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Laide Raheem, Abeokuta
Ogun State House of Assembly has granted an approval to the state government to access N250 billion as three years Medium-Term Expenditure Frame Work (MTEF) programme.
The loan, to stimulate and grow the state’s economy, will be accessed in tranche of N100 billion annually.
The Assembly’s approval, yesterday, followed the passage of a resolution entitled: “H.R: No. 067/OG/2020- Request for Bond Issuance, Public Offering or Book Building to the tune of N250 billion,” moved by the Majority Leader, Yusuf Sheriff, seconded by Jemili Akingbade and supported by the lawmakers through a voice vote at a plenary presided over by Speaker Olakunle Oluomo.
The Assembly’s decision was in line with Governor Dapo Abiodun’s request for approval to access the credit facility communicated to the Assembly last month and read on Wednesday at the plenary.
According to the approval, the medium term financial programme would be carried out in tranche of N100 billion only, annually, through any of bond issuance, public offering, book building or such other methods as may be approved by regulatory authorities, while access to other tranche is subject to further approval of the Assembly.
Earlier, Chairman, House Committee on Finance and Appropriation, Olakunle Sobukanla, explained that due to the economic challenges, occasioned by COVID-19 pandemic, the state needed to access the financial instrument with a very low interest rate to further the infrastructure development of the state.
Speaker Oluomo said upon receipt of the request, the Assembly had engaged relevant government agencies with an assurance on the desirability of the facility.
He said the approval of the financial intervention would help sustain the state’s economy, following the economic downturn caused by the pandemic leading to the drastic reduction in the internally generated revenue as well as fund being received from the federal allocation account.
