The Sokoto State House of Assembly has approved Governor Aminu Tambuwal request to access two loan facilities worth N28.7 billion for the state.
This development followed the consideration of two letters by the governor to the Assembly at the Committee of the Whole House as requested by Bello Ambarura the All Progressive Congress (APC) leader in the Assembly.
The request includes the sum of N18.7 billion Federal government intervention facility and N10 billion on behalf of the 23 local government councils in the state.
Mr. Ambarura said that the federal government intervention facility is part of the N656.1 billion approved by President Muhammadu Buhari for the 35 States of the Federation.
According to him, the facility is aimed at helping the states of the federation to cushion the effects of the repayment of the existing federal government intervention on budget support, Excess Crude Account-Backed loan and salary arrears bail-out facility.
He said the loan facility will enable the state government to bridge gap in the anticipated revenue shortfall and augment the current budgetary provisions in some of the economic sectors.
The Lawmaker also revealed that the funds will 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) is to include six tranches mode of disbursement, 30 years tenor and 9 per cent interest rate per annum.
Other conditions are, two years Moratorium, monthly repayment mode and Irrevocable Standing Payment Order (ISPO).
On the requested N10 billion loan facility from Fidelity Bank Plc, on behalf of the 23 LGAs in the state, Ambarura said the facility is to fast-track the socio-economic development in the Councils.
The lawmaker said the loan facility was negotiated via ISPO with Fidelity Bank for the continuation of development projects across the state.
He said the interest rate of 5 per cent per annum until February 2022 and then 9 per cent per annum from March 2022, within a tenor of 80 Months and repayment via Federation Account Allocation Committee (FAAC)
The Deputy Speaker Abubakar Magaji, who presided over the sitting put the motion into a voice vote after a close door Committee of the Whole House meeting and was adopted by the majority of the lawmakers.
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