The Ekiti State government has approved the borrowing of a sum of N3 billion to pay for the Universal Basic Education Commission (UBEC) counterpart funding.
The funding, according to statutory arrangements requires both the state and Federal Government to contribute an equal amount to be accessed by the state.
A statement signed by the Commissioner for Information, Muyiwa Olumilua, disclosed that the approval for the loan was given at the virtual meeting of the State executive council held in Ado Ekiti, on Thursday.
Olumilua said the loan is to enable Ekiti State Government meet up with its statutory 50% counterpart obligation towards the release of funds for UBEC/State Universal Basic Education Board (SUBEB) projects for the year 2019 and 2020.
He noted that the fiscal step became imperative on the premise that failure to pay the counterpart fund would disqualify the State from receiving her share of the UBEC/State Universal Basic Education funding.
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% 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, tasked with the assignment of carrying out an infrastructure audit in the education sector, to determine the precise needs of the various schools.
The commissioner noted that the mandate of bodies include monitoring of execution of all SUBEB projects in the State, to ensure that all contracts award follow due process and duly executed .
Olumilua added that Fayemi also tendered the memorandum for the amendment of the Ekiti State Debt Management Law 2020 at the council to enable the state establishes State Debt
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