Governor Seyi Makinde’s request to borrow a hundred billion naira bod has been granted by the Oyo State House of Assembly. Makinde said the bond is aimed at financing priority projects for rapid socio-economic development of the State.
It was gathered that Makinde had communicated the decision to borrow the money to the Assembly a few months ago before it was read and granted at the plenary on Thursday, October 15.
According to the Chairman, Assembly Committee on Finance and Appropriation, Hon. Akeem Mustapha, the state needed to get the financial instrument with a very low-interest rate to further actualize the infrastructural development of the state due to the economic challenges. Mustapha explained that the bond was intended by the government to finance priority projects in the state for rapid socio-economic development.
He said the most important thing about the bond is its judicious utilization for the intended purpose adding that the projects which the money will be channelled into have revenue potentials and capable of generating employment opportunities.
Mustapha noted that all the five identified projects will be captured in the 2021 budget of the State and the bond is to be raised by the Private Company while the government gives support to the investors that are to be involved in the Bond issuance.
Speaking on the bond, the Speaker, Debo Ogundoyin, stated that the Assembly had engaged in relevant consultations and held a seminar to highlight the benefits and challenges of bonds with an assurance on the desirability of the facility.
Ogundoyin stressed that the approval of the financial intervention would help sustain the state economy.
