Ogun state assembly grants governor abiodun’s request to access N250billion three year credit facility

Ogun State House of Assembly on Thursday granted an approval to the State Government to access N250bn only as three years Medium -Term Expenditure Frame Work ( MTEF) programme of the State to stimulate and grow the State’s economy to be accessed in tranches of N100bn annually.

Penpushing reports that ,the Assembly’s approval followed 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 N250billiob, moved by the Majority Leader, Yusuf Sheriff, seconded by Jemili Akingbade and supported by all the lawmakers through a voice vote at a plenary presided over by Speaker Olakunle Oluomo.

The approval explained that medium term financial programme would be carried out in tranches of N100bn  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 tranches were subject to further approval of the State House of Assembly.

The Chairman, House Committee on Finance and Appropriation, Olakunle Sobukanla earlier 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, Rt Hon  Kunle Oluomo in his remarks  stated that upon receipt of the request, the Assembly had engaged relevant government agencies with an assurance on the desirability of the facility, stressing that 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.