Ogun clears air on $350m World Bank facility

The Ogun State Government on Monday cleared the air on issues surrounding the $350 million loan request from the World Bank, saying that the House Committee on Loans/Aids/Debt Management did not reject its proposal to get the foreign loan.

It said that the loan is being sought for to further boost its transformational programme in the areas of agriculture, education and industry.

Read also: $350 million loan, additional burden on Ogun ―Isiaka

This disclosure was made at a joint press conference addressed by the state Commissioner for Budget and Planning, Mrs. Adenrele Adesina and her counterparts in ministries of Education, Science and Technology, Mrs. Modupe Mujota Dr. Babatunde Ipaye (Health), Mr. Olamilekan Adegbite (Works and Infrastructure) that the representatives of the Ogun government had last Wednesday sought the approval of the National Assembly as part of the requirement for granting of the loan.

Adesina said the loan would attract 2 per cent interest as against 22 per cent obtainable in the financial market and that the State had become an “attractive bride” to financial institutions based on developmental projects embarked on by government in the last six years.

“World Bank considers states that have demonstrated ability to perform and partners with such states in development.”

“Firstly, the loan attracts just two per cent interest as against the 22 percent ‎obtainable in the normal financial market.”

“The loan is also payable over a period of 25 years with a five-year moratorium which means that we have about 30 years to pay it.”

“‎it will be foolhardy for any government to reject such an attractive offer.”

“This is a loan mainly for the future as the subsequent administrations in the state stand to benefit more as more tranches are disbursed in the course of time.”

“It will therefore be misleading to claim that the loan is meant just for the present administration.”