Oyo Assembly Approves N100bn Facility to Boost Infrastructure Development

The Oyo State House of Assembly has approved a ₦100 billion loan facility for the state government to finance critical infrastructure and speed up the completion of ongoing projects across the state.

Approval for the facility, secured from United Bank for Africa (UBA) Plc, followed a request from Governor Seyi Makinde contained in a letter presented before lawmakers during Wednesday’s plenary.

Under the arrangement, the loan will attract an interest rate of 22 per cent, subject to prevailing money market conditions, with a repayment period of 48 months. A three-month moratorium has also been provided for the repayment of principal and interest.

Lawmakers said the funding would help accelerate projects considered important to the state’s development, including the LAUTECH Teaching Hospital in Oyo, Rashidi Ladoja Circular Road and Ido-Eruwa Road. They noted that completing the projects would improve transportation, access to public services and economic activities.

The Assembly also approved a separate ₦300 billion facility to refinance the state’s existing contractors’ finance loan with Access Bank. The refinancing is expected to reduce the interest rate from 26 per cent to 22 per cent and lower the cost of servicing the existing obligation.