On Monday, the Enugu State House of Assembly approved a N170 billion loan request from Gov. Peter Mbah to fund major infrastructure projects in the state.
The loan will be sourced from Fidelity and Globus banks, and is intended to finance the construction of roads, hospitals, and other critical infrastructure. Speaker of the assembly, Chief Uche Ugwu, stated that the loans will help the state government to deliver much-needed infrastructure projects.
It is hoped that the projects will boost economic growth and improve the standard of living for residents of Enugu State.Ugwu noted that the Term Loan has an interest rate of 22% per annum, and is subject to review in accordance with market conditions. The loan's repayment period is 48 months.
The Over Draft Facility loan, which has a 12-month repayment period, will ensure that workers' salaries and other recurring expenses are paid on time. The State Executive Council had approved the loans on October 6, 2022.
During the discussion, Iloabuchi Aniagu, the Minority Leader of the House, praised the governor for presenting the loan request, saying that it was timely and would enable the government to pursue its development agenda.