FG grant N14.1bn Loan to Plateau State

The Federal Government under the Federal Guarantee Conditional Budget Support Scheme has approved a loan of N14.1 billion to Plateau State government

Revealing the information in his office on Monday, the Plateau State commissioner for Finance, Hon. Tamwakat Weli, said the approval was in recognition of the fiscal prudence of Governor Simon Lalong’s administration.

Hon. Weli said:

“The federal government has earmarked the sum of N14.1 billion naira to Plateau State. This money would be disbursed to the state in three tranches of N1.3 billion for three consecutive months. Thereafter, the balance will be disbursed over a period of nine months in equal amount of N1.1 billion only.

“The interest rate for the loan is nine per cent for the tenure of 10 years with one year moratorium before repayment begins. The repayment is secured by future allocations and funds due to the Plateau State from the federal government.”

The commissioner stressed that the loan is coming at a time the state government offsets the outstanding salaries for state and local government workers with the second tranches of the salary bailout of N 5.2 billion naira secured from the federal government.