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Oyo State House of Assembly has given its nod to Governor Seyi Makinde to access N18.7billion Federal Government bridge facility loan meant to cushion the effect of COVID-19 pandemic.
The request was contained in a letter sent to the legislature by the governor and read during late Monday’s emergency plenary by Speaker Adebo Ogundoyin.
President Muhammadu Buhari approved the bridge facility for the 36 states and it will be accessed from the Central Bank of Nigeria (CBN).
It is meant to support states, following the resumption of monthly deductions for the repayment of their loan facilities.
The Federal Government had suspended the monthly repayment of loan facilities by states due to the effects of COVID-19 pandemic.
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The N18.7billion, which will be disbursed in six tranches (six months instalment) of N3.1billion each, is expected to be repaid monthly for 30 years (360 months).
Minority Leader Asimiyu Alarape, who also suggested that the loan facility should be used to develop key sectors, however, urged the state government to be wary of the consequences of many loans.
Speaker Ogundoyin said it was thoughtful of the Federal Government to give financial support to the state governments, considering the projects lined up in the states.
