The Enugu State House of Assembly approved Governor Peter Mbah’s request for a N170 billion loan to fund capital projects and other needs in the state.
The legislators unanimously granted the request, emphasizing that it would enable the government to fulfill its obligations, particularly in the provision of essential infrastructure required to attract investments to the state.
The State Assembly also expressed satisfaction that the loan would be fully utilized within the governor’s initial term.
A breakdown of the loan includes an N100 billion bank guarantee line, an N10 billion term loan, an N10 billion overdraft facility, and an N50 billion credit facility.
A letter, signed by the Secretary to the State Government (SSG) Chidiebere Onyia and addressed to the Speaker, Uchenna Ugwu, revealed that the request was made following approval by the State Executive Council for the provision of an N100 billion bank guarantee line, an N10 billion term loan, and an N10 billion overdraft facility from Fidelity Bank, along with an N50 billion credit facility from Globus Bank.
The N100 billion bank facility will serve as a guarantee for payments related to contracts awarded to approved contractors.
Repayment of the loan will be facilitated through an Irrevocable Standing Payment Order (ISPO), utilizing consolidated Enugu Internally Generated Revenue (IGR) accounts held at Fidelity Bank. Additionally, the funds will be domiciled to support JAAC/FAAC/Infrastructure initiatives.
Furthermore, as part of its ongoing efforts to combat illegal mining activities in Enugu State, the government has reaffirmed its dedication to promoting legitimate investment activities. This commitment includes providing the necessary support mechanisms for ease of doing business, such as ensuring adequate security, improving infrastructure, offering an attractive tax regime, and undertaking road development projects.
During the weekend, following the State Executive Council Meeting, the Attorney General and Commissioner for Justice, Dr. Kingsley Udeh, announced that the state had decided to establish two trusts: the Environmental Remediation Trust Fund (ERTF) and the State Security Trust Fund (SSTF). Miners who have received legal authorization from the government with valid licenses will be required to make specified contributions to these funds to support remediation projects.
Udeh explained that this initiative aims to protect the environment by addressing health hazards associated with mining activities while also enhancing security measures to safeguard lives and property.