According to reports, the facility is intended to provide additional funding for critical infrastructure projects and other developmental initiatives across Oyo State.
The loan carries an interest rate of 22 per cent, subject to review in line with prevailing market conditions, and a repayment period of 48 months. Its terms also include a three-month moratorium on principal and interest repayments, alongside management and advisory fees.
In a related development, the Assembly also approved a separate ₦300 billion facility to refinance an existing contractors’ finance arrangement obtained from Access Bank.
The refinancing arrangement is expected to reduce the interest rate on the existing facility from 26 per cent to 22 per cent, allowing the state government to consolidate its contractors’ financing obligations under UBA.
During deliberations, lawmakers defended continued investment in infrastructure, citing projects such as the LAUTECH Teaching Hospital in Oyo town, the Rashidi Ladoja Circular Road and the Ido-Eruwa Road.
They argued that completing ongoing projects would improve transportation links, create employment opportunities, stimulate commercial activities and enhance access to public services across the state.
However, the fresh ₦100 billion borrowing also raises questions about repayment obligations and the need to ensure that the funds deliver measurable benefits to residents.
With the Assembly’s approval, the Makinde administration has received legislative backing to proceed with the proposed financing arrangements, with the government expected to channel the new funds towards infrastructure development and the completion of ongoing projects.
Stay connected to NaijaStreetMatters for more Nigerian news, politics and current affairs.
