Reps pick holes in Ogun’s $350m loan request

Members of the House of Representatives committee on debt management have faulted a $350 million World Bank loan proposal by the Ogun State Government.

The lawmakers during a meeting for the loan approval, with officials of the state government yesterday in Abuja said it appeared there was no justification for the loan.

A member of the panel, Musa Sarkin Adar (APC, Sokoto) wondered why the state would go for a foreign loan, when it has all it takes to generate funds for its projects.

“I’m a bit worried about why states like Lagos, Ogun and Rivers will go and look for foreign loan. If states like mine, Sokoto, Ekiti, Gombe and Cross River would go to look for such loan, it’s understandable. I lived in Lagos for 16 years, and I know what Ogun State has. It’s shameful for states like yours to go looking for such loan,” he said.

On his part, Dennis Agbo (PDP, Enugu) said the presentation by the commissioner for budget and planning, Mrs Adenrele Adesina was “shabby” because it did not state the projects for which the loan was meant.

Responding, Mrs Adesina said engagement with the World Bank had reached certain stage, but state was yet to compile details of expenditure for the expected loan.

Chairman of the committee, Adeyinka Ajayi (APC, Osun) ruled that the state government should provide details of the loan and how the funds would be disbursed.