Economic Growth: Osun Lawmaker Advocates Loan Restructuring For States

A member of Osun House of Assembly, Mr Babatunde Olatunji, has called for the restructuring of States Government loans with the Federal Government until the country’s economy fully recovers.

Olatunji (APC-Ife North) made the call in an interview with newsmen on Thursday in Osogbo.

“In view of the lean federal allocation and the huge impact of federal government monthly loan deductions on the state finances, I will advocate for restructuring of the state government loans with the federal government.

“Such that no state services national debt with more than 15 per cent of its allocation pending when the country’s economy fully recovers”, Olatunji said.

The lawmaker said this would be achievable by reducing interest rate and elongating tenure of existing loans.

According to him, with this sub-national governments can be more liquid, able to pay salaries and meet other statutory obligations.

“This will serve as another form of fiscal stimulus by the federal government to reflate the economy.

“However, our institutions, governance and public management process and structures must be strengthened at all tiers of government so as to ensure value for tax payers’ money,” he said.

Olatunji, who is the House Committee Chairman on Commerce, Cooperatives and Youths Empowerment, said with the early passage of 2018 budget, Nigeria would consolidate on the previous economic growth.