The Delta State House of Assembly on Tuesday has approved a loan request by Governor Ifeanyi Okowa for a N20 billion facility from Fidelity Bank Plc.
The request was contained in a letter read by the Speaker, Sheriff Oborevwori, during the plenary of the Assembly in Asaba.
According to the Governor, the request is to fund the state government’s 5% equity in the UTM offshore Limited Floating Liquified Natural Gas (FLNG) Project, adding that the project is under the Central Bank of Nigeria (CBN) real sector support Find/Differentiated cash reserve requirement window.
He said, “The facility is in line with the state government’s intent of diversifying its strategic portfolio by investing in a floating Liquified Natural Gas plant project.
“Delta is expected to invest in the project through a 5% share of the company.”
He also revealed that the facility will increase employment rate for the rising population, enhance local content for Delta, and secure cash flow for the state in the future.
Ferguson Onwo, Majority Leader of the Assembly, moved a motion for the approval of the governor’s request. The motion was seconded by the member representing Ika North East State Constituency, Anthony Elekeokwuri.
The motion was adopted without opposition when put to a voice vote by the speaker.