intervention facility was part of the N656.1billion approved by President Muhammadu Buhari for the 36 states of the federation.
“The facility is aimed at helping the states to cushion the effects of the repayment of the existing federal government’s intervention on budget support.
“It also includes Excess Crude Account-backed loan and salary arrears bailout facility.
“Moreover, it will enable the state government to bridge the gap in the anticipated revenue shortfall and augment the current budgetary provisions in some of the economic sectors,” he said.
The lawmaker added that the funds would be committed to financing outstanding payments for capital projects and certain essential expenditure for economic development.
He said that the condition of the loan facility, as specified by the Central Bank of Nigeria (CBN), was to include six tranches mode of disbursement, 30 years tenor and nine per cent interest rate per annum.
Other conditions, according to the lawmaker, are: two years moratorium, monthly repayment mode and irrevocable standing payment order (ISPO).
On the N10 billion loan requested from Fidelity Bank Plc on behalf of the 23 LGAs in the state, Ambarura said that it was aimed at fast tracking the socio-economic development in the councils.
“The loan facility was negotiated vide ISPO with Fidelity Bank for the continuation of development projects across the state.
“This is with an interest rate of five per cent per annum until February 2022 and then nine per cent per annum from March 2022, with a tenor of 80 months and repayment via Federation Account Allocation Commitment (FAAC) allocation,” he said.
The Deputy Speaker, Mr Abubakar Magaji, who presided over the sitting, put the motion into a voice vote after a closed door meeting of the committee of the whole house.
It was subsequently adopted by majority of the lawmakers.
