Following the global economic challenges resulting from the COVID-19 pandemic and the crash in the prices of crude oil, the Ogun state Governor, Dapo Abiodun has announced a number of measures to mitigate the imminent reduction in monthly federal allocation to the state.
Gov. Abiodun according to a statement from the governor’s office made this known while receiving the interim report of the state’s economic team led by the Commissioner for Finance, Dapo Okubadejo.
Some of the measures include budget review in line with current realities, restructuring and refinancing of existing loan obligations and processing of new credit facilities to improve the state’s cash flow and take advantage of the more favourable interest rate regime in the country.
The state government also banned non-essential travels by all civil servants and political appointees.
Other initiatives include creatively shoring up internally generated revenue, eliminating leakages and aggressive cost reduction, especially recurrent cost.
Also recommended are enhancing accountability and transparency, and strengthening the government delivery unit to ensure efficient and effective delivery of projects and policies.
Furthermore, government would prioritise capital spending on critical sectors such as agriculture, healthcare, infrastructure, and other projects that will enhance the living standards of the citizenry.
“Having anticipated the enormity of the economic challenges the prevailing circumstances portend, the state government is confident that these measures will sufficiently address them.
“Indeed, there is no compromise on Dapo Abiodun administration’s commitment to deliver on its electoral promises as encapsulated in the building our future together agenda, regardless of the prevailing economic circumstances,” the statement concluded.
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