The Adamawa State Executive Council has approved a memo from the State Ministry of Finance and Budget requesting eighteen billion, seven hundred and forty-six million, five hundred and ninety-two thousand naira fifty koboss (N18,746,592.50k) from the Federal Government.
The Commissioner Ministry of Information and Strategy, Dr Umar Garba pella, told reporters Friday after the emergency State Executive Council Meeting presided over by the state Governor, Ahmadu Umaru Fintiri at the Council Chambers, Government House Yola,
That the approval was to allow the state access to the Federal Government.
bridging finance facility to mitigate the impact of the FG loan repayment, as well as intervention facilities
He explained that the state government, like any other in Nigeria, accessed various intervention funds and loans from the FG to support budget facilities and carry out other projects, adding that the intervenDrn received included budget support facility, excess crude, bank loans, and salary areas facility.
Drlla stated that when he first joined the team, The administration of Governor Fintiri recognized that maintaining the facilities provided by previous administrations had always been a significant financial burden on the state.
He stated that the Governors Forum has deliberated on the burdens on the Federation’s states to approve the 36 states’ access to bridging finance.
The Information and Strategy Commissioner stated that the state will access the bridging finance facility if all conditions are met, including approval by the state Executive Council before submitting it to the state assembly for approval and submitting a formal application to the FG to access the fund.
He stated that the loan will be granted at a 9% interest rate, emphasizing that Adamawa is taking advantage of the opportunity to obtain cheap finance at a rate that will reduce the burden on the state.
In addition, the majority of the states have completed the loan application process.