Benue borrowed only N53.5b in one year, says Ortom

• Delta lawmakers approve N14.16b loan

Benue State Governor, Samuel Ortom, has said contrary to reports that his administration has borrowed over N100 billion in the past one year, the state has only a loan profile of N53.5 billion.

Ortom made the clarifications at Katsina-Ala, Gboko, Adikpo and Vandeikya during his on-going town hall meetings with stakeholders across the state.

He explained that when he took office he inherited a deficit treasury and had to borrow N10 billion to pay May and June, 2015 salaries.

According to him, the Federal Government offered states loans of N28 billion and N10 billion respectively to clear four months salary arrears as well as provide critical infrastructure at the state and local council levels.

He said his administration also took a N5.5 billion facility to pay counterpart funding for joint projects with development partners including the Universal Basic Education Commission (UBEC), which matched the N3.8 billion the state paid with an equal amount, bringing the total amount to N7.6 billion for investment into primary schools.

Meanwhile, Delta State lawmakers yesterday unanimously approved another N14.16 billion Federal Government loan facility for the state.

The request for the loan was contained in a letter by Governor Ifeanyi Okowa. It was approved at plenary session presided over by Deputy Speaker Friday Ossai Osanebi, who read out the letter to the lawmakers.

This is coming on the heels of a recent announcement of Central Bank of Nigeria (CBN) bail out loan of N20.9 billion approved by the Federal Government to support states in meeting their obligations.

The governor explained that the facility will attract a nine per cent interest with a moratorium of one year for 10-year tenure.

Okowa said: “The facility is to enable the state government bridge some critical funding gaps in connection with the financing of infrastructural development projects.”