BusinessDay
Nigeria's leading finance and market intelligence news report.

Delta Assembly approves Okowa’s N5bn request for payment of major contractors

The Delta State House of Assembly has approved the sum of N5 billion loan facility from Deposit Money Banks in favour of major contractors handling projects for the state government.

The approval was made as requested by the state governor, Ifeanyi Okowa, during plenary of the House on Thursday. The request was contained in a letter to the state legislature by the governor and read by the Speaker, Sheriff Oborevwori.

Okowa said the essence of the loan facility was to reduce government’s commitment to contractors, adding that the State Executive Council had at its 8th meeting held on Wednesday, September 2nd, 2020 considered and approved that the State Government guarantees selected Deposit Money Bank Contractors’ Finance Facilities amounting to N5 billion to some state nominated major contractors.

READ ALSO: Delta state approves N488.4m for completion of DELSU Faculty of Arts building

The Governor explained that the tenure of repayment of the facilities is 30 months, inclusive of six months moratorium on the payment of the principal amount only. He noted further that the monthly interest of N62.5 million would be deducted between September 2020 and February 2021.

Okowa pointed out that the essence of the letter was to seek the authorization of the House for the state government to guarantee the loan facility by issuing Irrevocable Standing Order for the repayment of the facilities.

The request was approved following a motion to that effect by the Majority Leader, Hon Tim Owhefere and unanimously adopted. Also at plenary, a Bill for a law to amend the schedule to the Traditional Rulers Council and Chiefs Law 2008 was read the first time on the floor of the house.

The Majority Leader, Hon Tim Owhefere’s motion to that effect was seconded by the Deputy Majority Leader, Oboro Preyor, and adopted.

The second reading of the bill has been slated for Tuesday, September 29, 2020.

Whatsapp mobile

Get real time updates directly on you device, subscribe now.