N250bn Loan: Arabambi Tasks Gov Abiodun To Utilise It On Capital Projects That Will Generate Returns
By ABIODUN JIMOH, ABEOKUTA
Ogun State chapter, Labour Party (LP) has advised that the recent approval granted to the state government to access N250bn as a 3-year Medium Term Expenditure Frame Work ( MTEF) should be strictly expended on capital projects that will generate returns in various ways.
Chairman of Labour Party, Comrade Abayomi Arabambi gave this candid advise while expressing the party position in a statement made available to newsmen in Abeokuta on Sunday.
Arabambi stressed that by expending the loan on capital projects will boost the revenue from which the wherewithal of paying salaries will be assured including the gradual redemption of the loan as and when due.
He further narrated that the proceeds from the investment in the capital projects that would put the economy on the forward match to grow income for the government would be employed and channels towards the payment of salaries.
He added that it would also be used to clear backlog of over eight years pensions and gratuity to retired senior citizens. Renovates our public schools, construction and completion of all the roads, MTR Hospital at Oke-Imosan.
He said: “We in Ogun State LP note the fresh approval granted to the Ogun State Government led by Prince Dapo Abiodun to access #250bn as a 3-year Medium Term Expenditure Frame Work ( MTEF) with the proviso that it be accessed in a yearly tranche of N100bn for the next three years.
“In the approval, the Ogun State House of Assembly (OGHA) did mention that apart and besides other needs, the emerging economic challenges brought on by Covid-19 make it a very necessary exercise.
“In all considerations there is no doubt that the loan will in no small measure sustain the state’s economy being strongly challenged at the moment by the negative effects of the pandemic as seen in the heavy reduction in the Internally Generated Revenue (IGR) of the state and the statutory allocation from the Federation’s Commonwealth.
It is so much in tandem with the redemption mission of the Dapo Abiodun led government to energise, reposition and redirect Ogun State economy.”
Moreover, he emphasised that the party recognised the very great advantage in this loan of reducing the burden of the negative effects of the heavy and intimidating loan transferred from government of Senator Amosun on the Prince Dapo government.
Noting that this would proffer an escape route for the sitting government to escape the threat of the past loans to strangulate the economy of the state.
“Let us at this juncture take a peep at the debt scenario left behind by the government of Senator Ibikunle Amosun. In spite of the fact that Amosun had access to over N145bn loan apart from the N250bn bailout fund, it failed so maximally to complete most of the projects that were the reasons for the loans.
“All of these unfinished projects are common to all the sectors, including health, education, agriculture, health, roads and bridges, power and infrastructures across the length and breadth of the state. This pending and unfinished culture is evident in even human capital development.
“This one single area of failure of Amosun’s government has for the moment depleted Ogun Federal allocation as claims on this have run into some N2bn with claims on payment running to 95%.
“The state of roads are so deplorable enough for anyone to think that the state has deliberately absolved itself of any responsibility for the maintenance of roads in the state.
“All of the above came to happen under the Amosun government that has access to about N400bn loan far unconnected with the state’s IGR and federal monthly allocations.
“Besides the very many official scams as government policy, the Amosun government cheated a larger percentage of the victims of demolition of houses and structures for road expansion in all the major towns in Ogun State while he even failed so hugely in completing the roads .
“The government will do well to recognise the areas of pressing
