Ogun Assembly okays Abiodun’s N250 billion three-year-credit facility request

The Ogun State House of Assembly yesterday granted approval to the state government to access N250 billion only as three years Medium-Term Expenditure Framework (MTEF) programme of the state.

The Assembly’s approval followed the passage of a resolution 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 by Speaker Olakunle Oluomo.

The House decision was in line with Governor Dapo Abiodun’s request for approval to access the credit facility communicated to the state House of Assembly last month and read yesterday at the plenary.

According to the approval, the medium-term financial programme would be carried out in tranches of N100 billion yearly through any of bond issuance, public offering, book building or other methods as may be approved by regulatory authorities, while access to other tranches would be subject to further approval of the state House of Assembly.

Chairman, House Committee on Finance and Appropriation, Olakunle Sobukanla, said that due to the economic challenges occasioned by COVID-19 pandemic, the state needed to access the financial instrument with very low interest to further the infrastructural development of the state.

Also, Oluomo 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 to sustain the state’s economy.

following the economic downturn caused by the pandemic leading to drastic reduction in the internally-generated revenue as well as fund from the Federal Allocation Account.