The Ogun State House of Assembly has approved a request by Governor Dapo Abiodun to access a N250 billion bond.
The bond, it was learned, will be used in stimulating and growing the state’s economy in the next three years.
The reporters gathered that Gov Abiodun, in a letter in May 2020, sought the approval of the Assembly to access the credit facility.
The letter was read on Wednesday at the plenary.
Upon the receipt of the request, the Speaker, Olakunle Oluomo, said the Assembly had engaged relevant government agencies with an assurance on the desirability of the facility.
It was gathered that the N250 billion bond is meant to fund the three years Medium-Term Expenditure Framework programme of the State, with a view to growing the State’s economy.
The bond, it was gathered, will be accessed in tranches of N100 billion annually.
During plenary, the passage of a resolution titled: “H.R: No. 067/OG/2020 – Request for Bond Issuance, Public Offering or Book Building to the tune of Two Hundred and Fifty Billion Naira”, was moved by the Majority Leader, Yusuf Sheriff.
The approval, which was seconded by Jemili Akingbade, was also supported by all the lawmakers through a voice vote at the plenary presided over by the Speaker, Olakunle Oluomo.
The chairman, House Committee on Finance and Appropriation, Olakunle Sobukanla explained that due to the economic challenges occasioned by the COVID-19 pandemic, the state needed to access the financial instrument with a very low-interest rate to further the infrastructural development of the State.
Meanwhile, Speaker added that the approval of the financial intervention would help sustain the state’s economy, following the economic downturn occasioned by the pandemic, which has brought about a drastic reduction in the state’s internally generated revenue as well as funds being received from the Federal allocation account.