Plateau Incurred N18b Debt In Eight Years | Independent Newspapers Limited
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Plateau Incurred N18b Debt In Eight Years

Posted: May 15, 2015 at 1:44 am   /   by   /   comments (0)

By Onoja Audu – Jos


Outgoing Plateau State Government has announced that the administration incurred a debt of N18 billion in the eight years that retired Air Commodore Jonah Jang served as Governor.

State Commissioner for Information, Alhaji Mohammed Badu, told newsmen at the Government House, Jos, after the weekly State Executive Council meeting that contrary to the insinuations by the All Progressives Congress (APC) chieftains that the state was owing N200 billion, the government of Jang has nothing to hide about the state finances.

He added that the government was becoming worried about the misinformation regarding the true indebtedness of the state, especially on the bond the government recently secured.

According to Badu, Jang on coming to power in 2007, inherited a debt of N80 billion but was able to clear the debt  within his first term in office.

Badu added that the Jang-led government had to borrow N48 billion to finance the execution of capital projects that are scattered across the three senatorial districts of the state.

Similarly, the state Commissioner for Finance, Comrade Davou Mang, explained the state government in its effort to put the state on sound financial footing, approached the capital market and secured a bond of N28.2 billion loan.

According to commissioner, the aim of the bond was to service its rising debt profile as the bond usually has long gestation period, payable in seven years  with low interest rate.

Mang stressed further that a net issue of N25.3 billion accrued to the state out of the total sum of the bond and was used in financing the loans obtained from commercial banks.

The commissioner explained  that the difference between both figures amounting to N2.9 billion went into sinking funds, which included professional fees and other service charges.

He said from the N25.3 billion, Eco Bank was paid N10 billion, Zenith Bank N10 billion while FCMB was paid N5.3 billion.