Governor Muhammad Badaru Abubakar of Jigawa State has written the state House of Assembly seeking their approval to access N18.7 billion loan.
This was contained in a letter sent to the state assembly and read before the floor of the house by the majority leader of the house, Alhaji Habu Maigatari.
He said the governor said the internal loan will be used to cushion the effects of loan payment by the federal government.
The letter obtained by Our Source with the title “offer Bridging Finance to cushion the effect of loan payment by the federal government” was signed by the Acting Governor Alhaji Umar Namadi.
“I am pleased to inform the Honourable Speaker that the state government is in receipt of a letter from the federal ministry of finance, budget, and national planning notifying us of the gracious approval of the president for bridging loan facility of about N656.112 billion available to 35 out of 36 states of the federation”.
“The total loan amount to Jigawa State is over 18.746 Billion Naira to be paid in 30 years with 9% interest annually on monthly repayment mode and a moratorium period of 2 years,” the statement said.
The House, however, unanimously approved the governor’s request to access the loan for the development of the state.
The majority leader of the House and member representing Maigatari Alhaji Habu Muhammad said with the loan, there would be no other deduction from the monthly federal allocation and that would allow the state government to execute more development projects for its citizens.