Ondo Assembly Approves Repayment Of 27Billion Bond By Three Years

By Niyi Olutunde, Akure 

The Ondo State House of Assembly has approved three years extension for the repayment of N27billion bond inherited from former Dr. Olusegun Mimiko led administration to increase the rate of cash flow in the state.

The House also arrived at the decision to enable the government to attend to other financial expenses in the state.

Governor Oluwarotimi Akeredolu in a letter sent to the House on Thursday in Akure, however sought its approval to restructure the payment period of the bond.

The House Majority Leader, Mr Olusegun Araoyinbo, said the letter should be given an express approval to make more fund available to cater for relevant items in the recurrent expenditure and commended Akeredolu for the initiative.

He explained that about N775.88million monthly was scheduled to be deducting from the allocation accruing to the state within the period of 2012 and 2019.

According to him, this has actually reduced the financial strength of the state.

The majority leader said that if the House could approve the bond restructuring, “the state will be saving about N400m at the end of every month’’.

According to him, if the loan repayment period is rescheduled to between 2019 and 2022, the monthly repayment will come down to N311.11million.

However, the House, presided over by its Speaker, Mr Bamidele Oleyelogun unanimously approved an additional tenure of three years for the repayment of the bond.

The House agreed that the restructuring of the bond would reduce the state monthly debt services and bring some cash to recurrent expenditure.

Oleyelogun however referred the bill to the House Committee on Finance and Appropriation for proper scrutiny.

Also, a bill to establish “Ondo State Social Protection Park, Social Protection Council and Comprehensive frame work of Ondo State Social Protection’’ and other matters connected therein scale through second reading.