The Ogun State House of Assembly has approved Governor Ibikunle Amosun’s request to obtain a N65.7 billion credit facility in line with the 2017 approved State Budget to finance capital projects in the state.

This followed a motion for approval of the request moved by the Majority Leader, Hon. Adeyinka Mafe, seconded by Hon. Rasaq Oduntan and supported by the whole House, through a voice vote, shortly after members had debated on the desirability of the credit facility.

The approval, which was granted under “H.R. No. 090/2017 – Approval to the State Government to Obtain a Credit Facility of the sum of Sixty-Five Billion, Seven Hundred and Eighty-Five Million, Six Hundred and Thirty-Three Thousand, Seven Hundred and Seventeen Naira (N65, 785, 633, 717. 00) from Domestic and Foreign Banks and other Financial Institutions -It is the opinion of this Honourable House, that approval be given to the State Government to access sixty-five billion, seven hundred and eighty-five million, six hundred and thirty-three thousand, seven hundred and seventeen naira (N65, 785, 633, 717. 00) facility or any part thereof, from any domestic, foreign banks or financial institutions to finance developmental projects in the State.”

Earlier, while opening debate on the House Resolution, Mafe said 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.

Lawmakers, who contributed to the debate leading to the approval of the credit facility, including the Deputy Speaker, Olakunle Oluomo, and Hon. Olusola Bankole, 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.

They added that the creditors will also determine the consultants that will handle the execution of the projects.

The House, they emphasised, 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.

Minority Leader, Olawale Alausa, while supporting the motion for approval, said the House would monitor closely the list of projects to be funded by the facility.

Update news