Thursday, 24 September 2015

ENUGU LEGISLATURE GRANTS GOV. UGWUANYI’S N14.2BN LOAN REQUEST

Rt. Hon. Chief Ifeanyi Ugwuanyi
Information reaching the newsroom of the best-selling and most sought after online business, political news and articles publishers, Tectono Business Review, has it that Enugu State legislature has granted a application by the state government to obtain the sum of N14.2bn as loan from the bailout funds provided by the Federal Government.

A statement by the Chief Press Secretary to the Speaker of the state House of Assembly, Mr. Emmanuel Nweze, which was made available to us stated that the state governor, Rt. Hon. Chief Ifeanyi Ugwuanyi applied for the loan to enable the state pay up outstanding salaries/subventions, pensions, as well as finance developmental and infrastructural projects.

According to the statement, N4.2bn would be used to offset arrears of salaries/subventions and pensions, whereas N10bn was meant for infrastructural projects. The legislators passed a resolution to approve the loan following a motion presented by the House Leader, Hon. Ikechukwu Ezeugwu, who represents Udenu Constituency.

The resolution passed by the lawmakers read: “This Honourable House do resolve to authorise the State Government to obtain loans of N4,207,000,000 (four billion two hundred and seven million naira) and N10,000,000,000 (ten billion naira) only, respectively, from Central Bank of Nigeria (CBN) to liquidate arrears of salaries (subventions) and pensions and for development of infrastructural projects to be secured by Excess Crude Account (ECA).”

According to the statement, the approval was informed by the outcome of the National Economic Council meeting of June 2015, which authorised the CBN to create a pool of loanable funds up to a maximum of N10bn for any interested state to access which would be repaid over a twenty-year period.

It also stated that the Enugu State Government had earlier applied for the restructuring of its commercial bank loans, totaling about N6.4bn as of June 2015.

It added: “When this is approved, the monthly repayment will be reduced as the tenure of the loans will be extended over 20 years, thereby leaving reasonable balance monthly for the state to operate, and as such the repayment of this bailout can still be accommodated.”