The Kwara State Government has said that the proposed N10 billion loan from commercial banks is a federal government-backed-facility designed to revive on-going infrastructural projects in the state which were stalled by lack of funds.
The state Governor, Alhaji Abdulfatah Ahmed, who gave the clarification during a meeting with stakeholders in Ilorin, said infrastructure projects which were suspended due to drop in federal allocations will resume across the state by the end of the month once the paperwork for the loan is completed and the money released.
Ahmed noted that the N10 billion loan became imperative because the drop in allocations had made it impossible to continue on-going projects and start new ones as the government could barely afford to pay workers’ salaries without assistance.
Providing further details of the proposed facility, Ahmed added that it was a soft loan with affordable repayment and which has been collateralized against the state government’s share of the Excess Crude Account.
He therefore emphasised that the loan will not in anyway impose extra financial burden on the state government or hamper its capacity to meet obligations.
The governor commended the state House of Assembly for approving the loan, an action which he said was based on a shared commitment to enhancing the development in the state despite current financial challenges.