EHIME ALEX, Lagos
In the face of the debilitating effects of the COVID-19 pandemic, Ogun State Government said it opted for N250 billion bond request in order to achieve its programmes and targets for 2020 fiscal year.
Hon. Remmy Hazzan, special adviser to the governor on media and public communications, stated this on Monday during a chat with newsmen in Abeokuta.
According to Hazzan, who reiterated the state government’s commitments to delivering dividend of democracy, with the bonds there would be no significant hindrance to achieving the plans and programmes of government, aimed at making life meaningful for the people of the state.
He said, “part of our efforts to cushion the effect of the global pandemic on our economy and to ensure that government’s programmes are not affected was what necessitated the recent N250 billion bond request”.
The Special Adviser, who also justified the reason for the loan request, said, ‘’if we continue to use receipts from the federation account and that [sic] from internally generated revenue chiefly for debt servicing and salary payment, we may not have anything left for our developmental projects, hence the need to opt for the bond”.
“We are not taking the money at once. It would be in three tranches and for every tranche, we would also still get the concurrence of the Ogun State House of Assembly, as touching on specific projects. The interest rate is also quite reasonable, he added.
Hazzan, while assuring the people of the state of its judicious use, noted that a maximum of N100 billion will be accessed yearly and that the bond has been structured into the state’s three years Medium-Term Expenditure Framework (MTEF).
The state’s House of Assembly had June 11 granted approval to the state government to access the N250 billion as three years MTEF programme of the state.
The Assembly’s approval had followed the passage of a resolution moved by the Majority Leader, Yusuf Sheriff, seconded by Jemili Akingbade and supported by all the lawmakers through a voice-vote at a plenary presided by Speaker Olakunle Oluomo.
The approval has it that the medium-term financial programme would be carried out in tranches of N100 billion yearly through any of bond issuance, public offering, book building or other methods as may be approved by regulatory authorities, while access to other tranches would be subject to further approval of the state House of Assembly.