Jigawa state house of assembly has approved for the state government to access a loan of over N18.7 billion to cussion the effects of loan payment by the federal government.
The legislative approval followed Governor Badaru Abubakar’s request to the state house assembly to permit him to secure an internal loan.
The letter was sent to the state house of Assembly was presented in the floor of the house during a special seating held by the majority leader of the house, Alhaji Habu Maigatari.
A copy of the letter obtained by Radio Nigeria, titled “offer bridging Finance to cussion the effect of loan payment by the federal government” was signed by the Acting Governor Alhaji Umar Namadi.
The governor stated in the letter that “I am pleased to inform the Honourable speaker that the state government is in receipt of a letter from the federal ministry of finance, budget and national planning notifying us of the gracious approval of the president for bridging loan facility of about N656.112 billion available to 35 out of 36 states of the federation”.
According to him, the facility is to help cushion the effect of the payment of existing federal government intervention facilities to the states of the federation and Jigawa state inclusive.
The letter further revealed that the total loan amount to Jigawa state is over 18.746 Billion naira to be paid in 30 years with 9% interest annually on monthly repayment mode and moraterium period of 2 years.
Our Correspondent reports that the state Assembly had made a special seating on monday afternoon and approved to the state government to access the loan.
END/USMAN Mohammed Zaria