The Ogun State House of Assembly has approved the request of Governor Dapo Abiodun, to access a N250 billion loan.
The loan, which was approved, on Thursday, during the plenary session is a three-year Medium Term Expenditure Framework (MTEF) programme, which 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, representing Ado-Odo /Ota 1 State Constituency, moved the motion for the approval and was seconded by the lawmaker representing Imeko-Afon State Constituency, Mr Jemili Akingbade.
The motion was passed through the voice vote of the whole house.
The loan, according to Sherif would be carried out in tranches of N100 billion, on annual basis through bond issuance, public offering, book building or such other methods as may be approved by regulatory authorities.
ALSO READ: Lagos to prosecute fraudulent estate agents
The lawmaker added that the request was granted at different executive sessions, so as 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, representing Ikenne State Constituency, noted that the state needed financial interventions with little interest rates to be able to cope with the economic challenges posed by COVID-19 pandemic.
The Speaker of the House, Hon Olakunle Oluomo, representing Ifo 1 State Constituency, submitted that the financial programme became imperative to boost the economy of the State.
Oluomo explained that there had been a drastic reduction in the Internally Generated Revenue (IGR) of the state as well as allocation from the Federation Account, due to the pandemic.