From Tom Garba,Yola
The Members of Adamawa House of Assembly on Wednesday approved a request by Governor Mohammed Umar Jibrilla Bindow to borrow N8.7 billion to finance some projects in the state.
At the House plenary session chaired by the Speaker, Hon. Ibrahim Mijinyawa, the Deputy Majority Leader, Mohammed Matawalle, raised a motion to approve the loan facility sought by the state government.
Matawalle, who represents Gurin state constituency, described the loan as a saving grace to the people of Adamawa state.
Chairman, House Committee on Appropriation, Budget and Planning, Hon. Abdulrahaman Abubakar Isa seconded the motion.
He described the loan as “timely” and that “it will go a long way in bringing infrastructure development in the state as there is no money to do that at the moment because of mismanagement of the state’s finances by the past government.”
In a letter requesting for the approval Bindow said his administration as facing serious financial challenges incurred by the previous government. He said the N8.7 billion would be channelled to urban and rural roads construction as well as rehabilitation of hospitals and other developmental projects.
He assured the House that the terms of the N8.7 billion loan would be consolidated and restructured with the state’s existing loan obligation of N11.7b with Zenith Bank Plc.
The Assembly also approved the governor’s request to restructure all commercial bank loans owned by the state to federal government bonds.
The commercial bank loans owed by the state as at June 30,2015 show that Zenith Bank has an outstanding term loan of N11,700,547,558.6 and the same bank has another term loan of N8,700,000,000 that amounted to N20,400,547,558.6 with the state government.