The Taraba state Government is set to take a N14.16 Billion Facility under the Federal Government Conditional Budget Support Facility subject to meeting certain conditions, as resolved by the National Economic Council.
A letter sent to the Taraba state House of Assembly by Governor of Taraba state, Arc. Darius Ishaku, dated June 28, 2016, seeking the approval of the House, stated that the ‘state has been formally offered the sum of N14.16 Billion…. and shall be available in three tranches.
According to the letter, the facility was due to the economic meltdown as a result of the fall in the price of crude oil which hampers the ability of states to discharge their responsibilities.
The letter reads:‘The disbursements are conditional upon the initial financial review and the attainment of targets to be outlined in an individually tailored Fiscal Sustainability Plan (FSP).The terms of the Fiscal Sustainability Plan (FSP) were agreed at the National Economic Council Meeting held on May 19,2016.This subsidized interest rate of 9 per cent, one year moratorium and ten year tenure was agreed upon. Repayments have been securitized against future dividends or refunds due from the Federal Government’.
The Speaker, Abel Peter Diah, presided over the plenary and read the letter without any debate. The governor concluded in the letter that ‘in order to move our state to another level, we need this funding programme.
The consent of the members on the document was sought through a voice vote and by a unanimous consent, the House approved the Facility. The Speaker then directed the Clerk of the House, to communicate the governor on the development.
However, Speaker of the House, Abel Peter Diah, in his remarks, stressed that the Facility was only meant for capital projects and not recurrent expenditure.
Meanwhile, the House has adjourned sitting to July 11, 2016, to enable members celebrate the Sallah.