The Oyo State House of Assembly has approved the state government’s application for N14.16 billion loan facility from the Federal Government’s N510 billion guaranteed loan. The Assembly had on Tuesday 28 June, 2016 held an emergency plenary to consider the request as contained in a letter sent by the state governor, Senator Abiola Ajimobi.
The resolution of the Assembly on the loan was part of the conditions set by the Federal Ministry of Finance in granting the loan facility to states. The N14.16billion loan facility which was spread across 12 months would see the state get N1.39 billion monthly for the first three months and N1.11 billion for the following nine months.
Oyo State would begin repayment of the loan from year 2018 as the Federal Government has granted a one year moratorium to states.
The letter, in part read, “In view of the current fiscal situation of the state and acting on the advice of the National Executive Council (NEC) to all state governments and governors, the Oyo State government is to apply for funds from the budget support facility from the Federal Ministry of Finance in the sum of N14.16 billion. The facility will be made available in three tranches of N1.39 billion for the first three months followed by N1.11 billion for another nine months.”
While stamping the Assembly’s approval of the government’s request, Speaker, Oyo House of Assembly, Honourable Michael Adeyemo, advocated for more inward-looking to boost the state’s Internally Generated Revenue (IGR).
Adeyemo, who said that the loan would be devoted to the payment of salaries, urged the labour movement to consider the move of the state government as a genuine act of goodwill towards ending the current impasse between the labour movement and the state government.
In their contributions, members were unanimous in noting the need for the state to shore up its IGR to reduce reliance on bailouts and allocations of the Federal Government.
Honourable Fatai Adesina, Ibadan South East II constituency, argued that the National Executive Council should also look at other ways to address the continued fiscal challenge facing states, and the country, in general.
CULLED FROM: tribuneonlineng.com