Senator Dino Melaye has raised the alarm that the Kogi state government is planning to borrow a whooping $500 million without approval of the National Assembly.
The Kogi state senator, who dumped the All Progressives Congress, a few months back for the Peoples Democratic Party, made this known on the floor of the Senate on Wednesday.
According to Melaye, the Federal Government through the Ministry of Finance is in on the plan to borrow the said sum, having “guaranteed and signed along Kogi State Government without recourse to the National Assembly.”
In his words:
Kogi State Government owes about N40 billion local debts for payment of salaries that was never paid. Furthermore, Kogi State Government has approached East-West Capital Corporation of United Arab Emirates owned by one Mr Mahmoud for a loan of $500m.
This fresh loan has been christened loan refinancing of the Kogi State local debt in order to avoid coming to the National Assembly for approval. The Federal Government through the Ministry of Finance has guaranteed and signed along Kogi State Government without recourse to the National Assembly.
“Kogi State should be borrowing what it owes locally which is 40 billion naira and not 180 billion naira ($500m). Obviously, there is a plan to defraud the state and fund both elections in Kogi State and presidential.”