Adamawa Govt approves N18.71bn loan from FG

The Adamawa Government has approved N18.714 billion loan to enable the state access the Federal Government’s bridging finance facility.

Dr. Umar Pela, Commissioner for Information and Strategy, stated this while briefing newsmen at the end of the emergency State Executive Council (SEC) meetimg, in Yola on Friday.

Pella said the emergency SEC meeting followed a memo written by the state Ministry of Budget and Finance, as a first step in acquiring the loan.

He said the loan would help the state to cushion the effect of repayment of Federal Government’s loans and intervention facilities.

“Federal Government have opened a window for loan accessibility due to the formal request made by the Nigerian Governors’ Forum (NGF).

“The is to enable them to relieve the burden of loans and intervention servicing incurred by the past administrations of various states.

“These loan interventions previously provided to states included budget support facilities, bank loans, salary bailout fund, and excess crude accounts.

“The present administration in the state has realised that servicing the loans and interventions had chocked Adamawa and other states across the nation,” he said.

He said that the Federal Government’s bridging facility approved for the 36 states provided a cheaper financing window at nine per cent.

Pella said that the state government had initiated the process of acquiring the loan, adding that facility will assist the state in lifting its financial burdens.

“The loan if acquire will also position the state government to perform well and deliver on development and other dividend of democracy to the people,” he said.

The Commissioner said that the approved memo would be transmitted to the state House of Assembly for legislative processes, to fast track presention of formal loan request to the Federal Government.