ENUGU STATE HOUSE OF ASSEMBLY APPROVES N170 BILLION LOAN FOR STATE GOVERNMENT

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The Enugu State House of Assembly has granted approval for Governor Peter Mbah to obtain a N170 billion loan. The funds will be allocated to finance several essential projects within the state. 

The loan request was presented in a letter read by the Speaker of the assembly, Chief Uche Ugwu, during an emergency plenary session in Enugu.

The approved loan will be secured from Fidelity and Globus banks and will provide the state government with the financial means to execute crucial infrastructural projects. 

The breakdown of the loan includes a N100 billion Bank Guarantee Line (BGL), N10 billion Term Loan (TL), N10 billion Overdraft Facility from Fidelity Bank, and N50 billion Credit Facility from Globus Bank.

The Bank Guarantee Line (BGL) will serve as a guarantee for payment in contracts awarded to various contractors, including the China Civil Engineering Construction Company (CCECC), for the implementation of state government projects.

The Term Loan carries an interest rate of 22 percent per annum, which may be subject to review based on money market realities. The repayment tenure for this loan is 48 months.

The Overdraft Facility loan is intended to ensure the timely payment of workers' salaries and address other recurring expenses, with a repayment tenure of 12 months.

Approval for these loans was granted by the State Executive Council on October 6. 

The Minority leader of the House, Mr. Iloabuchi Aniagu, commended the governor for presenting the loan request, stating that it is timely and will support the state government's developmental agenda for its residents.

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