Delta State Government has said that it is investing N20 billion in a floating gas project to be established in Warri axis of the state.
This was as the Okowa-led administration denied taking fresh N100 billion loan some quarters alleged it did from Premium Trust Bank.
Fidelis Tilije, the state commissioner for finance, who spoke to journalists in Asaba Monday, said the N100bn is among the N150bn bridging finance facility sought from the N240 billion oil derivation policy.
Residents in Delta State had in the wake of the week, vowed to use all lawful means to resist the move by Governor Ifeanyi Okowa to secure another ₦120 billion loan barely four months to the end of his tenure.
Also, the opposition All Progressives Congress (APC) reportedly kicked against the fresh loan on the grounds that Governor Okowa wants to fund his vice presidential ambition and consequently mortgage the future of the unborn generations in the state.
Fejiro Oliver, whistle blower, had on Thursday alerted Delta residents of a move by Okowa to obtain ₦120bn loan from Premium Trust Bank.
The facility, according to Oliver, would see Premium Trust Bank provide ₦100 billion while Fidelity Bank would provide the balance of ₦20 billion, which if approved will balloon the state’s debt profile to over ₦480bn, a move that has generated reaction amongst critical stakeholders across Delta.
But Tilije at the briefing in Asaba explained that the N20 billion is to be invested in a gas floating company of which the condition was the siting of the firm in Warri before the fund could be invested in the project.
He said that when completed, the project would provide jobs for citizens and increase the state’s internally-generated revenue.
Tilije as well recalled that the state government had earlier received an approval from the House of Assembly to obtain N150 billion bridging finance from the N240 billion accrued refunds to the state on the 13 percent Derivation Policy.
He said that the needed facility was later reduced to N100 billion by the state government after deliberation with finance houses involved in the arrangement.
According to him, a new lead-finance-house emerged after the discussion as against the one that was the leader at the time the House of Assembly gave the approval for the government to obtain the bridging finance facility.
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Tilije said that with the emergence of a new leading finance agent on the facility, and Governor Ifeanyi Okowa’s adherence to due process and law, “we went to the House of Assembly for a fresh resolution on their existing approval in line with prudential guidelines”.
He said “I am drawn into this because we are beginning to see some misconceptions, particularly with regards to the N100 billion discounting facility that the state has taken.
“You will also recall too that while we were here before to brief you on this matter, we itemised all the projects we will be doing with the facility, and we are on course with these projects.
