FG Approves N14bn Loan For Plateau State | Independent Newspapers Limited
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FG Approves N14bn Loan For Plateau State

Simon Lalong, PDP
Posted: Jul 12, 2016 at 6:08 am   /   by   /   comments (0)

Isuma Mark

Abuja – The Federal Government has approved N14.1 billion as loan to Plateau State government.

The loan was granted under the Federal Government Guarantee Conditional Budget Support Scheme.

The scheme was designed to assist states meet some key obligations such as payment of salaries, pension, among others.

Revealing this to newsmen on Monday, Plateau State Commissioner for Finance, Hon. Tamwakat Weli, said fiscal prudence of Governor Simon Lalong’s administration led to the granting of the loan.

“The Federal Government has earmarked the sum of N14.1 billion for Plateau State,” the commissioner announced.

He said that “this money would be disbursed to the state in three tranches of N1.3 billion for three consecutive months. Thereafter, the balance will be disbursed over a period of nine months in equal amount of N1.1 billion only,” he explained.

According to him, “The interest rate for the loan is nine percent for the tenure of 10 years with one year moratorium before repayment begins. The repayment is secured by future allocations and funds due to Plateau State from the Federal Government,” Weli said.

He further said the state government had offset a huge part of the outstanding salaries for state and local government workers, explaining that this loan was coming at a time the second tranche of the salary bailout of N5.2 billion was secured from the Federal Government.

Plateau is one of the states that has failed to pay workers. This has forced workers to embark on industrial action. Nasarawa State workers are on strike as well as Kogi, Niger and others.

Some states have also embarked on retrenchment as they struggle to pay workers amid dwindling revenue.