The Delta House of Assembly on Tuesday approved N8 billion-loan facility for the state government to fund the Agro Industrial Park located at Ogwashi-Uku in Aniocha South Local Government Area of the state.
The approval of the loan followed a request earlier sent to the assembly through a letter by Gov. Ifeanyi Okowa, seeking its approval.
The letter was read during plenary in Asaba by the Speaker, Chief Sheriff Oborevwori.
Okowa said in the letter that the credit facility was geared towards diversifying and increasing the revenue base of the state through agriculture.
He said: ”It has become imperative to fund the project through the Central Bank of Nigeria (CBN) Commercial Agriculture Credit Scheme for the good of Deltans.
”In this regard, the state Executive Council at its sixth meeting held on June 16, considered and approved that the state government obtain the sum of N8 billion CBN Commercial Agriculture Credit Scheme loan on an on-lending arrangement from Zenith Bank Plc.
”’The loan is to be supported by the issuance of a monthly Irrevocable Standing Payment Order (ISPO) of N33.3 million from inception to February 2021 as well as N254 million monthly, during the three years of principal and interest repayment period.
“In view of this, I wish to seek the authorisation of the state House of Assembly to accept the loan facility from Zenith Bank Plc. and issue an appropriate ISPO in favour of the Bank accordingly.”
The assembly on Tuesday also approved the governor’s request for the approval of N1.5 billion credit facility under the CBN Accelerated Agricultural Development Scheme (AADS).
Okowa said that the credit facility was geared towards the development of the agricultural sector to ensure food security and employment opportunities for the people of the state.
The Majority Leader of the Assembly, Mr Tim Owhefere, moved a motion for the house to receive and approve the letters from the governor.
The motion, which was unanimously adopted by the assembly when put to a voice vote by the speaker, was seconded by Mrs Pat Ajudua, representing Oshimili South Constituency.
Edited By: Tayo Ikujuni/Kayode Olaitan (NAN)
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