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Ondo Assembly Approves N7bn Loan From Bank

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[caption id="attachment_640" align="alignnone" width="600"]Governor of Ondo State, Dr. Olusegun Mimiko[/caption]

Ondo State House of Assembly has approved the request put forward by Ondo State Governor, Olusegun Mimiko to borrow the sum of N7 billion infrastructural loan from Access Bank Plc for the completion of ongoing infrastructural developments in the state.

The clerk of the house, Bode Adeyelu, had read the governor’s letter on the floor of the house, following which members made contributions in favour of the request.

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.”

Governor Mimiko noted that the approval of the House of Assembly is a prerequisite for the state government to go ahead to process the loan.

Leading the debate, the majority leader, Ifedayo Akinsoyinu, of the PDP explained that the loan would ensure speedy completion of all ongoing projects.

Mr. Musa Mukaila of the APC maintained that a refusal of the request would amount to a denial of democratic dividends for the people of Ondo State.

After taking the unanimous votes in support of the request, the Speaker, Jumoke Akindele 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 assured that the assembly would play its statutory role in ensuring the proper use of the loans.