Ogun’s $350 million loan request gets Senate approval

-Senate approves $350 million world bank loan for Ogun state.

-The loan is expected to drive developmental projects in the state which will create more jobs in the state.

Ogun state to benefit $350 million from world bank loan facility after senate approval.

The Nigerian Senate, on Thursday approved 350 million dollars World Bank loan for Ogun State for its Development Policy Operation (DPO).

The sitting was presided over by Deputy Senate President, Ike Ekweremadu, and the report was approved by the lawmakers through a voice vote.

Chairman of the Senate committee on local and foreign debts, Sen. Shehu Sani, while presenting his committee’s report at plenary, stated that the loan facility had an attractive low financing rate, moratorium of five years and a five-year maturity term.

He added that the loan was further captured in the 2016-2018 borrowing plan as approved by the National Assembly and Ogun state had satisfied all conditions necessary for the approval of the loan.

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He said “the facility has already been captured in the 2016-2018 Medium Term Expenditure Framework.”

“It also has low and acceptable loan sustainability level, therefore it is eligible to borrow.”

“The DPO loan will further help to enhance the capacity of the state government.”

“The state has met the various conditions laid by World Bank and as such qualified for the loan.”

“It has also put in place institutional framework for transparent and accountable budgetary and financial purpose.”

“The committee recommends that the Senate should go ahead and approve the loan as contained in the 2016-2018 external borrowing rolling plan of President Muhammadu Buhari,’’ Sani added.