Adamawa State House of Assembly (ADHA) has approved a N17 billion loan facility requested by Governor Ahmadu Fintiri for the execution of certain critical projects in the state.
Fintiri had sought ADHA’s approval to obtain the loan from two commercial banks for execution of projects across the 21 councils of the state. The request was contained in two separate letters and read at the resumed plenary presided over by the Speaker, Aminu Abbas.
According to the letters, the state government will obtain N15 billion from Fidelity Bank to pay back within 48 months at 13 per cent interest rate and 0.5 per cent management fee.
The governor added that another N2 billion would be sought from Access Bank at a tenure of 10 months at 4.5 per cent interest rate up to February 2021 and nine per cent interest rate from March 1, 2021.
He said, “The N2 billion loan facility is at the instance of Central Bank of Nigeria (CBN) extended to all the 36 states of the federation to fight COVID-19.” If approved, the loan would be used to build and expand healthcare facilities and acquire medical equipment, the governor had said.
The letters promptly referred to the standing committee on finance, budget and appropriation headed by Kate Raymond Mamuno for consideration.