The Rivers State House of Assembly has
authorised the state Governor, Nyesom Wike, to access a N14.16 billion
Federal Government Budget Support Facility.
At the sitting of the assembly on
Tuesday, 14 lawmakers, including an All Progressives Congress (APC)
member in the House, Hon Benibo Anabraba, present at the sitting
unanimously approved the request from the governor.
The governor had, in a letter to the
assembly through the speaker dated June 16, 2016, requested for the
authorisation to enable the state government access the fund and use it
to sustain payment of salaries to civil servants and pensioners in the
state. According to the letter, the state government was yet to access
the earlier N10 billion salaries bailout fund approved by the House.
The governor further indicated in the
letter that the fund is to be collected in three tranches with nine per
cent one year moratorium and Ending tenure. The letter also indicated
that the loan is to be secured on future dividends or funds due to the
state from the federal government.
The letter read in part: “The Federal
Government has offered the Rivers State government, the sum of N14.16
billion as Federally Guaranteed from the Federal Government Budget
Support Facility to enable us bear the present economic challenges and
continuously meet our financial obligations, especially to civil
servants and pensioners.
“The facility accessible in three
tranches of N1.39 billion for three months followed by N1.11 billion for
nine months and attract a subsidised interest rate of nine per cent one
year Moratorium and Ending tenure. Furthermore, it is to be secured on
future dividends or refunds due to the state from the federal
government.
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