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Ekiti Approves N3 billion Loan For UBEC Counterpart Fund



Ekiti State Government has approved the sum of N3 billion loan for the payment of counterpart funds required to access and benefit from the 2019/2020 projects of the Universal Basic Education Commission (UBEC).

The amount being borrowed will enable the state government to meet up with its statutory 50 per cent counterpart obligation of the funds to be released by the commission.

The state governor, Dr Kayode Fayemi has also tendered the memorandum for the amendment of the Ekiti State Debt Management Law 2020 at the council, to enable the state establish State Debt Management Office (SDMO).

The government in a statement signed by the Commissioner for Information, Muyiwa Olumilua, said the approval for the term of the loan was given at the virtual meeting of the State Executive Council held in Ado Ekiti , on Thursday.

The fiscal step, according to Olumilua became imperative on the premise that, the state will not be allowed to access the fund unless the counterpart fund is made available.

The statement said: “Memorandum on the offer of N3, 031,076,059.82 term loan for 2019 and 2020 Ekiti State Government counterpart contribution for SUBEB/UBEC projects:

“Being a Federal and State Government partnership, both tiers of government are required to come up with their respective 50 per cent contributions before the total sum is released to the state government.

“It should be recalled that Governor Kayode Fayemi has substantially defrayed the outstanding counterpart funds for the years 2016, 2017 and 2018 UBEC/SUBEB projects, which was initially neglected by the previous administration, and the repayment is still ongoing”.

Olumilua added that Governor Fayemi has constituted three separate monitoring units, saddled with the responsibility of carrying out an infrastructure audit in the Education sector, to determine the precise needs of the various schools.

The commissioner stated that the  mandate of   bodies  include monitoring of execution of all SUBEB projects in the State, to ensure that all contracts awarded follow due process and duly executed .

“Ekiti State Government in 2011, put in place the law titled “Regulation to provide for the Establishment of the State Debt Management Office, and for connected purposes.

“Nine years later, the contents and realities of the Regulation are becoming obsolete, due to economic changes and other factors in the global financial order, and practices.

“The draft of the reviewed law was prepared by the Ministry of Finance, and the legal clearance of the Ministry of Justice was obtained. With the approval of the Executive Council, the bill will be forwarded to the Ekiti State House of Assembly for legislative processing, and passage into law”.