The Niger Delta Development Commission (NDDC) has clarified that its intention to secure N1 trillion from development and commercial banks is aimed at financing the completion of existing legacy projects.
In a statement signed by its Director of Corporate Affairs, Pius Ughakpoteni, the commission expressed gratitude for the concerns raised in certain circles regarding the plan to acquire the credit facilities.
The Senate, exercising its judgement, approved the 2024 budget of N1,911,844,833,046 from the NDDC which includes provisions for obtaining N1 trillion from development and commercial banks.
NDDC said: “It is important to clarify that this fund will be deployed to complete a total of 1,006 legacy projects spread across the region, which includes roads, bridges, electricity projects, school buildings, hospitals, shore protection and reclamation, among others.
“The arrangement is for the budget to be funded through statutory provision and borrowings to curb the inflation rate and ensure that quality projects are delivered to the Region on time.
“While emphasizing public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in regional roads to enhance transportation and other sectors.
“This marks a critical step towards diversifying our source of funding.
The main emphasis will be the completion of many ongoing legacy projects that have advanced greatly”.
The commission stated its anticipation that by the conclusion of the 2024 fiscal year, it would have finished over 200 kilometres of roads throughout the Niger Delta region.
The commission said: “We urge our stakeholders to appreciate the fact that Regional Development needs a robust funding mechanism to effectively address specific and urgent development needs in the Niger Delta region.
“Obviously, timely and flexible financial decision-making is crucial to responding effectively to dynamic regional challenges.
“The funding plan is meant to insulate the NDDC from the inflationary pressure which is impairing the ability of the Commission to complete its development projects on schedule.
“There is no doubt that funding is critical to the development of the Niger Delta region and the implementation of the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration.
“We commend the 10th National Assembly for always supporting us in the urgent task of developing the Niger Delta region. The expeditious passage of our 2024 budget underscores the devotion of the lawmakers to regional development and the greater welfare of the Niger Delta people.
“We appeal to our stakeholders to refrain from making hasty judgments on our initiative to pool resources for urgent development purposes. They can be rest assured that we are dedicated to the development of the Niger Delta region and the welfare of its people.”