Many Nigerians and civil society groups have described the largesse as a waste of public funds.
The Assembly on Wednesday, November 16, amended the "2007 Pension Rights of the Governor and Deputy Governor Law" to make provision for the project.
The amendment has, however, been condemned by many Nigerians and civil society groups.
Reacting to the issue on Channels TV, Okonoboh said it is a one-time payment.
"Some talked about the amount and I think that was quite moderate because the law says any part of the country. If you want to use 200 million naira in Lagos, it probably might just be a grant to them because they need to add money to build a befitting house in Lagos or wherever," he said.
The Assembly approved houses worth N200 million for ex-governors and N100 million for former deputy governors of the state.