Civil Society Organization Raises Concerns Over Alleged Unapproved Foreign Loan by Ondo State Government

Policy Alert, a Civil Society Organization advocating for fiscal and ecological justice in the Niger Delta, has raised an alarm regarding an alleged foreign loan acquired by the Ondo State Government without the approval of the State House of Assembly. The organization claims that a N719.36 million foreign loan was obtained by the state government in the third quarter of 2023.

Key Points:

1. Unapproved Foreign Loan: Policy Alert alleges that there is no record or report indicating that the loan request and subsequent approval were discussed at plenary by the Ondo State House of Assembly. Taking loans without the proper approval is deemed illegal and a violation of the powers of the House of Assembly.
2. Call for Legislative Oversight: The organization calls on the Ondo State House of Assembly to fulfill its oversight responsibility and prevent such negative trends. It emphasizes the importance of adherence to legal procedures in financial matters.
3. Acknowledgment of Positive Budget Prioritization: Despite the concerns raised, Policy Alert commends the Ondo State Government for prioritizing critical sectors in its budget implementation during the third quarter of 2023.
4. Sector Prioritization: The organization highlights that, among the nine Niger Delta States, Ondo State leads in prioritizing key human development sectors such as health, education, water, sanitation, and agriculture.
5. Capital Releases: Specific capital releases mentioned include N779 million for the educational sector, N725 million for the State Universal Basic Education Board (SUBEB), N756 million for health, N96.3 million for water, sanitation, and hygiene (WASH), and N1.45 billion for agriculture.
6. Recommendation for Fiscal Discipline: While commending the government’s spending priorities, Policy Alert urges the Ondo State Government to prioritize capital spending over recurrent budget, emphasizing that a healthy approach to public expenditure management is crucial for societal growth.

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The statement underscores the importance of transparency, adherence to legislative processes, and responsible financial management for effective governance. Policy Alert calls for corrective actions to ensure proper approval processes for financial transactions and a balanced allocation of resources for sustainable development.

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