The Kwara state House of Assembly has approved the state government request to access the Federal Government Budget Support Facility (BSF) loan.
The approval which was given unanimous by the house members after the Speaker; Doctor Ali Ahmad read the Governor’s message on the request during an emergency plenary allowed Governor Ahmed to access not more than N1.3 billion whenever there was shortfall in the state monthly allocation.
The monthly loan which aimed at enabling state government to perform its obligations if there is a sudden drop in monthly allocation from the Federal Government must be approved by state assemblies.
Governor Ahmed in his message to the house said the Federal Ministry of Finance had identified and negotiated with potential lenders and had formally convened an offer of a total sum of N14.16 billion to support the Kwara State Government.
The loan according to the Governor’s message will be made available in three tranches.
The Speaker, Dr Ali Ahmad said through the BSF, the Federal Government would make N90 billion available for all the 36 states to bridge the lack of funds to support the budget.
He said the state government would be able to access N1.3 billion wherever the state allocation drops less than expected.
He said the loan was to the effect of the financial challenges being experienced in the state.
Ahmad added that payment of workers’ salaries must be the priority of the government whenever the fund is accessed.
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