The loan is requested to be able to complete some key ongoing projects in the state – Gov Fintiri
– FG intervention facility is to enable the states relieve the burden of loans and intervention servicing incurred by the past administrations of various states – Commissioner
– The state generated N101b, expended N13b servicing debts, borrowed N30b, maintained N140b debts profile in the year 2020 – Director Treasury.
– Hon Yapak, opposition parties, cried against the N100b bond request, say N43b loan was yet to be naccounted for
Adamawa State Assembly has granted approval of N18.746 billion federal government intervention facility requested by the state government.
The approval was granted during the plenary session on Monday, in response to the letter dated 22nd October, 2021, submitted to the Assembly, by Governor Ahmadu Umaru Fintiri, to be able to complete some key ongoing projects.
Fintiri said President Muhammadu Buhari has graciously approved a bridging finance facility for the entire states of the federation hence, his administration’s request to that effect.
The State Executive Council SEC has during her 9th (2021) meeting on Friday, saw the need for the loan request.
Briefing newsmen at the government house after the emergency SEC meeting, the Commissioner for Information and Strategy, Dr. Umar Garba Pella explained that the loan would help the state to cushion the effect of repayment of federal government’s loans and intervention facilities.
“Federal government has opened a window for loan accessibility due to the formal request made by the Nigerian Governors’ Forum (NGF).
“This is to enable them to relieve the burden of loans and intervention servicing incurred by the past administrations of various states.
“The 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
The state legislators are agreed with the purpose for which the loan was requested and was subsequently approved.
The Speaker, Rt. Hon. Aminu Iya Abbas has directed the Clerk of the House to communicate the approval of the request to the executive arm for necessary action.
Social critics argued that the loan request and approval come “amidst concerns of the state’s huge debt portfolio and dwindling revenues.
The Director Treasury, in the Office of Accountant General, Adamawa State, Isa Mustapha, while presenting year 2020 budget performance highlights and total revenue performance to the CSOs in Yola, revealed that the state has generated N101b, expended N13b servicing debts, borrowed N30b, maintained N140b debts profile.
With the new loan facility, the state’s total indebtedness will jump from N140 billion to N158 billion.