The Ogun State Government says the current financial base of the state can accommodate the proposed N1.5 Billion concessionary loan offered by the Central Bank of Nigeria to finance the anchor borrowers’ programme aimed at boosting food security, providing job and ensuring capacity building for participants, especially the farmers.
The Chief Economic adviser to the Governor Mr Dapo Okubadejo, The Accountant General Mr Idowu Micheal and the Permanent Secretary in the Ministry of Agriculture, Mrs Abosede Ogunleye gave the assurance during an interactive session with the members of the House of Assembly with Speaker Olakunle Oluomo presiding.
Fielding questions from lawmakers arising from a letter earlier sent to the house by Governor Dpao Abiodun seeking the approval of house to participate in the CBN credit facility, the officials explained that the Government’s major responsibility upon accessing the credit facility, will be to ensure land clearing as well as the provision of certain infrastructure and capacity.
They added that the State only needed to provide an irrevocable standing payment order which would serve as guarantee for the financial facility payable within Five Years.
They assured that the state would continue to ensure the sustenance of other developmental programmes, positing that the facility was to be serviced with an average monthly deduction of N25 Million from the State’s allocation from the federation account, at a single digit interest rate.
In his remarks, the Chairman of the anchor borrowers programme, Professsor Bola Okuneye, stated that the fund would allow the farmers, being beneficiaries to have extension services, and increased input supplies which include seedlings chemicals and fertilizers, with a view to boosting food production, increased job opportunities, value creation and capacity building programmes for best agricultural practices.
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