Enugu State House of Assembly Thursday approved a N15billion loan facility from the Central Bank of Nigeria (CBN) to enable the state improve on her infrastructure base.
Governor Ifeanyi Ugwuanyi had written the House Wednesday, through the Secretary to the State Government (SSG), Prof. Simon Ortuanya, asking the members ‘to approve the loan request he made to enable him secure the CBN Infrastructure finance facility which would aid better provision of democracy dividends to the citizenry.”
Because of the importance of the loan to improve the provision of infrastructure in the state, the House unanimously approved the loan facility.
Members who spoke on the merits of the loan said when procured, it would go along way to develop the state if it is utilised judiciously.
The member representing Nkanu East state constituency, Hon. Paul Nnajiofor, urged his colleagues to approve the loan because the governor’s letter to the House was not contentious because of its expected benefit.
“The letter is not contentious. The request is genuine. It is very, very clear that we support the request. I move a motion that we accept it,” Nnajiofor said.
Hon. Jeff Mbah representing Oji River, said the terms for repayment is good for the state as it spans for ten years with a minimal interest of nine percent.
“The moratorium of one year is okay before you talk of repayment. The loan will be offset in ten years time,” Mba said pointing out that because of paucity of funds, the capital expenditure approved in the budget had to be altered to accommodate recurrent expenditure.
The speaker of the Assembly, Hon. Edward Uchenna Ubosi commended his colleagues for approving the loan request and charged the House Committee on Works to take charge and “monitor the loan to see that it is well utilised.”