The Ogun State House of Assembly has approved Governor Ibikunle Amosun’s request to obtain 65.7 billion Naira credit facility in line with the 2017 approved State budget to finance capital projects in the State.
The approval followed a motion moved by the Majority Leader, Adeyinka Mafe, seconded by Honourable Rasaq Oduntan and supported by the whole House through a voice vote, shortly after members had debated on the desirability of the credit facility.
It was granted under “House Rule No. 090/2017 – Approval to the State Government to obtain a Credit facility of 65.785 billion Naira from domestic and foreign banks and other financial institutions
While putting forward the governor’s request for approval, the Majority Leader said: ”It is the opinion of this Honourable House, that approval be given to the State Government to access 65.785 billion Naira facility or any part thereof, from any domestic, foreign banks or financial institutions to finance developmental projects in the State”.
Earlier Mr Mafe said governor Amosun’s request was in line with the approved capital receipt contained in the 2017 budget, pointing out that the single digit interest rate would give a great relief for government in the midst of the current economic recession.
The Deputy Speaker, Olakunle Oluomo and Honourable Olusola Bankole, who contributed to the debate leading to the approval of the credit facility, said the lenders of the credit facility would not offer direct cash to government but having dedicated projects meant to be funded by the facility, while the creditors would also determine the consultants that would handle the projects.
They noted that the State House of Assembly would carry out its oversight on all the projects so as to ensure value for money and promote accountability, transparency and prudence in the best interest of the State.
On his part the Minority Leader, Olawale Alausa, while supporting the motion for approval said the Assembly would monitor closely the list of projects to be funded with the facility.