Governor Ifeanyi Okowa has written to the Delta State House of Assembly seeking approval of a bridging finance facility of One Hundred and Fifty Billion Naira in favour of the state government.
The Governor In a letter to the House read by the Speaker, Rt Hon Sheriff Oborevwori, at plenary, said the state was expecting a refund from the Federal Government, being Petroleum Subsidy payments made without recourse to the 13% derivation due to oil-producing states from January 1999 to November 30, 2021.
According to Governor Okowa “Delta State’s portion amounted to Two Hundred and Seventy Billion, Six Hundred and Sixty-four Million, Two Hundred and Eighteen Thousand, Four Hundred and Sixty Naira, Twenty-three kobo.
He said bearing in mind the resolve of his administration to finish strong, it was necessary for the state to capitalise on the refund to defray arrears of unpaid certificates earned by contractors with respect to the completion of some critical ongoing legacy projects awarded by past and present administrations, and also to galvanise contractors towards completing and achieving significant milestones in the projects.
Governor Okowa further noted that the bridging finance loan would also take care of outstanding pension commitments to state and local government Pensioners in the Contributory Pension Scheme, amounting to Twenty Billion Naira and Ten Billion Naira, respectively.
He explained that the state’s ability to achieve the foregoing is however limited by the fact that the expected total refund will not be received into the state’s account in one lump sum, rather it will be refunded over a period of five years on a quarterly basis with effect from April 2022 to January 2027.
The implication according to the Governor, is that the State will need to secure a bridging facility in order to achieve the objectives and the facility shall be secured with the quarterly expected inflows.
To this end, Dr Okowa disclosed that the state government intends to arrange a bridging finance loan facility of One Hundred and Fifty Billion Naira with Zenith Bank plc.
He also said in the letter that the State Executive Council at its Fourth meeting held on Friday, 25 March 2022, considered and approved that the state obtains a syndicated bridging finance facility, of the sum with Zenith Bank Plc as the Lead Arranger.
The motion for the approval of the request was moved by the Majority Leader, Ferguson Onwo and unanimously approved.
The House adjourned plenary till May 10, 2022.
