The Sokoto State House of Assembly has approved the state government’s request to obtain a loan of over N2.07 billion from Zenith Bank.
Part of the money would be used as counterpart fund for the Universal Basic Education( UBE).
This followed the adoption of a motion moved by the Assembly’s Leader, Alhaji Garba Bello (APC- Yabo).
The motion followed a letter from Gov. Aminu Tambuwal which was presented to the floor of the Assembly on Thursday by the Speaker, Alhaji Salihu Maidaji.
It read: “I am pleased to inform the state Assembly that Zenith Bank Nigeria Plc has offered the state government a term loan facility of N 1,042,027,027.02.
” This is to enable the payment of counterpart funding for the state universal basic education, 2016.
“The facility attracts an interest rate of 19.5 per cent, one per cent management fee, one per cent commitment fee.
” Repayment would be done through an Irrevocable Standing Payment Order (ISPO) at N 96,278,477.30, per month for a duration of 12 months.”
The letter also indicated that the bank had also offered a term loan of N1,033,044,900.00 to enable the payment of counterpart funding for Nigeria Erosion and Water Shed Management project.
“Moreover, the facility attracts an interest rate of 19 per cent, one per cent management fee, one per cent commitment fee and repayment through ISPO at N52,074,364.92 per month for a duration of 24 months,” it said.
The letter said that the government was seeking the Assembly’s consideration of the offer to enable it benefit from the facility so as to access the counterpart funding projects.
Bello said that the facilities would enable the government to improve the standard of education and agricultural development for the overall development of the state.
After the members unanimously accepted the motion, the Speaker said: “the Assembly will allow the state government to obtain the required loan facility to enable the payment of the counterpart funding”.