National Assembly has not denied Ogun loan request – Hon. Oladele

A Federal lawmaker representing Yewa Nortth and Imeko-Afon Federal Constituency of Ogun State, Hon. Kayode Oladele, has said there is no truth in reports that the House of Representatives has denied the request by the Ogun State government for House approval to secure a  $350 million World Bank loan.

Answering reporters’ questions in Abuja over the weekend, the lawmaker dismissed the reports that the House of Representatives Committee on Loans, Aids and Debt Management had disapproved of the request by Ogun State.

Oladele stated that what the House Committee on Loans, Aids and Debt Management had done was to conduct a public hearing on the request and would submit its report to the plenary for consideration when the House resumes from recess, adding that proceedings at such a public hearing should not be construed as the conclusion of the Committee or the House.

Commenting on the benefits of the loan, Oladele, who is the Chairman of the House Committee on Financial Crimes, noted that the House would not discourage any state government that wants to take advantage of the World Bank loan facility, which he described as a concessionary loan offered at two per cent in contrast to higher interest rates obtainable in the regular financial markets that are also vulnerable to changes according to prevailing interest rates.

He said: “The loan by its very nature dictates that only a certain per cent of it can be accessed at a time and it is overall payable over a period of 25 years with a five-year moratorium.”

Oladele also pointed out that the loan is developmental in nature and falls into the category of financial packages which the House of Representatives supports because such facilities fast-track infrastructural development and increase the pace of physical expansion and social advancement as well as serve as a catalyst for the much-needed socio-economic multiplier benefits for States.