Why We Want N107 Billion World Bank Loan – Ogun Govt
explained why it approached the World Bank
to secure a N350 million loan.
The government also dismissed reports that
the House of Representatives Committee on
Loans, Aids/ Debt Management had
disapproved of the loan request.
The state government had on Wednesday
sought the approval of the National Assembly
as part of the requirement for securing the
loan.
The Commissioner for Budget and Planning,
Aderenle Adesina, while shedding light on the
loan said any serious government desirous of
development should take advantage of such
facility which she described as a
concessionary loan offered at two per cent.
Ms. Adesina, accompanied by her
counterparts in the ministries of education,
agriculture, commerce and industries,
explained that the Ogun government had
become an “attractive bride” to international
financial institution including the World Bank,
due to the infrastructural development that it
had undergone in the last six years.
“World Bank considers states that have
demonstrated ability to perform and partners
with such states in development.
Firstly, the loan attracts just two per cent
interest as against the 22 percent obtainable
in the normal financial market,” she stated.
“The loan is also payable over a period of 25
years with a five -year moratorium which
means that we have about 30 years to pay
it. It will be foolhardy for any government to
reject such an attractive offer,” she said.
She further explained that the loan is not like
the conventional loan where the full amount
being sought is disbursed at once, stating that
disbursement would be made in tranches
based on performance.
The commissioner emphasised that the
highest that the present administration in the
state could get is a maximum of 25 per cent.
“This is a loan mainly for the future as the
subsequent administration’s in the state stand
to benefit more as more tranches are
disbursed in the course of time.
“It will therefore be misleading to claim that
the loan is meant just for the present
administration,” she said.
Ms. Adesina explained that if the state is
granted the loan, it would be used to further
boost its transformational programme in the
agricultural, educational and industrial sectors
among others.
Reacting to reports that the House of
Representatives had denied approval for the
loan, she said that was untrue.
“There is a chain in the process. The Federal
Executive Council as well as the Senate have
already approved our request and we had also
approached the House of Representatives for
its approval,” she stated.
“The engagement with the House of
Representative is ongoing and we are still on
course and it will be wrong for anyone to
conclude that the House had rejected our
proposal,” the commissioner said.
Ms. Adesina equally faulted claims that the
Ogun State Government did not need such
loan with a monthly Internally Generated
Revenue of N7 billion.
She said the government under Ibikunle
Amosun should first be commended for raising
the internal revenue.
The commissioner also noted that the present
administration intended to further raise the
figure to N15 billion monthly and it needed to
take advantage of such loans to effect more
infrastructural development to move the state
to an enviable height.
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