OGUN CLEARS AIR ON PURPORTED N200B LOAN Contrary to the insinuation in some quarters, the Ogun State Government today in Abeokuta declared that it has not obtained a N200 billion loan. Commissioner for Finance, Mrs. Kemi Adeosun who made this clarification during a press briefing, explained that it was not possible for any government to obtain such an amount as a loan without going through certain processes, saying that her Ministry had developed a medium term financial model to grow the State’s debt in proportion to the growth of its Internally Generated Revenue. She revealed that out of the N16.6 billion bank loan approved by the State House of Assembly in this year’s budget, the State government had only taken N7b.The Commissioner also recalled that at inception in May 2011, the administration inherited a debt of N87 billion, but this had been reduced to N61.718bn by the end of that year because of the re-engineering efforts of the State Government, affirming that a sustainability analysis conducted on the State’s debts revealed that its debt are within the threshold set at the Federal level. Mrs. Adeosun stated that the State Government had been repaying loans incurred for financing current infrastructural projects and paying off parts of the debts inherited, pointing out that pension arrears and other staff claims stood at N9.32b, having paid N3.86b out of the N13. 18b it was in December 2011. Speaking on revenue monitoring, she stated that her Ministry had introduced the cashless revenue collection policy in all state-owned tertiary institutions which she said had resulted in an average of 195% increase in reported revenue, adding that same had been replicated in the Ministry of Forestry which also resulted to 36% increase in its revenue in the first two months of this year.
Posted on: Fri, 07 Jun 2013 16:47:16 +0000
Trending Topics
Recently Viewed Topics
© 2015