Oyo: ₦300b loan fails 'transparency, accountability, due process' test - Group, wants details published

Oyo: ₦300b loan fails ‘transparency, accountability, due process’ test – Group, wants details published

Khalid ABRAHAM

A non-partisan group, Oyo Ronu Development Forum (ORDF), has faulted the process of the approval of the new ₦300b loan proposed by the Oyo state government.

The proposal to take the loan has been generating furore with the opposition party All Progressives Congress APC especially pointing out the loan is unjustified taking cognisance of past loans taken by the Governor Seyi Makinde – led administration which it said did not reflect in development.

In a communique signed by its Head of Media/Communication, Mr. Olushola Olaniyi, ORDF observed the manner the whole process of granting approval by the Oyo State House of Assembly smacked of brigandage.

While acknowledging the “importance of infrastructural development and the need for financial instruments to drive progress,” it pointed out the process was flawed and purposes of the loan shrouded in secrecy.

The group affirmed its commitment to the development of the state but says it is overly concerned about “the process and circumstances surrounding this loan approval,” adding, “the manner in which this loan was passed raises critical questions about transparency, accountability, and due process.”

It wondered why the process was speedily dispatched with as “an emergency” in the face of the fact the House is on recess and higher disbursements from Federation Accounts Allocation Committee (FAAC).

clicktoregister

“Justification of Emergency: Why was this loan treated as an emergency despite the State recording significant revenue improvements from FAAC allocations?”

This is as it challenged the concealment surrounding the loan and its proposed utilisation, repayment structure, interest rate, and whether every zone of the state would benefit in terms of projects allocations. “What specific projects will this loan fund? What are the repayment terms, interest rates, and geographic spread of the proposed projects across the State’s senatorial districts?” It queried.

ORDF similarly questioned the sustainability of debt piling vis a vis previous loans obtained by the state. “With previous loans taken by the State, what has been their impact? Will this new debt create development or impose a future financial burden on Oyo State?’

Consequently, the group which made interventions as this in the past demanded that the state government should publish “a comprehensive breakdown of the loan, including the purpose, repayment plan, interest rate, and the list of projects with their locations.”

It as well wants assurance of “equitable distribution of projects across all zones of the State, and commitment to full transparency in the management of these funds and open channels for civic monitoring.”

It emphasized “As indigenes of Oyo State, we reserve the right to demand accountability and fairness in governance. We are not opposed to development, but development must be driven by transparency and inclusiveness.

“Oyo State belongs to all of us, and the decisions taken today will shape the future of generations to come.”