Governor Douye Diri has obtained approval from the Bayelsa Legislative Assembly to obtain a loan of N17 billion from various sources.
The passage followed a motion tabled Thursday by House Leader Monday Obolo, (South Ijaw District 2) and seconded by Charles Daniel, (Brass I District).
Diri had requested in three separate letters, dated October 26 and November 9, to the speaker, the assembly’s approval for the loan.
He requested approval to access the counterpart fund for the Sustainable Development Goals (SDG) and the service of 10 billion naira from the Central Bank of Nigeria (CBN) for the oil palm project.
In another request, the governor sought approval for a loan of Naira 3 billion, a temporary revolving line of credit, to finance the state funding gap.
“As part of this administration’s efforts to cushion the effect of the global economic recession caused by the COVID-19 pandemic and the decline in oil revenues, we seek to take advantage of Federal Government intervention funds through the Central Bank of Nigeria and Sustainable Development Goals Program (ODS).
“The installation of the Central Bank of Nigeria will help the state government to develop our oil palm potential, while the Sustainable Development Goals (SDG) counterpart fund is a prerequisite for the state to attract a matching grant under of the SDGs “. he said.
He explained that the counterpart fund for the Sustainable Development Goals (SDGs) of N4 billion would be obtained from a commercial bank.
On the Naira 3 billion loan, Diri said: “Due to the global economic downturn and declining income, it has become imperative to seek a revolving short-term line of credit financing to finance the gaps when there is a low decline. in the accumulated monthly income status.
“This line of credit will allow the state government to adequately respond to critical monthly financial obligations. Ongoing training will eliminate recurring documentation costs.
“The facility will have a 12-month tenure as a temporary overdraft with a short-term cleanup loop.”
The assembly also approved the governor’s request to appoint 10 additional special advisers. (YAYA).