The Oyo State House of Assembly has given its approval for Governor Seyi Makinde’s request to access a N10 billion loan facility to provide counterpart funding for World Bank-assisted projects and the UBEC-SUBEB matching grant.
This approval was granted on Tuesday, May 21, following a letter of request sent to the lawmakers by the governor, News About Nigeria reports.
According to the letter, which was read by the Speaker, Hon. Adebo Ogundoyin, the state counterpart funding is required to facilitate the release of donor funds to Oyo State.
He said the World Bank-assisted projects are aimed at complementing the state government’s efforts to improve the welfare of citizens.
During deliberations, some lawmakers expressed concerns about the current state of the economy, which has made life difficult for citizens.
They appealed to Governor Makinde to prioritise projects and programmes that would enhance the living standards of the people.
The loan facility, which is to be secured from Fidelity Bank, is repayable over 30 months.
This is not the first time Governor Makinde has sought loan approval from the state assembly.
In January, he sought approval to access a loan of N150 billion from Afrexim and Access financial institutions to accelerate the completion of the ongoing Rashidi Ladoja circular road and reduce traffic gridlock within the Ibadan metropolis.
The request was considered by 20 lawmakers out of the expected 32 at the Assembly’s first plenary in 2024.
“The Chairman of House Committee on Works and that of Appropriation should deliberate on the implications of the loan, find out the current state of the state’s debt profile and the pay-back mechanism of debts already acquired.
“How long will the project take, brief on the road, and how many sections of the road will the loan take care of?
“Find out if the road project will add to the state’s internally-generated revenue (IGR) and how long the project will take and the benefits of the road construction to the people of the state,” the speaker directed.
