There
was mild drama on Tuesday when the Senator representing Kogi East Senatorial
District, Jibrin Isah Echocho was shut down for praising Kogi State Governor
Yahaya Bello at the Senate Committee on Foreign and Local Debts which he is a
member.
The
Clifford Ordia led-committee on Tuesday held a public hearing for states seeking
for loans from the World which Kogi State was present to defend its $100
million request.
Senators
from Kogi State who are members of the Committee took turn to comment on the
presentation of the request by the Commissioner for Finance, budget and planning,
Asiwaju Asiru Idris, Sen. Jibrin Isah began to praise Yahaya Bello for
“performing optimally” rather than addressing the foreign loan
issue.”
But,
the Committee Chairman, Senator Clifford who was not at ease reminded him of
the rules, saying: “Distinguished, we have no time for this, can you please
address the matter before us?”
Senator
Echocho who spoke after Smart Adeyemi of Kogi East Senatorial District thanked
him and said: “The loan would address insecurity and infrastructure in the
state” adding that the state would develop agricultural sector where jobs would
be provided for the teeming youth in the state.
In
his submission, Kogi State Commissioner for Finance, budget and planning,
Asiwaju Asiru Idris who represented the State Governor explained that the World
Bank loan request of $100 million would be repaid in the next 25 years.
Commissioner
Idris pointed out that the debt profile
of Kogi State was within the acceptable range for the state to go a borrowing.
“As
we speak today, Kogi State’s debt profile as at 31st December 2019 is N123
billion. We can still borrow because we have looked at the analysis of the loan
and the very important factor to borrowing money from the World Bank is that
the repayment/deduction must not be more than 40% of the allocation for the
preceding twelve months.
“Checks
on our debt profile deduction is 28% against the threshold of 40%.
“It
also shows that your total liability should not exceed 250% of the total amount
of loan you are seeking.
“In
that we have calculated and documents submitted as at today is 128%. The loan
when taken is basically to develop infrastructure.
Kogi
State Commissioner appeared before the Committee with other top government
officials of the state.
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