Ogun clarifies $350 million World Bank facility
The Ogun State government yesterday explained why it approached the World Bank for a $350 million loan.The Commissioner for Budget and Planning, Mrs. Adenrele Adesina, who spoke at a press conference in Abeokuta, refuted the claims that the House of Representatives Committee on Loans, Aids/ Debt Management declined the request.
State officials had last week sought the approval of the National Assembly in that respect. But she noted that the facility attracts just two per cent interest against the 22 per cent obtained in the local financial sector.
Her words: “Firstly, the loan attracts just two per cent interest rate as against the 22 per cent obtained in the normal financial market.“The facility is also payable over a period of 25 years with a five-year moratorium which means that we have about 30 years to pay it.”
The commissioner, who was accompanied by her Education, Science and Technology as well as Health, Works and Infrastructure, Commerce and Industry and Urban and Physical Planning counterparts, added: “It will be foolhardy for any government to reject such an attractive offer.”
Adesina continued: “There is a chain in the process. The Federal Executive Council and the Senate have already approved our request and we had also approached the House of Representatives for approval.
“The engagement with the House is ongoing and we are still on course and it will be wrong for anyone to conclude that the lower chamber had rejected our proposal.”