A faction of Ogun State House of Assembly has approved the request of the State Governor, Senator Ibikunle Amosun to participate in the N2 billion Central Bank of Nigeria’s Micro, Small and Medium Scale Enterprises Development Fund meant to develop SMEs in the country.

The approval followed a motion moved by House Committee on Finance and Appropriation, Hon. Olusola Akanbi Bankole and seconded by Hon. Bowale Solaja after the Committee had held an interactive session with the State Commissioner for Finance, Kemi Adeosun and her Commerce and Industry counterpart, Bimbo Ashiru on the issue.

Meanwhile, 13 out of the 26 members of the State legislators kicked against the passage of the resolution.

Addressing a press conference at the Assembly complex, the G-13 described the passage of the resolution as “unlawful” and “disorderly”, “illegal” and “unconstitutional,” thereby urging the CBN not to release the fund to the state government based on the purported resolution.

Speaking on behalf of the group, the former deputy speaker of the House, Remmy Hazzan, representing Odogbolu State Constituency, alleged that the interface meeting between the House and relevant ministries and agencies over the issue ended inconclusive before members proceeded for the plenary.

The group said it was its expectation that the matter would have been opened for debate on the floor before the passage of the resolution, pointing out that the Speaker, Suraj Adekunbi called for a motion for the passage of the resolution.

Hazzan explained that the passage of the resolution did not follow due process, arguing that the matter concerned falls under the provisions of the Financial Instrument Law of Ogun State 2012 passed into law on 12th October 2012 and assented by the Governor on 19th October, 2012.

The G-13 noted that some of the answers provided during the interface meeting was unconvincing, contending that some structures needed to be put in place before the Assembly could approve the request.

The group maintained that the financial and money related issues must be passed by two-third majority of the House, saying the action of the leadership of the House was completely ultra vires.

It said “that at the interface, various questions were asked and answers proffered. However, some of the answers were unconvincing, hence the request by we members of the G-13 that some structures be first put in place before the OGHA concurrence can be got.

“That some members feel that the answers were enough to grant the house approval. Members, however, resolved to proceed to the floor of the OGHA to lend their various voices based on their conviction.

That, we the undersigned are not against the said loan that will benefit small and medium scale enterprises in the state but we are convinced that so far, the appropriate due process has not been followed.

In a swift reaction, the Chairman, House Committee on Finance and Appropriation, Olusola Bankole, said the position of the G-13 was unfounded.

He argued that the provision of the financial instrument law cited by the G-13 was not applicable to the issue, pointing out that the law applies only to cases relating to loan request by the state government.

He said, “in this case, we are not getting any loan. This is just a developmental fund and it is not going to be given to the state.