Adamawa Governor Shocks Citizens with a fresh loan of 18bn

The government is also working to get an N100 billion bond to help the state’s agricultural sector.

In Summary

• The money is needed to finish some important ongoing projects in the state – Governor Fintiri,
• The purpose of the FG intervention facility is to help states ease the burden of loans and intervention servicing incurred by previous administrations – Commissioner
• In the year 2020, the state generated N101 billion, spent N13 billion servicing debts, borrowed N30 billion, and maintained an N140 billion debt profile – Director Treasury
• Hon Yapak of the opposition parties decried the N100 billion bond proposal, claiming that an N43 billion loan had yet to be accounted for.

Loan – Amid concerns over the state’s massive debt portfolio and diminishing revenues, the Adamawa State Assembly approved consent for the state government to acquire an N18.746 Federal Government intervention facility during its plenary session on Monday.

The state’s total debt will rise from N140 billion to N158 billion as a result of the new credit arrangement.

According to records, the state requested an N30 billion credit facility in the 2020 fiscal year, consisting of an N3 billion external loan and an N27 billion internal loan to run the state.

The government is also working to get an N100 billion bond to help the state’s agricultural sector.

Some worried citizens, notably the member representing Verre constituency, Abdullahi Yapak, have denounced the state government’s decision to borrow at will, claiming that the future of the next generation is at risk.

Governor  Ahmadu Umaru Fintiri has requested that the Assembly provide the state government access to the facility in order to complete several major current projects in a letter dated October 22, 2021.

Governor Fintiri informed the members that President Muhammadu Buhari has generously authorized a bridging funding facility for all of Adamawa’s states, as a result of his administration’s request.

The facility was approved by the State Executive Council at its 9th (2021) meeting on Friday.

On Monday, when the speaker, Rt. Hon. Aminu Iya Abbas, read/presented the letter, the lawmakers unanimously evaluated it and accepted it as requested.

The resolution came after the Majority Leader, Hon. Hammantukur Yetisuri (Jada Mbulo), made a motion to that effect, which was seconded by the Minority Leader, Hon. Muhammed Mutawali (Girei).

Following the debates, the Speaker, Rt. Hon. Aminu Iya Abbas, directed the clerk to forward the members’ resolution to the executive arm for action.
Dr Umar Garba Pella, the Commissioner for Information and Strategy, told reporters at the government house following the emergency SEC meeting that the loan will enable the state to offset the impact of repayment of federal government loans and intervention facilities.