In what is the latest in a series of unending loans, the Oyo State House of Assembly has approved an additional sum of six billion naira credit facility for the Seyi Makinde led administration.
The new credit facility brings the total debt accrued to the state by the current administration to N156 billion within the space of two years.
Recall that the Assembly had earlier approved some loan requests for the Governor to borrow money in some financial institutions.
Only last year, the assembly approved Makinde’s request to borrow N100 billion in two tranches of N50 billion each. Among other things, Wasiu Olatubosun, who was then information commissioner, had explained that the loan would be for the construction of the 50 kilometre Iseyin-Ogbomoso road, the Ibadan Circular Ring-Road and Ibadan Airport upgrade. The fund will also cover the development of Ibadan Dry Port and rail corridor which he said would serve as economic hub of the state.
Early this year, the Assembly had approved a N2 billion loan request by Makinde administration.
In May 2020, the Assembly after approving a N2.5 billion CBN credit support for health, also approved Makinde’s request to access N20 billion contractor-financing loan facility from the First Bank of Nigeria Limited.m
In July 2019, less than two months after Makinde got into office, the Assembly had approved his N10 billion loan request ‘to improve infrastructure in the state’.
In October 2019, Makinde’s request of N7.6 billion agricultural loan from the Central Bank of Nigeria, CBN, was also approved.
The approval of the additional N6 billion loan is sequel to a letter sent to the lawmakers by the Governor.
In the letter, the Governor said the loan would be deployed to the execution of projects in the state.
He added that the money would be used to fund existing projects in the state.
“The Governor-in-council met and approved that an additional 5billion naira loan facility and the balance of 1billion naira window both of the First Bank Nigeria Ltd. be made available to the Oyo State government.
“The total sum will be used to finance the existing projects in the State.”
But, Speaker of the house, Adebo Ogundoyin in his reaction, said that the Assembly will continue to monitor the spending and expenses of the Executive Council.
Ogundoyin who spoke during the plenary on Tuesday added that the lawmakers would ensure the loans being approved are judiciously used.
He said, “Our economy cannot develop if we do not have enough funds to develop necessary infrastructures, and we have the assurances of the Executive Council that the burden of the loan will not be bored by the next administration as all efforts will be made to pay them back in short terms.
“In view of the importance attached to the loan request, I implore us to support the efforts of Governor Seyi Makinde towards developing the State
