The Oyo State House of Assembly, on Thursday, approved of the resolve of the Governor Seyi Makinde led executive arm of government to raise N100 billion bond.
The Assembly hinged its approval on its conviction that the bond is intended by the government to finance priority projects for rapid socio-economic development in the state.
Giving a report on a seminar held on the bond, Chairman, House Committee on Public Accounts, Finance and Appropriation, Honourable Akeem Mustapha said lawmakers accepted that the projects to be taken care of with the bond are those that had huge revenue potentials and ability to create employment opportunities for residents of the state.
The report noted that projects in the bond like the Ibadan Dry Port/Rail Corridors, Ibadan Airport Upgrade and Expansion, Construction/Upgrade and Equipping of the hospital across the three Senatorial Districts in the State, Circular Ring-road, Ibadan and the Construction of the Iseyin-Ogbomoso Road will enhance the socio-economic development of the state.
Mustapha said, “The bond is to be raised by the private company only that the government gives support to the investors that are to be involved in the Bond issuance.
“During our workshop, there was a consensus opinion that there was nothing wrong in borrowing or bond issuance but what is important is the judicious utilization of the Bonds for the intended purpose.
“They are projects that have revenue potentials and capable of generating employment opportunities.
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“The process towards the actualization of the proposed N100billion Bond commences November/December 2020 as the target issuance date. Hence, all the five identified projects will be captured in the 2021 budget of the State.”
In his remarks, Speaker of the Assembly, Honourable Adebo Ogundoyin said what was imperative was judicious spending of the bond.
He said the Assembly was particularly concerned about repayment and interest rate of the bond.
He, however, said the Assembly will set up a committee to monitor the judicious and responsible application of the bond and ensure that the money is paid back in due time.
“We do not want the debt to be carried on to the next generation. We will handle this responsibly by working closely with the stakeholders of the executive arm of government.
“We will not be the first state to acquire bond but we will make sure that ours will be an example of judicious spending and how states can develop infrastructure to boost the economy of their states,” Ogundoyin said.
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