By; BAYO AKAMO, Ibadan.
Oyo State House of Assembly on Tuesday approved the state government’s application to the Federal Government for a N14.16 billion bailout fund.
In his comment at an emergency plenary session of the House of Assembly, the Speaker Honourable Michael Adeyemo declared that the bail out which is to be given by the Federal Government in addition to the monthly allocation would be solely for the payment of workers’ salary.
The Speaker stressed that the approval by the House of Assembly was one of the conditions spelt out by the Federal Government for states facing severe financial difficulties to meet for the new bailout funds.
According to Honourable Adeyemo, of the N14.16b bailout fund, N1.39 billion is expected to be release for the first three months
while N1.11 billion would be paid monthly in the subsequent nine
months.
Honourable Adeyemo pointed out that the N14.16billion bailout fund is to be paid back to the Federal Government by Oyo state with nine per cent accrued over a period of one year, saying, “the repayment will not start until after a year moratorium by which time, hopefully, the state would have become economically viable”.
“Federal Government has restricted states from getting loan facilities from commercial banks partly due to its high interest rates, the Federal Government decided to provide the bailout in form of a loan. The repayment will not start until after a year moratorium by which time, hopefully, the state would have become economically viable.”
Speaking further, Honourable Adeyemo disclosed that Federal Government had given a one year suspension before the commencement of the loan payment.
