Oyo Assembly approves Gov Makinde’s N100bn bond — Nigerian Pilot News
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Oyo Assembly approves Gov Makinde’s N100bn bond



Oyo State Assembly yesterday approved the N100billion prosperity bond requested by Governor Seyi Makinde since July.


The Assembly described the loan request as an alternative approach of the state government to finance infrastructural and developmental projects.


Giving the report of the Committee on Public Accounts, Finance and Appropriation on the bond during plenary, chairman of the committee, Akeem Mustapha, noted the bond was intended to finance priority projects for rapid socio-economic development of the state.


The lawmakers listed the Ibadan Dry Port/Rail Corridors, Ibadan Airport upgrade and expansion, construction/upgrade and equipping of hospitals across the three senatorial districts of the state, circular ring-road in Ibadan, and the construction of the Iseyin-Ogbomoso Road (about 50km) as the five proposed development projects to be financed with the bond.

“The bond is to be raised by the private company only that the government gives support to the investors that are to be involved in the Bond issuance.


“During our workshop, there was a consensus opinion that there was nothing wrong in borrowing or bond issuance but what is important is the judicious utilization of the Bonds for the intended purpose. They are projects that have revenue potentials and capable of generating employment opportunities.


“The process towards the actualization of the proposed N100billion Bond commences November/December 2020 as the target issuance date. Hence, all the five identified projects will be captured in the 2021 budget of the state,” Mustapha said.


Recalling a seminar that was held to highlight the benefits and challenges of bonds, as well as bring to fore the rationale behind the Oyo Prosperity Bond at this time, Speaker Adebo Ogundoyin, noted that the seminar made the lawmakers to be better informed on the benefits and challenges of bonds, repayment modes, interest rates and their expected roles as lawmakers in ensuring that funds accruable from the bond were expended on projects highlighted by the state government.


He reiterated the resolve of the Assembly to continue to perform its statutory function of checking the executive arm of government, curbing executive wastage, and reducing government excesses.


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