It is understood that the loan facility is intended for various purposes in the state, including funding capital projects…CONTINUE READING

On Monday, the House unanimously granted approval for this request, stating that it would enable the government to fulfill its responsibilities, particularly in providing essential infrastructure to attract investments to the state.

The legislators also viewed it as a positive step because the loan would be utilized within the governor’s first term in office.

According to information from SaharaReporters, a preliminary draft of the loan request indicates that N100 billion is designated for a bank guarantee line, N10 billion for a term loan, N10 billion for an overdraft facility, and N50 billion for a credit facility.

In a letter signed by the Secretary to the State Government, Prof. Chidiebere Onyia, and addressed to the Speaker of the Enugu State House, Hon Uchenna Ugwu, it was revealed that this request followed approval from the Enugu State Executive Council for a N100 billion bank guarantee line, N10 billion term loan, N10 billion overdraft facility from Fidelity Bank, and N50 billion credit facility from Globus Bank.

The N100 billion bank facility will serve as a guarantee for payments related to contracts awarded to approved contractors.

The loan will be repaid through an Irrevocable Standing Payment Order (ISPO) using consolidated Enugu State IGR accounts, which will be held in Fidelity Bank, along with the domiciliation of JAAC/FAAC/Infrastructure Support.

The N10 billion term loan has a 48-month tenure and will involve monthly repayments through ISPO, drawing from the consolidated Enugu State IGR accounts held in Fidelity Bank, along with the domiciliation of JAAC/FAAC/Infrastructure Support. This loan is intended for infrastructural development.

The N10 billion overdraft facility will be utilized for the prompt payment of recurrent expenses, such as salaries. It carries a 12-month tenure with monthly clean-up and repayment through ISPO, drawing from consolidated Enugu State IGR accounts held in Fidelity Bank, along with the domiciliation of JAAC/FAAC/Infrastructure Support.