The Enugu State House of Assembly has approved the N15 billion loan request by the Enugu State Government from the Central Bank of Nigeria (CBN).

This request was approved during Thursday’s plenary session as the loan request was read by the House Speaker, Chief Edward Ubosi.

The speaker revealed that the state government intends to use the loan to finance infrastructure development in the state.

The speaker revealed that the state government was finding it difficult to finance infrastructural projects due to the current economic challenges.

He also stated that the loan facility which would be domiciled by United Bank for Africa, had a 10-year repayment plan of nine per cent per annum, with a 12-month moratorium.

The letter from the Governor indicates that the CBN infrastructure finance loan, when accessed would assist in carrying out major infrastructural projects across the state.

Lawmakers noted the necessity of the loan which would enable the state government meet its infrastructure development obligations.

What you should know

Recall Nairametrics reported in September that the implemented initiative of the Central bank of Nigeria to mitigate COVID-19’s economic impact accounted for about 3.5% of Nigeria’s Gross Domestic Product.

The CBN Governor, Godwin Emefiele said: “Given the above consequences of the COVID-19 pandemic on key economic variables, the CBN took a number of measures to mitigate the long-term effects on the growth prospects of the economy.”

He also stated that policy measures were introduced to restore stability in the economy by supporting households that have been severely affected by the pandemic.

The CBN Governor mentioned other targeted interventions that were introduced to support critical sectors, such as agriculture, manufacturing, energy, and health.

Hence, cumulatively the bank’s intervention efforts represented about 3.5% of the GDP.