By Kolade Larewaju
ABEOKUTA â€“ THE Ogun State Government yesterday called the bluff of the State House of Assembly over the Bond issue, saying that it would not only access the bond but would also increase it from N50 billion to N100 billion.
The House through a resolution had directed all financial institutions to stop extending loans and credit to the State Government.
But the State Commissioner for Finance; Mr. Kehinde Sogunle while addressing traditional rulers at the inauguration of the Akarigbo of Remo, Oba Michael Adeniyi Sonariwo as the Chairman of the State Council of Obas yesterday said accessing the Bond market was inevitable for the economic development of the state.
Sogunle spoke just before Governor Olugbenga Daniel also campaigned for the bond, saying that the state government was losing about N400 million monthly to repay loans, adding that with the accessing of the bond, the interest loan repayment would be free and government would have money to do other things, including its power project.
Sogunle had said, â€œdespite the fact that we could not access the bond due to the frustrations of the House of Assembly, we are repackaging it. Our team has repackaged it and we are representing it. But we are not going for the N50 billion but N100 billion. We are going for broke.
â€œThe market is even available for more, the interest rate is low and Lagos has taken about N290 billion from the market. So we want you to support the process of accessing the bond and to educate your subjects and your representatives in the House of Assembly.”