The Taraba State House of Assembly has approved a request by Gov. Darius Ishaku, to access a loan of N1,234,000,000.00 to facilitate the implementation of the World Bank and UNICEF assisted programmes/projects in the State, as well as N1,473,832,845.20 for the payment of the State’s 50% Counterpart Contribution for implementation of UBE Programmes/Projects.
In two separate letters sent to the House, and read at plenary, the members unanimously approved the request by the governor without any debate.
The first letter reads: “in order to facilitate the implementation of the World Bank and UNICEF Assisted Programmes/ Projects, Council resolved to access a Bank facility of the sum of N1,234,000,000.00 only as Counterpart Contribution by the State from Zenith Bank PLC”.
The second letter reads: “In order to meet conditions precedent to accessing and utilising the Universal Basic Education Commission’s 2018 grant of N1,473,832,845.20 only to the State Universal Basic Education Board, Council resolved to accept the Credit facility offer of Zenith Bank PLC of N1,473,832,845.20 as the State’s 50% Counterpart Contribution for implementation of UBE Programmes/Projects in the State”.
According to the letters, both loans which bear a 21% interest rate, will have a tenor of “12 months with grace period of seven days to be allowed within which there will be no penal charge on late repayments/past due amount”. They “shall also be made available within three months from the date of acceptance of offer”.
Both loans will however, be repaid in 12 equal and consecutive monthly repayments of N114,902,396.82 and N137,234,138.11 respectively, “covering principal and interest to be debited from Taraba State’s Statutory Allocation (FAAC) Account domiciled with Zenith Bank PLC”.