The Ogun Assembly on Tuesday granted approval to Gov. Dapo Abiodun to restructure and refinance over N109. 324 billion loans in the debt stock of the state.
The debt facilities according to the governor’s correspondence dated March 17 was read by the Speaker ,Olakunle Oluomo (APC–Ifo1) during plenary in Abeokuta.
The correspondence included: “Restructured Term Loan (FGN Bond) of N55.405billion obtained in 2015; Salary Bailout to State Government and Local Government of N9.779billion and N9.139billion respectively obtained in 2015 .
Others are: Infrastructural Loan (Excess Crude Account) of N10billion obtained in 2015; Special Socio-economic Development Intervention Loan N20billion obtained in 2017 and Commercial Agriculture Credit Scheme of N5billion obtained in 2017″.
The approval of the restructured term loans followed a motion moved by the Majority Leader, Yusuf Sheriff (APC – Ado Odo Ota 1), the Majority Leader, seconded by Kemi Oduwole (APC -Ijebu Ode) supported by the Whole House through a voice vote.
Contributing to the debate leading to the passage of the motion, members including Sheriff, Messers Ganiyu Oyedeji (APM – Ifo 11) and Solomon Osho (APC -Remo North) explained that the approval of the request became necessary to meet the people’s need.
They noted that the approval was imparative to meet the short fall in the price of crude oil per barrel at the international market, which had impacted negatively on the global economy, thereby resulting in revenue downturn to Governments at all levels in the nation.
Other lawmakers including Oduwole, Adeyemi Ademuyiwa (APC – Abeokuta South II) and the Deputy Speaker, Oludare Kadiri , added that the approval would assist to the tenor of the facilities to enable it embark on more infrastructural programmes.
The letter, as earlier read by the Speaker partly states; “I have extensively considered the sustainability of this program to Ogun State.
“This includes to increase liquidity and cash flows of the state thereby providing fund for the state government for the implementation of socio and economic infrastructural development programs across the state.
“To increase the tenor of the facilities;thereby reducing the monthly debt service and making more fund available for project implementation.
“To take advantage of the drop in the lending rate, this will confer significant savings in the cost of servicing debt,” the governor said.