The Kwara State government on Wednesday said the proposed N10b loan from commercial banks was a Federal Government-backed facility designed to revive ongoing infrastructural projects in the state, which were stalled by lack of funds.
The State Governor, Abdulfatah Ahmed, who gave the clarification during a meeting with stakeholders in Ilorin, said infrastructure projects which were suspended due to drop in federal allocations would resume across the state by the end of the month once the paperwork for the loan is completed and the money released.
Governor Ahmed noted that the N10b loan became imperative because the drop in allocations had made it impossible to continue ongoing projects and start new ones as the government could barely afford to pay workers’ salaries without assistance.
Providing further details of the proposed facility, Mr. Ahmed added that it was a soft loan with affordable repayment and which had been collateralized against the state government’s share of the Excess Crude Account.
He said the loan would not in anyway impose extra financial burden on the state government or hamper its capacity to meet obligations.
Governor Ahmed commended the Kwara State House of Assembly for approving the loan, an action which he said was based on a shared commitment to enhancing the development of Kwara State despite current financial challenges.
Mr. Ahmed said the state government’s renewed IGR drive would augment any future shortfalls in allocations from the Federal Government, increase the government’s capacity to develop the state and empower the people on a sustainable basis.
The federal government recently repackaged the state government’s loans into a long-term bond to reduce loan repayment and free more funds for meeting monthly obligations.
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