Ogun State government has signed agreements for the execution of three Development Finance Institutions-funded projects in line with Governor Dapo Abiodun’s economic development agenda.
The projects include the Ogun State Economic Transformation Project (OGSTEP), Rural Access and Agricultural Marketing Project (RAAMP) and Value Chain Development Programme (VCDP).
Dapo Okubadejo, the state commissioner for finance and governor’s chief economic adviser, signed the agreements on behalf of the state, while Zainab Ahmed, minister of finance, budget and national planning, signed on behalf of the Federal Government.
Speaking on the significance of the projects, Okubadejo said OGSTEP deal worth $250 million was a World Bank-funded project aimed at increasing the participation of the private sector in the state’s economy with a focus on improving the business-enabling environment, strengthening agrifood value-chains and upgrading skills.
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He noted that the project had commenced in 2017 with the payment of $5 million as Project Preparation Advance (PPA) to support the state government in preparing for the formal application of the project.
“After a very rigorous evaluation and documentation requirements, which intensified from June 2019, OGSTEP was formally approved by the World Bank Board on February 18, 2020. Consequently, the main financing agreement and the subsidiary financing agreement were executed with the Federal Government of Nigeria,” he said.
The Commissioner submitted that OGSTEP would make the state more attractive for private sector investments, thus increasing its internally generated revenue base.
He added that the World Bank would provide much needed financial and technical support towards implementing various economic reforms and initiatives.
On the $45 million Rural Access and Agricultural Marketing Project (RAAMP), Okubadejo disclosed that Ogun State, with three projects, was a prime beneficiary of six projects approved by the World Bank across the country on February 18, 2020.
“RAAMP, which has the mandate of fixing select rural roads and markets across the three senatorial districts of the state, has been running at the preparatory stage with state counterpart fund before the signing of the $44.23 million credit agreement.”
Ogun State and the Federal Government, according to him, signed the subsidiary loan agreement on February 11, 2021, to finance rural roads and develop select markets for enhanced prosperity to local farmers, mainly youths and market women.
