ODSG’s N50b Bond Facility

ONDO State Government recently approached the capital market to secure a fifty billion naira bond as credit facility to finance some ongoing projects across the state. This followed a formal approval the government secured from the State House of Assembly in respect to the loan. The move, being a sensitive economic decision, has generated mixed reactions from the populace. While some hailed the decision saying it would allow the government to complete its various masses oriented projects in record time, others, especially members of the opposition party, described government’s intention as political, saying the loan was meant to rake in money to fund the 2020 governorship election in the state.

JUSTIFYING the need for the facility, the government through the Commissioner for Economic Planning and Budget, Emmanuel Igbasan, listed the projects the loan is meant to fund to include construction of Atijere-Aboto road, Araromi-Lekki road (both in the coastal area of the state), Ore Flyover Bridge, Okeagbe-Afin-Eshe-Ogbagi road and dualisation of Oda road in Akure. Other projects include reticulation of dams, rural electrification and 500 bed space modern facility at the University of Medical Sciences Teaching Hospital (UNIMEDTH) in Akure among others.

IT is instructive to note that some of these projects have taken off and executed to certain levels by the various contactors. This is due to the government policy of paying contractors in tranches based on the levels of work done as against the previous practice of paying mobilization fees before contactors move to sites. This implies that government is already indebted to some contractors handling these projects which necessitate the loan facility to adequately fund both ongoing and new projects.

FOR effective utilization of the bond, The Hope  calls on all stakeholders to monitor the projects bearing in mind that the state resources will be used to service the loan in years to come just as it is currently being done for previous loans taken by previous administrations. Thus, government should put its ministries, departments and agencies in charge of these projects on their toes to ensure that the funds are not diverted and that projects are done according to specifications in the contract deals.

THE House of Assembly which approved the bond should also carry out its oversight functions to ensure that the projects are well executed in line with budgetary provisions. The House should also monitor budget performance and make it a condition for the consideration of subsequent budget proposals by government.

WE also call on government to patronize indigenous contactors in their areas of competence in executing these projects. We believe that if local contractors are involved, it will afford the beneficiary communities an opportunity to properly engage them as the contactors are also beneficiaries as it were, being members of those communities. It will also prevent capital flight and ensure that monies continue to circulate within the state. We also call on the contractors, whether indigenous and outsiders, to engage members of the beneficiary communities as part of their labour for the projects.

THE Hope also enjoins the host communities to cooperate with the contactors on site. To this end, community leaders should prevent their youths from constituting stumbling blocks to the contractors by making unreasonable demands which are not legitimate thereby slowing down the pace of work,. They should rather constitute themselves into informal monitoring teams to ensure that work is done according to specifications and that quality and quantity are not compromised.

APART from project to be funded by this loan, government (both executive and legislature) should ensure that all other projects are monitored and completed at record time in line with the 2019 Budget which the Commissioner for Economic Planning and Budget puts at 54% as at June this year. THE HOPE tasks government not to rest on its oars but to utilize all available funds to implement the budget to its fullest as a way of setting a record of near 100% budget performance in the comity of states in Nigeria. This, we believe, is achievable if all processes towards optimal budget performance are activated by government and the time to do so is now.