The Enugu State House of Assembly, on Monday, approved the request of Governor Peter Mbah to source for a N170bn facility to fund capital projects, among others, in the state.
The lawmakers unanimously approved the request, saying it would enable the government to deliver on its mandate, especially in the provision of critical infrastructure needed to attract investments to the state.
The Assembly, which is dominated by the Labour Party, also expressed delight that the loan would run its full course in the first tenure of the governor.
A letter signed by the Secretary to the State Government, Prof. Chidiebere Onyia, and addressed to the Speaker, Uchenna Ugwu, disclosed that the request was sequel to the approval of the Enugu State Executive Council of the offer of N100bn bank guarantee line, N10bn term loan and N10bn overdraft facility from Fidelity Bank and N50bn credit facility from Globus Bank.
The loan will be repaid via an Irrevocable Standing Payment Order on consolidated Enugu State IGR accounts, which would be domiciled in Fidelity Bank and domiciliation of JAAC/FAAC/Infrastructure Support.
The Globus Bank Plc only opened a branch in Enugu on October 2, 2023.
Mbah had, while receiving the management team of the bank, led by the Managing Director/Chief Executive Officer, Elias Igbinakenzua, in his office, promised to move Enugu from a public sector to a private sector-driven economy.
