Ogun State House of Assembly has approved Governor Dapo Abiodun’s request to restructure and refinance N109 billion loan facilities obtained  by his predecessor, Senator Ibikunle Amosun.

Abiodun  who made the request  in the  letter written to the Assembly and read by the  speaker of the Assembly , Olakunle Oluomo said the loans were obtained between 2015 and 2017.

He said there was a need to refinance the various loans in the debt stock of the State and provide financial relief to the State in managing its available resources and enhance infrastructural development across the State.

According to the Governor ,some  of the loans as contained in the letter dated March 17, are; Restructured Term Loan (FGN Bond) of N55, 405, 175, 055.11 obtained in 2015; Salary Bailout to State Government and Local Government of N9,779,580,234.86 and N9,139,628,430.00 respectively obtained in 2015 

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Others are: Infrastructural Loan (Excess Crude Account) of N10, 000, 000, 000.00 obtained in 2015; Special Socio-economic Development Intervention Loan N20, 000,000,000.00 obtained in 2017 and Commercial Agriculture Credit Scheme of N5,000,000,000.00 obtained in 2017.”

The Majority Leader of the House, Yusuf Sheriff moved the motion for the approval of the loans and seconded by a member representing Ijebu Ode State Constituency, Kemi Oduwole.

Some of the lawmakers who contributed during the debate unanimously agreed that the move would allow the government to meet the short fall in the price of crude oil per barrel at the international market.

The shortfall, according to them, had impacted negatively on the global economy, thereby resulting in revenue downturn to Governments at all levels in the country.

The letter dated March 17 partly states;

“I have extensively considered the sustainability of this program to Ogun State and this includes: To increase liquidity and cash flows of the State; thereby providing fund for the State Government for the implementation of socio and economic infrastructural development programs across the State.

” To increase the tenor of the facilities;thereby reducing the monthly debt service and making more fund available for project implementation. To take advantage of the drop in the lending rate, this will confer significant savings in the cost of servicing debt.”