Breaking: Gov Abiodun gets approval to borrow N250billion loan after 1yr in office

The Ogun State House of Assembly has approved the request of Governor Dapo Abiodun to access a N250 billion bond. The bond will be used in stimulating and growing the economy of the state in the next three years.

It was learnt that Gov Abiodun has, in a letter in May 2020, sought the approval of the Assembly to access the credit facility. Upon the receipt of the request, the Speaker, Olakunle Oluomo, stated that the Assembly had engaged relevant government agencies with an assurance on the desirability of the facility.

It was gathered that the N250 billion bond is meant to fund the three years Medium-Term Expenditure Frame Work programme of the State, with a view to growing the State’s economy. The bond, it was gathered, will be accessed in tranches of N100billion annually.

During plenary on Thursday, the passage of a resolution titled: “H.R: No. 067/OG/2020 – Request for Bond Issuance, Public Offering or Book Building to the tune of Two Hundred and Fifty Billion Naira”, was moved by the Majority Leader, Yusuf Sheriff.

It was learnt that the approval, which was seconded by Jemili Akingbade was also supported by all the lawmakers through a voice vote at a plenary presided over by Speaker, Olakunle Oluomo.

The 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 infrastructural development of the State.

The Speaker added that the approval of the financial intervention would help sustain the state’s economy, following the economic downturn occasioned by the pandemic, which has brought about a drastic reduction in the state’s internally generated revenue as well as funds being received from the Federal allocation account.