Oyo Assembly approves N2bn loan request for Governor Makinde
The Oyo State Assembly on Thursday approved Governor Seyi Makinde’s request to access an additional N2 billion loan facility from Fidelity Bank Plc.
The loan will carry a concessional interest rate of 12% per annum, with a repayment period of 12 months.
The facility is required to provide matching funds for donor-supported projects statewide.
Following the approval, the speaker, Adebo Ogundoyin, had read a letter from the State Executive Council asking for the green light from lawmakers to access the additional N2 billion loan facility.
Mr. Ogundoyin noted that it has become expedient for the state government to fulfill its own part of the project agreement to ensure their timely completion.
According to the letter, the loan has become imperative in order to further complement the government’s efforts in providing critical and iconic infrastructure and highly commendable projects across the state.
“The Executive Council is seeking approval from the State House of Assembly to access an additional N2 billion loan facility to provide matching funding to carry out donor supported projects.
“The facility is to be made available from Fidelity Bank Plc at a concessional interest rate of 12% per annum, with a repayment period of 12 months and a one-time 0.25% management charge,” it read in part. in the letter.
Projects include: COVID-19 Action Recovery and Economic Stimulus, Accelerating Nutrition Results Project in Nigeria, Ibadan Urban Flood Management Project, Better Education Service Delivery For All and UBEC/SUBEB 2021 Matching Grant.
In his contributions, Majority Leader Sanjo Adedoyin said the purpose for which the loan facility was sought was laudable.
He said it was in line with the vision of the administration headed by Mr. Makinde to ensure the comprehensive development of the state.
Another lawmaker, Hakeem Adedibu, representing Iwajowa Constituency, urged the assembly to approve the request to ensure the completion of all projects, as the letter outlines.