Bayelsa governor gets approval for N17bn loan spree
Bayelsa governor Douye Diri has secured the approval of the Bayelsa House of Assembly to obtain N17 billion loan from multiple sources.
The approval followed a motion moved on Thursday by the House Leader Monday Obolo and seconded by Charles Daniel.
Mr. Diri had in three separate letters dated Oct. 26 and Nov. 9, addressed to the speaker, solicited the assembly’s approval for the loan.
He requested approval to access N4 billion for Sustainable Development Goals (SDGs) counterpart fund and N10 billion facility from the Central Bank of Nigeria (CBN) for oil palm project.
In another request, the governor sought approval for N3 billion loan – a revolving temporary credit facility, to fund state financing gap.
“As part of this administration’s efforts to cushion the effect of the global economic downturn occasioned by the COVID-19 pandemic and the dwindling oil revenues, we seek to take advantage of intervention funds from the Federal Government through the Central Bank of Nigeria and Sustainable Development Goals (SDGs) programme.
“The facility from the Central Bank of Nigeria will aid the state government to develop our oil palm potential, while the Sustainable Development Goals (SDGs) counterpart fund is a pre-requisite for the state to attract a matching grant under the SDGs,’’ he said.
He explained that the N4 billion Sustainable Development Goals (SDGs) counterpart fund would be obtained from a commercial bank.
On the N3 billion loan, Mr. Diri said, “Due to the global economic downturn and dwindling revenue, it has become imperative to source for a revolving short-term credit finance line to fund gaps when there is a short fall in monthly revenue accruing to the state.
“This credit line will enable the state government to respond appropriately to critical monthly financial obligations. The standing instruction will eliminate reoccurring documentation costs.
“The facility shall be for tenure of 12 months as temporary overdraft with short-term clean up circle.’’
The assembly also approved the governor’s request to appoint additional 10 special advisers.
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
Sport
NPFL: Insurance unbeaten, Akwa United dim Shooting Stars, Sunshine keep Super 6 hope alive
Bendel Insurance have maintained their unbeaten run in the abridged Nigeria Premier Football League season.
States
Gunmen kill two policemen in Enugu during stop-and-search operation
The fatal attack on Sunday morning.
Economy
ILO lauds Nigeria’s commitment to social dialogue
“In less than five months, the nation has ratified and deposited two additional conventions.”
Rights
Court blocks Seyi Makinde government’s accounts over multibillion-naira debt
The court condemned Mr Makinde’s impunity, imperial and undemocratic tendencies.
Sport
Tottenham Hotspur fire Antonio Conte
Spurs announced Conte’s exit via a statement on Sunday night.
Education
Nigerian lawyer Afe Babalola donates £10 million to King’s College London
The centre promises blended and online programmes for access to students who have had their journey to higher education disrupted by conflict, displacement, or other transitions.
