Ogun State House of Assembly has approved Governor Dapo Abiodun’s request to access N250 billion credit facility.
The facility to be accessed in tranches of N100bn annually would be part of a three-year Medium-Term Expenditure Framework (MTEF) programme of the state, which is meant to stimulate and grow the state’s economy.
Daily Trust reports that the approval at plenary on Thursday followed the passage of a motion 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.”
The motion which was moved by the Majority Leader, Yusuf Sheriff, was seconded by Jemili Akingbade.
According to the approval, the MTEF programme would be carried out through any of bond issuance, public offering, book building, or such other methods as may be approved by regulatory authorities.
The Speaker, Olakunle Oluomo, who presided over the sitting, hinted that access to other tranches is subject to further approval of the House of Assembly.
Oluomo stated that upon receipt of the request, the Assembly had engaged relevant government agencies with an assurance on the desirability of the facility.
The Speaker maintained that the approval of the financial intervention would help sustain the state’s economy, following the economic downturn caused by the coronavirus pandemic.
Earlier, 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 facility “with a very low-interest rate to further the infrastructural development of the state.”
Source: Daily Trust