Ogun Assembly on Thursday last week passed a resolution allowing the State government to borrow a sum of N7.5 billion for the construction and rehabilitation of 11 major roads across the three senatorial districts in the state. The N7.5 billion loan which was contained in the Ogun State House Resolutions tagged: “HR 114/2012 on Thursday was earlier tabled before the House by the State Governor, Ibikunle Amosun seeking the Honourable House approval to obtain an internal loan of N7.5 billion from a combination of banks.
Reading the letter of request sent to the House by the Executive Governor, Ibikunle Amosun, Isreal Jolaoso, majority leader said that the State Government made a request for approval to obtain N7.5 billion internal loan from a combination of banks to finance the rehabilitation and construction of 11 major road projects spreading across the 20 local government areas in the state.
Jolaoso disclosed that the loan in question if granted by the House, would be used to finance construction and rehabilitation of road projects across the state and to pay compensations for would-be affected owners demolished structures, saying that the initiative would boost the economic and socio-political activities in the state.
Reacting to the request for the loan, Adijat Adeleye-Oladapo, representing Ifo II State Constituency declared that the request for the loan by the executive was necessary and lawful having provided for in the 2012 Appropriation Law of Ogun State.
She said that the initiative would aid fast, the proposed re-engineering and infrastructural development, saying that a sum of N40 billion loan had already been set aside in 2012 Appropriation Law and the Executive should be allowed to borrow the loan.
According to Adeleye-Oladapo, “I discovered that the loan of N7.5 billion seeking approval for was based on the N40 billion loan provided for in 2012 Budget. It’s already part of 2012 Appropriation Law of Ogun State. We can over-emphasize the fact that the roads in question are economically and politically important to the state”.
Corroborating Adeleye-Oladapo, Remmy Hazzan, representing Odogbolu State Constituency, said that in as much as the N40 billion loan had been provided for in the 2012 Appropriation Law of the state, the State Government should be allowed to borrow the loan.
After much debate and support by the members of the Whole House, Hon. Surajudeen Adekunbi, the Speaker approved through banging of the legislative hammer, the request of the Executive to proceed to the money market to borrow N7.5 billion to finance the said 11 road projects.
The Speaker approved the request also, through a resolution which reads in part: ” Request for approval to obtain an internal loan of seven billion, five hundred million Naira (N7,500,000,000.00).
“It is the opinion of this Honourable House that the State Government should obtain internal N7.500,000,000.00 from the combination of First Bank of Nigeria Plc, Guaranty Trust Bank Plc, Skye Bank Plc, Sterling Bank Plc and United Bank for Africa Plc for medium term financing of 11 major road projects across the state”.
Similarly, the House of Assembly passed a bill sponsored by Akanbi Bankole, Chairman, Community on Finance and Appropriation and tagged: “A Bill for a Law to Provide for the Establishment of Ogun State Debt Management Office (DMO)” into the law, now awaiting the Governor’s assent.
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