FG Grants Okorocha’s N20bn Loan Request

The Federal Ministry of Finance has granted the request of Governor Rochas Okorocha of Imo state to secure a N20billion loan from the Federal Government.  

Findings have shown that if the Imo state government takes the approved N20billion proposed bond issue, the debt profile of the state will be N80billion, Vanguard reports.

It was learnt that Governor Okoroca made the request for the loan through a letter to the Federal Ministry of Finance, DMO/PMD/241//T/7, dated August 25, 2015, and signed by A. M. Daniel-Nwaobis, the permanent secretary, ministry of finance.

The governor request read in part: “an Irrevocable Standing Payment Order, ISPO, for an amount of N402,957,780.91 monthly for 84 months in respect of a N20 billion ISG (Imo State Government) Bond Issuance Programme” to Finance Uncompleted and New Projects.”

In response to the governor’s request, the federal government told him that due to the economy situation at the moment coupled with dwindling oil revenue there is a need for caution in order not on further compound the situation.

However, the federal government added that the debt management office had stated the request could be granted, hence the ministry of finance had not objection for the approval.“Accordingly, I hereby grant a no objection for the state government to issue an ISPO for a monthly deduction of N402,957,780.91 for  84 months in respect of a N20 billion bond for the completion of on-going infrastructure development projects and for new development projects in the state, subject to the state meeting other requirements of the Investment and Securities Act, 2007,” Daniel-Nwaobis said.

In a related development, Osun state Association of Medical and Dental Officers had threatened to embark on an indefinite strike if the state government fails to payoutstanding salaries of its members on or before September 27.

The union demanded that the state governmennt should also remit all outstanding cooperative and contributory deductions from the doctors’ salaries to the appropriate quarters.