Members of the Oyo State House of Assembly have approved an additional loan request of N2 billion for Governor Seyi Makinde of the state.
DAILY POST reports that the loan request was approved by the lawmakers during their emergency sitting on Thursday.
The lawmakers during the plenary unanimously approved Makinde’s request to access an additional N2bn loan facility from the Fidelity Bank Plc at a concessional interest rate of 12 percent per anum and a repayment period of 12 months.
The lawmakers said the facility was required to provide and finance counterpart funds for Donor Assisted Projects across the State.
The Speaker of the House, Adebo Ogundoyin had, sequel to the approval read a letter from the Executive Council requesting the nod of the State lawmakers to access the additional N2bn loan facility.
Ogundoyin noted that it was imperative and expedient for the State Government to fulfil its own part of the project agreement so as to ensure speedy completion of the projects.
The letter read in part “In a bid to further compliment the State Government’s efforts on the provision of critical and iconic infrastructure and very laudable projects across Oyo State, the Executive Council is seeking the approval of the State House of Assembly to access additional N2bn facility to provide counterpart funding to complete donor assisted projects ”
“The facility is to be accessed from Fidelity Bank Plc at a concessional interest rate of 12percent per annum with a repayment period of 12 months and management fees of 0.25percent one-off. ”
Ogundoyin added that the projects included Nigeria 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 the UBEC/SUBEB 2021 Matching Grant.
DAILY POST recalls that the approval of the fresh loan by the lawmakers is coming a few months after the lawmakers had approved a similar loan request.
The state House of Assembly which was inaugurated in June 2019 has approved no fewer than one hundred billion naira loan for the governor.
One of such loans was the one approved in October 2019, four months after the house was inaugurated. The house approved the N7b loan request for the governor.
The lawmakers in August last year approved a loan of six billion naira for the governor.
The state lawmakers also approved another N18b loan facility for the governor in October last year.