ASABA/Nigeria: The Delta State House of Assembly has passed a resolution approving the request of the State Governor, Senator Ifeanyi Okowa in support of the State Executive Council’s ratification of Zenith Bank Promissory note discounting facility of #22,695,597, 917 (twenty two billion, six hundred and ninety five million, five hundred and ninety eight naira, sixty two koko only ) issued by the Federal Government to the State.
The Governor’s request was contained in a letter to the House and read by the Speaker Rt. Hon. Sheriff Oborevwori who presided over plenary on Tuesday.
According to the letter, Governor Okowa said over the years the state government had reconstructed, rehabilitated and resurfaced several federal roads amounting to the sum of #76,357,226,598.62 ( seventy six billion, three hundred and fifty seven million, two hundred and twenty six thousand, five hundred and ninety eight naira, sixty two kobo only ).
He said efforts were made to recover the expended funds from the Federal Government through the presentation of claims to relevant Senate and House of Representatives Committees and the Federal Government issued a promissory note in the sum of # 22,695,597, 917.00 (twenty two billion, six hundred and ninety five million, five hundred and ninety seven thousand, nine hundred and seventeen naira only) to the Delta state government.
Governor Okowa in the letter said the promissory note which represented thirty percent of the amount spent on the Federal roads is scheduled to mature in February 2021 adding that there was an urgent need of funds to complete numerous roads projects before the onset of the rainy season.
He said due to the urgent need it had become expedient to obtain a discount facility of the promissory note from Zenith Bank PLC in order to receive immediate value for the promissory note.
Governor Okowa noted that the State Executive Council at its third meeting held on March 19, 2019 ratified the Governor’s approval of the Federal Government promissory note discounting facility stressing that by implication the state government had accepted the Zenith Bank offer to discount the promissory note of #22,695,597,917.00 at a discount rate of eighteen percent and management fee of one point zero percent flat payable upfront.
The Governor said the purpose of the letter was to sort the resolution of the House in support of the discounting of the promissory note #22,695,597,917.00 from Zenith Bank Plc.