As a result of the recent global economic challenges resulting from COVID-19 pandemic and the crash in the prices of crude oil, the Ogun State Governor, Prince Dapo Abiodun has announced a number of measures to mitigate the imminent reduction in monthly FAAC allocations from the federation account.
Governor Abiodun made this known while receiving the Interim Report of the State’s Economic Team led by the Honourable Commissioner of Finance and Chief Economic Adviser, Dapo Okubadejo.
Some of the measures include the 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 Government also bans nonessential travel 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, the 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 government is confident that these measures will sufficiently address them.
Indeed, there is no compromise on Dapo Abiodun Administration’s commitment to delivering on its electoral promises as encapsulated in the Building Our Future Together Agenda, regardless of the prevailing economic circumstances, the statement concluded.