Abuja - The Kogi State Government is set to increase the state's debt through the purchase of 109 vehicles for traditional leaders, members of the House of Assembly and Commissioners, with a total cost estimated to reach about $12 million.
According to a Naij report, the funds will be supplied through a loan admitted by Zenith Bank, with an interest rate of 8% to be paid over the next 3 years.
The contract, which was signed by State Finance Minister Asiru Idris, has made provision for the purchase of 55 Toyota Prado Jeeps, 29 Camrys, 11 Corollas and 14 Land Cruisers, all of which will be purchased brand new.
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Investigations into the figures have shown that the estimate of $12 million may have been inflated by 40%, leaving a surplus of $3 million to be spent without specification, The Nigerian Voice reports.
In addition, the Kogi Government has agreed to pay the amount back in dollars, thereby violating rules set by the Central Bank of Nigeria (CBN) and translating to an increase in taxes and levies on Kogi residents, many of which are impoverished at the current time.
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