Ondo assembly approves N7b loan from bank

Governor Olusegun Mimiko of Ondo state

Governor Olusegun Mimiko of Ondo state

Ondo State House of Assembly has approved the request of the state government to borrow the sum of N7 billion (N7,000,000,000) infrastructural loan from Access Bank Plc for the complete on going projects.

Governor OlusegunMimiko, in a letter read on the floor of the House on Tuesday by the clerk, Bode Adeyelu, stipulated the use of the loan after he had written earlier to same house sometimes in July 2015 for approval.

The letter read: “In recent time, funds inflow into the coffers of government have reduced considerably. Monthly fixed payouts on current obligations have totally wiped out the inflows, leaving a huge gap even on recurrent expenditure.

Government is even finding it difficult to fulfil its financial obligations on key capital projects. “In order to ensure that the laudable developmental projects/programmes of government are not abandoned, government intends to finance the infrastructural components of government expenditure with a loan facility to facilitate effective service delivery.

Consequently, the state government intends to obtain a N7 Billion credit facility from Access Bank to finance the ongoing capital projects of the state,” it read. Mimiko noted that the approval of the House of Assembly is a prerequisite for the state government to go ahead to process the loan.

Mr. Speaker may wish to note that part of the requirements for borrowing by State as stipulated in the extant laws, regulations and procedure for domestic borrowing is to obtain the State House of Assembly approval.

Therefore, the Honourable House of Assembly is hereby enjoined to lend support to the state government in borrowing the sum of #7 billion as indicated above.” T

he Speaker, JumokeAkindele, stressed the need for the House to support government’s initiative on the loan saying that the essence of the loan is to enable the state government embark on developmental projects in the state.

She affirmed that the loan would provide opportunity for the state government to further consolidate on the numerous life-changing programmes embarked upon by the Caring Heart administration.

Earlier, in a debate, the Majority Leader, IfedayoAkinsoyinu said that there are so many ongoing projects in the state at the moment and posited that by obtaining the loan, there would be no cases of abandoned projects when the present administration would be handing over in 2017.

Also speaking, the member representing Owo constituency II, Hon Ayinde Musa submitted that the masses would derive more benefits if government obtains the loan.



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