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Ogun bond issue based on sound financial projections —Gov Daniel

By Kolade Larewaju
ABEOKUTA – AS the crisis rocking Ogun State House of Assembly continued unabated and the House still sealed, Governor Olugbenga Daniel, yesterday, said the decision of his administration to access the bond market was based on sound financial and fiscal projections.

He said the government would not show any desperation in order to access it.
Workers in the Assembly remained locked out as policemen also blocked the hitherto open road in front of the complex.

Speaker Tunji Egbetokun and his group of other 14 legislators, who said they would hold plenary session, yesterday, however, did not turn up as they were said to have gone to Abuja on the invitation of the Presidency.

Governor Daniel who spoke at the formal presentation of the master plan and flag off of the Abeokuta Central Business District, ACBD, at the Valley View Auditorium of the Government House said that in spite of the consent given by the State legislature, the government would adopt a wait and see attitude.

Controversy generated by the bond

While noting the needless controversy the issue of the bond had generated, the governor said it was due mainly to the way the former leadership of the House treated what was essentially a fiscal measure.

The governor told the audience which included the Speaker of the group of 11 legislators,  Soyemi Coker, the Alake of Egbaland, Oba Adedotun Aremu Gbadebo, and some bankers that the inability to access the bond market at the appropriate time cost the government about N400 million monthly.

He said this was the cost of the high interest rate the State was paying on the facility used to finance existing infrastructure such as the multi billion naira new secretariat building and other major developmental projects.

Governor Daniel said that based on sound financial projection he was sure that if his administration did not take the bond, his successor would do so because that was the only way to maintain the pace of development and finance projects and growing expenditure in the state.

Urging the people of the State to brace up for the consequences if the bond was not eventually accessed in the life of his administration, the governor said there was no desperation to access the bond market at all costs.


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