Delta House Approves N10b Loan For Governor Okowa

By Ignatius Okpara, Asaba – Delta State House of Assembly has approved a whopping 10 billion naira for Governor Ifeanyi Okowa, for the restructuring of existing loan facilities.

The lawmakers, approved the loan to be obtained from from one of the commercial bank during its plenary.

The governor had in a letter to the Assembly, reminded the legislators that he met a huge bank and capital market debt of about N96.62 billion with a scheduled monthly repayment of N4.6 billion.

He said there was another monthly repayment of Delta State Infrastructure Development Bond of N50 billion obtained by the former administration in 2011.

The state according to him, had reached an unsustainable level of indebtedness, which was worsened by declining oil prices and low receipts from the monthly Federation Account.

Okowa noted that in a bid to free the resources for other development purposes, his administration resorted to restructuring existing loan facilities.

He stated that the restructuring of the existing facility and obtaining N10 billion loan was consented to in principle, subject to the approval of the House of Assembly.

He said the new approach would mitigate the harsh impact of the liquidity crisis in the state, reduce the time lag in the payment of salaries, pensions and overhead costs as well as ensure the take-off of some key projects.

He therefore, explained that the letter was meant to solicit the Assembly’s approval, adding that he would be glad to have its urgent consideration.

The request was however, approved by the lawmakers following a motion moved by the Majority Leader Tim Owhefere and seconded by Samuel Mariere, representing Ughelli North I.

It was unanimously adopted by members.