The Ogun House of Assembly on Thursday approved Gov. Dapo Abiodun’s request to access a N250 billion loan as a three-year Medium-Term Expenditure Framework (MTEF) programme of the state.
The loan is meant to stimulate and grow the state’s economy.
The assembly’s approval followed a resolution on the subject titled: ”Request for Bond Issuance, Public Offering or Book Building to the tune of N250 billion.”
The Majority Leader, Mr Yusuf Sherif (APC -Ado Odo Ota 1), moved the motion for the approval of the loan and was seconded by Mr Jemili Akingbade (ADC -Imeko Afon).
Sherif said the financial programme was to be carried out in tranches of N100 billion annually through bond issuance, public offering, book building or such other methods as may be approved by regulatory authorities.
He said the house had considered at several executive sessions, the request for N250 billion as three years Medium-Term Expenditure Frame Work (MTEF) programme of the state to stimulate and grow the economy post COVID-19.
“The programme is hereby approved in tranches 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.
“Access to other tranches are subjected to further approval of the house,” he said.
The Chairman, House Committee on Finance and Appropriation, Olakunle Sobukanla (APC -Ikenne), explained that due to the economic challenges posed by COVID-19 pandemic, the state needed financial interventions with little interest rates.
The Speaker, Olakunle Oluomo (APC–Ifo1), said that such intervention was necessary to sustain the state’s economy, following the economic downturn occasioned by the pandemic.
Oluomo stated that there had been drastic reduction in the Internally Generated Revenue (IGR) of the state as well as allocation from the Federation Account, due to the upsurge of the coronavirus pandemic.
The motion was passed through a vioce vote by the whole house.