Zenith Bank To Make Advance Payment From N22.6B Promissory Note To Delta For FG Roads

The management of Zenith Bank Plc has offered to make advance payment from the Delta State Government N22. 6billion promissory note domiciled in the bank for federal government executed roads.

BIGPEN ONLINE learnt that the federal government has been indebted to the state to the tune of N76.3 billion expended on the construction and rehabilitation of federal roads.

Since the reconstructtion, rehabilitation and resurfacing of the several federal roads, the federal government only recently made a promissory note to the state’ bankers, Zenith bank to make payment to Delta State but not until 2021 when the money must have matured.

But the Governor Ifeanyi Okowa-led government, had reportedly asked to obtain a discount facility of the promissory note from Zenith Bank PLC in order to receive immediate value for the whole promissory note.

BIGPEN ONLINE gathered that the State Executive Council had already ratified the Zenith Bank Promissory note discounting facility of N22,695,597, 917 (Twenty Two Billion, Six Hundred and Ninety Five Million, Five Hundred and Ninety Eight Naira, Sixty Two koko only ) issued by the Federal Government to the State.

Following this, it was learnt that the State House of Assembly on Tuesday passed a resolution approving the request of the State Governor in support of the cabinet’s rectification of the promissory note to Zenith bank.

The Governor’s request was contained in a letter to the House which was read by the Speaker Rt  Hon. Sheriff Oborevwori who presided over plenary on Tuesday.

According to the governor’s letter, over the years the state government had  reconstructed, rehabilitated and resurfaced several federal roads amounting to the sum of N76,357,226,598.62 only.

Okowa said efforts were made to recover the expended funds from the Federal Government through the presentation of claims to relevant Senate and House of Representatives Committees and the Federal Government issued a promissory note in the sum of N22,695,597, 917.00 to the Delta state government.

Governor Okowa in the letter said the promissory note which represented thirty percent of the amount spent on the Federal roads is scheduled to mature in February 2021, adding that there was an urgent need of funds to complete numerous roads projects before the onset of the rainy season .

He said due to the urgent need it had become expedient to obtain a discount facility of the promissory note from Zenith Bank PLC in order to receive immediate value for the promissory note.

Governor Okowa noted that the State Executive Council at its third meeting held on March 19, 2019 ratified the Governor’s approval of the Federal Government promissory note.

He emphasised that by implication the state government had accepted the Zenith Bank offer to discount the promissory note of N22,695,597,917.00 at a discount rate of eighteen percent and management fee of one point zero percent flat payable upfront.

The Governor said the purpose of the letter was to sort the resolution of the House in support of the discounting of the promissory note N22,695,597,917.00 from Zenith Bank Plc.