The Delta State House of Assembly has approved the request by Governor Sheriff Oborevwori to take N40bn credit facility for the purpose of clearing backlog of pension arrears.
The House, our correspondent learnt, gave the approval at its maiden plenary session on Tuesday.
The Speaker, Emomotimi Guwor, had read the governor’s letter of request on the floor of the House.
According to the letter, Oborevwori informed the House that his administration was collaborating with the state chapter of the Association of Local Governments of Nigeria to reduce the backlog of accumulated pensions owed retired primary schoolteachers and local government employees.
The letter said the loan being sought would help alleviate the plight of senior citizens of the state who served and retired at the local government level.
The governor added that Zenith Bank Plc had availed the 25 local government councils the said facility in a prorated manner, in tune with their respective indebtedness to pensioners, for which offer letters had been issued to the councils by the bank.
The motion for the approval was moved by the Majority Leader of the House and member representing Aniocha North Constituency, Emeka Nwaobi, and seconded by the member representing Sapele Constituency, Perkins Umukoro.
It would be recalled that three days to end the administration of the immediate-past governor Ifeanyi Okowa, the 7th Assembly approved N71bn loan for the then outgoing administration.