Bayelsa to borrow 43.57 billion naira to increase 2022 budget
The borrowing plan is contained in Bayelsa’s 2022 finance bill.
Official document checks by the Nigerian News Agency (NAN) indicate that the debt has increased following the recent approval granted by the State House of Assembly to Governor Douye Diri to obtain an additional loan of N18.7 billion.
According to data obtained from the Debt Management Bureau’s website, Bayelsa’s debt profile as of June 2021 stood at over 150.60 billion naira, compared to the 123 billion naira inherited when it took over. function in February 2020.
On October 20, Diri presented the 2022 Appropriation Bill to the Bayelsa Assembly, which then sent it to its Appropriations Committee for legislative action.
NAN has learned that the 2022 Appropriation Bill, currently under consideration by the House Appropriations Committee, estimates the running costs of governance at 70.56 billion naira, or about 22% of the budget.
The state has set aside 61.75 billion naira for debt service and repayments.
Diri, in a letter to the assembly seeking the consent of lawmakers for the borrowing plan, explained that the N18.7 billion loan “is a bridging facility from the federal government to cushion the effect of repayment of debt. intervention facilities by the state government “.
The governor said the loan has a term of 30 years and will allow the state government to meet its financial obligations.
It will be recalled that on October 6, the assembly approved Diri’s request to restructure existing loans obtained by the state government from commercial banks in order to free up more resources for ongoing projects.
The approval was the second time in 16 months that the assembly had granted Diri’s request to renegotiate and restructure outstanding commercial bank loans following a similar approval in June 2020.
The 18.7 billion naira amount is the fourth in a series of loans that the Diri administration has taken following the approval of the House of 24 Members to collect since its inauguration on February 14, 2020.
Barely two weeks in power, in March 2020 the government took out a 2.9 billion naira loan to buy cars for the governor and deputy governor as well as senior government officials.
Also in November 2020, the government borrowed 17 billion naira from several sources and obtained another loan of 3.5 billion naira in December of the same year.