The Oyo State House of Assembly has approved another N2 billion credit facility for Governor Seyi Makinde. The loan was approved during the Wednesday plenary in Ibadan, the state capital. This comes after the governor forwarded a letter to the House requesting for the approval of the lawmakers to access the loan.
The Fidelity Bank PLC will offer the loan at a concessionary interest rate of 20.5% per annum and it is repayable for a period of 36 months. The governor promised to repay the loan from the internally generated revenue account of the state domiciled with Fidelity Bank PLC.
Lawmakers who were present at the plenary unanimously approved the request of the governor to access the loan, stating that the development of critical infrastructure is essential for the socioeconomic growth of any society. They added that since the loan is meant for the development of infrastructure, they had no choice but to support the governor.
It is worth noting that in April this year, the lawmakers had approved Governor Makinde’s request to borrow N50 billion. In July 2019, the Assembly endorsed the request by the governor to take a N10 billion infrastructure loan.
Similarly, in October 2019, the lawmakers approved the request of the governor to access a N7 billion Central Bank of Nigeria (CBN) loan to boost farm settlements in Akufo in Ido Local Government Area and Eruwa in Ibarapa East Local Government Area of the state. In August 2021, the lawmakers also approved another N6 billion credit facility for the governor. And in October 2021, they approved the request of the governor to access the N18.7 billion Federal Government Bridge Loan facility. This latest approval of N2 billion credit facility makes it the third loan request approved by the state’s lawmakers in six months.
The lawmakers believe that access to more funds by the government is necessary for the development and transformation of the state. They argued that the loan facilities would enable the government to finance its infrastructural drive, generate more employment opportunities, stimulate the state’s economy and enhance its competitiveness in the region.
