The Delta State House of Assembly, on Tuesday approved a request by the State Governor, Sen. Ifeanyi Okowa for a bridging finance facility of N150 billion in favour of the state government.
The Governor’s request was contained in a letter which was read during plenary of the Assembly by the Speaker of the State Assembly, Chief Sheriff Oborevwori in Asaba.
Okowa said, ”the requested credit facility which has Zenith Bank PLC as the “lead arranger”, would be principally tailored towards defraying arrears of unpaid certificates earned by contractors with respect to completion of some critical ongoing legacy projects awarded by past and present administrations in the State.
The governor also said that part of the loan would be tailored towards taking care of outstanding pension commitments to the State and local Government pensions in the contributory pension scheme amounting to N20 billion and N10 billion respectively.
“The Speaker and members of the State House of Assembly, I wish to inform you that the State is expecting refund from the Federal Government, being Petroleum Subsidy Payments made without recourse to the 13 per cent derivation due to oil producing States from January 1999 to Nov. 30, 2021.
“Delta State’s portion in this regard amounted to N270.6 billion.
“Bearing in mind of the administration’s resolve to finish strong, it is necessary for the state to capitalize on the refund to defray arrears of unpaid certificates earned by contractors with respect to completion of some critical ongoing legacy projects awarded by past and present administrations” the Governor said in the letter.
Consequently, the motion for the approval of the credit facility was moved by the Majority leader of the State Assembly, Chief Ferguson Onwo.
The motion which was unanimously adopted by the Assembly when put to a voice vote by the Speaker, was seconded by the Chief Whip of the state legislature, Mrs Pat Ajudua.