Governor Ibikunle Amosun of Ogun is seeking the approval of the House of Assembly to access N65.7 billion loan facility from domestic and foreign banks for some developmental projects.
Mr. Amosun made this known in a letter he sent to the State’s House of Assembly and read by the Speaker, Suraj Adekunbi, at the plenary on Tuesday.
The letter dated January 23 read: “Request for global approval to access N65.7 billion facility from domestic and foreign banks and other financial institutions.
“Kindly refer to Ogun State 2017 approved estimate wherein a sum of N65.7 billion was budgeted as capital receipt.
“The state government wishes to take advantage of the windows available at domestic and foreign multilateral and other financial institutions to finance the developmental projects in 2017 approved budget.
“The developmental projects will be financed to the tune of the said amount at single digit interest rate per annum and a favourable tenure of not less than 10 years.”
According to the speaker, the governor explained that the State Executive Council by its resolution on January 23 has approved that the said amount or any part thereof may be accessed from Central Bank of Nigeria, CBN.
Other banks to access the fund from include Sovereign Wealth Fund Nigeria, Bank of Agriculture, Bank of Industry and Nigeria Development Bank, NDB.
“The amount may also be accessed from foreign banks which include World Bank, African Development Bank, Agence Francaise de Development Bank, African Finance Corporation, AFC, and China Exim Bank.
“The resolution of the State House of Assembly approving that the state government should access the N65.7 billion facility or any part thereof from any domestic, foreign banks or financial institutions is hereby prayed for.
“It may become necessary to seek the approval of the House for a supplementary estimate to the 2017 Appropriation Act.
“This is in view of our expanding initiatives for development and the opportunities that abound in the domestic and foreign financial institutions to access fund at competitive rates,” the governor said in his letter.
The house, however, adjourned deliberations on the issue.