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 Delta defends N150bn loan.

Delta defends N150bn loan.

PUNCH.

Delta State Government has said it is seeking approval for a N150bn loan from the State House of Assembly as a discounting facility.

The state’s Commissioner for Finance, Mr Fidelis Tilije, and his counterpart in the Ministry of Information, Mr Charles Aniagwu, spoke on Wednesday in Asaba, the state capital, while explaining the reason for the loan.

The Delta State House of Assembly had on Tuesday approved N150bn following a letter written by  Governor Ifeanyi Okowa to the parliament, seeking approval for the bridging finance facility.

Tilije said the state was expecting a refund of about N394bn 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 November 30, 2021.

He said, “This administration resolved to finish strong, it is 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.

“Also, to galvanise contractors towards completing and achieving significant milestones in the projects.

“We are expecting N257bn and another of N137bn being money wrongly deducted from our 13 per cent derivation. Federal Government has said some parts will be pay within three years while other parts will be paid in five years.

“The bridging finance loan would also take care of outstanding pension commitments to state and local government pensioners in the Contributory Pension Scheme.”

Aniagwu explained that the implication was that the state would need to secure a bridging facility in order to achieve the objectives and it would come in tranches.

He said the loan was obtained the loan facility was because of the inflationary trend. He said the value of what the money could do now would be more in the future.

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