Obiano’s CBN N10 Billion and Mark Okoye, Special Adviser to the Governor on Economic Planning & Budget explanation

www.odogwublog.com brings you the explanation of Governor Willie Obiano’s loan N10 Billion according to gospel by Mark Okoye, special Adviser to Obiano on Economic Planning and Budget explanation ………………….see details below



ACCESSING CBN INFRASTRUCTURE DEVELOPMENT FACILITY
1.    Terms of CBN Infrastructure Development Facility
•    Size of Facility:        Up to N10,000,000,000
•    Interest Rate:         Maximum of 9.0%
•    Tenor:             20 years or 240 months
•    Type of facility:        Soft loan to ease pressure in States and not Bailout Funds

2.    Conditions Precedents for Approval by CBN
•    Governor to prepare letter to the Central Bank of Nigeria & Federal Ministry of Finance (FMF) conveying its application to access the infrastructure facility, amount required and account details to be credited
•    State Executive Council resolution to access the facility and exact use of proceeds
•    State House of Assembly resolution to access the facility and exact use of proceeds
•    Irrevocable Standing Payment Order letter to FMF and commercial bank in respect of the CBN infrastructure facility
•    Letter to FMF stating the State’s level of indebtedness (already due contractor obligations and payments may suffice)
•    Offer letter from commercial bank to the State conveying above-stated terms of the facility.

3.    Indicative Amortization Schedule
                   
Years    Beginning Balance    Interest    Principal    Ending Balance    Monthly Payment
1    10,000,000,000     900,000,000     195,464,750     9,804,535,250     89,972,596
2    9,804,535,250     882,408,172     213,056,578     9,591,478,672     89,972,596
3    9,591,478,672     863,233,081     232,231,670     9,359,247,003     89,972,596
4    9,359,247,003     842,332,230     253,132,520     9,106,114,483     89,972,596
5    9,106,114,483     819,550,303     275,914,447     8,830,200,036     89,972,596
6    8,830,200,036     794,718,003     300,746,747     8,529,453,289     89,972,596
7    8,529,453,289     767,650,796     327,813,954     8,201,639,335     89,972,596
8    8,201,639,335     738,147,540     357,317,210     7,844,322,126     89,972,596
9    7,844,322,126     705,988,991     389,475,759     7,454,846,367     89,972,596
10    7,454,846,367     670,936,173     424,528,577     7,030,317,790     89,972,596
11    7,030,317,790     632,728,601     462,736,149     6,567,581,641     89,972,596
12    6,567,581,641     591,082,348     504,382,402     6,063,199,238     89,972,596
13    6,063,199,238     545,687,931     549,776,819     5,513,422,420     89,972,596
14    5,513,422,420     496,208,018     599,256,732     4,914,165,687     89,972,596
15    4,914,165,687     442,274,912     653,189,838     4,260,975,849     89,972,596
16    4,260,975,849     383,487,826     711,976,924     3,548,998,925     89,972,596
17    3,548,998,925     319,409,903     776,054,847     2,772,944,079     89,972,596
18    2,772,944,079     249,564,967     845,899,783     1,927,044,296     89,972,596
19    1,927,044,296     173,433,987     922,030,763     1,005,013,532     89,972,596
20    1,005,013,532     90,451,218     914,562,314     0     89,972,596

Total of 240 payments:         N21,909,295,002
Total interest payments:    N11,909,295,002


Mark Okoye
Special Adviser to the Governor on Economic Planning & Budget
November, 2015