Oyo State House of Assembly, on Thursday, approved Governor Seyi Makinde’s request to access additional N2 billion loan facility from Fidelity Bank Plc.
The loan will be at a concessional interest rate of 12 per cent per annum, with a repayment period of 12 months.
The facility is required to provide counterpart fund for donor-assisted projects across the state.
Sequel to the approval, the speaker, Adebo Ogundoyin, had read a letter from the State Executive Council requesting the lawmakers’ nod to access the additional N2 billion loan facility.
Mr Ogundoyin noted that it had become expedient for the state government to fulfill its own part of the project agreement so as to ensure their speedy completion.
According to the letter, the loan has become imperative in a bid to further complement the government’s efforts on the provision of critical and iconic infrastructure and very laudable projects across the state.
“The Executive Council is seeking the approval of the state House of Assembly to access additional N2 billion loan 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 12 percent per annum, with a repayment period of 12 months and management fees of 0.25 per cent one-off,” the letter read in part.
The projects include: 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 UBEC/SUBEB 2021 Matching Grant.
In his contributions, the Majority Leader, Sanjo Adedoyin, said that the purpose for which the loan facility was being sought was laudable.
He stated that it was in line with the vision of the Mr Makinde’s led administration to ensure all-round development of the state.
Another lawmaker, Hakeem Adedibu, representing Iwajowa constituency, urged the assembly to approve the request to ensure the completion of all the projects, as highlighted in the letter.