Oyo Assembly approves Makinde’s N100b bond

Africa Press-Nigeria:

Oyo Assembly has approved the N100 billion prosperity bond requested by Governor Seyi Makinde since July.

The Assembly described the loan request as an alternative approach of the present administration to finance infrastructural and developmental projects.

Giving the report of the Committee on Public Accounts, Finance and Appropriation on the bond during plenary, the Committee Chairman, Akeem Mustapha, noted the bond was intended to finance priority projects for rapid socio-economic development of the State.

The lawmakers, who had earlier organised a day seminar to gather more knowledge on bond issuance, payment and the imperative for domestic borrowing, listed the Ibadan Dry Port/Rail Corridors, Ibadan Airport Upgrade and Expansion, Construction/Upgrade and Equipping of the hospital across the three Senatorial Districts in the State, Circular Ring-road, Ibadan and the Construction of the Iseyin-Ogbomoso Road (about 50km) as five proposed development projects to be financed with the bond.

Mustapha said: “The bond is to be raised by the Private Company only that the Government gives support to the investors that are to be involved in the Bond issuance.

“During our workshop, there was a consensus opinion that there was nothing wrong in borrowing or bond issuance but what is important is the judicious utilization of the Bonds for the intended purpose. They are projects that have revenue potentials and capable of generating employment opportunities.

“The process towards the actualization of the proposed N100billion Bond commences November/December 2020 as the target issuance date. Hence, all the five identified projects will be captured in the 2021 budget of the State.”

Speaker Adebo Ogundoyin recalled a seminar that was held to highlight the benefits and challenges of bonds as well as bring to fore the rationale behind the Oyo Prosperity bond at this time.

The Speaker noted that the seminar made the lawmakers be better informed on the benefits and challenges of bonds, repayment modes, interest rates, and their expected roles as lawmakers in ensuring that funds accruable from the bond are expended on projects highlighted by the state government.

He reiterated the resolve of the Ninth Oyo Assembly to continue to perform its statutory function of checking the executive arm of Government, curbing executive wastage, and reducing government excesses.

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