N300b loan: Oyo Majority Leader makes more clarification, tasks Gov Makinde on Ogbomoso roads

N300b loan: Oyo Majority Leader makes more clarification, tasks Gov Makinde on Ogbomoso roads

Femi OGUNLANA

The Majority Leader of the Oyo State House of Assembly Hon Sanjo Adedoyin has shed more light on the controversial N300billion loan by the Governor Seyi Makinde – led administration.

Recall a lot of Oyo state citizens had criticized the loan proposal and the manner in which the lawmakers approved it with many complaining loans are being taken unendingly without corresponding developments.

The opposition became more strident after a member of the House Hon Ibrahim Shittu representing Saki West state constituency faulted the loan and the process of approval which he said was not inclusive.

Hon Adedoyin who is representing Ogbomoso South state constituency while speaking with ogbomosoinsightonline.com slammed Hon Shittu saying he is only trying to whip up sentiment, mislead the people and gain cheap popularity.

Adedoyin particularly described Shittu as a runaway lawmaker who often absents himself from House sittings and so has little grasp of the rules and happenings in the House.

The two – term lawmaker who commended Governor Seyi Makinde for his developmental strides stressed the request for the loan had to be passed because the purpose, tenor and interest rates were clearly stated and especially because of the need to prevent projects being abandoned by the administration due to lack of funds.

He explained only N151b is being taken while the remaining N149b is for buy-back of an existing loan whose terms had become unfavourable.

“We did not break any rules in the approval of the loan,” Adedoyin began. “We received correspondence from the Executive Arm about the loan request. Before this time, we passed the supplementary budget during which time the governor gave us the details of the loan for the completion of some projects.

“They highlighted the purpose, they told us the interest rate and the tenor. It was an emergency sitting when we considered the request for the loan, we were on recess and it was not actually the real reason for the sitting. A correspondence had come that the governor wanted approval for his annual leave. We were on recess and we had no reason to deny the governor.

“It was when we were considering the leave request that we discovered the correspondence on the N300b loan. But I need to state it’s not a fresh loan. In December 2023, they took a loan of ₦150b – ₦100b from Afrexim Bank and ₦50b from UBA. As at then the interest rate was 10.2% and 14% respectively. But based on a new CBN policy regarding upward review of interest rates, the previous negotiations with the banks were affected and so the agreements were terminated.

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“Consequently, the government decided to repay those two loans and access another one from Access Bank, which is ₦151b and another ₦149b for projects refinancing including the ongoing Ibadan Circular road (₦120b), Ido-Eruwa road, Saki-Ogbooro-Eruwa road and some others. So, these projects are to be funded by this new loan. They didn’t want to stop these projects to avoid variations in costs that could arise. And they emphasized they didn’t want any project unfinished or abandoned by the time the present administration would end in 2027. All projects started they want to complete.

“So, we looked at its merit, the interest rate, repayment plan and the tenor. The tenor which is the duration of repayment is 22 months and that falls within the remaining period of the administration. We looked at the pros and cons, whether there was provision for the projects in the budget, which they cited. With that we had no hesitation in passing it because we were satisfied. We had no reason to slow down the pace of work moreover we can all see Oyo state is wearing a new look.”

On the protest by Hon Shittu, he fired, “There are two laws in respect of finance which guide the House – the financial bill and budget. If we want to consider budget the rule stipulates two-third majority of members will form a quorum and we ensured that while considering the supplementary budget 2 months ago.

“On the second one, loans access and so on, the law stipulates one third majority members, any correspondence from the secretary 1/3 members is all what is required. That is what will form the quorum in the House, which is 11 members. That is what the law stipulates – 11 members must be available for any correspondence from the executive.

“And 13 of us sat on it even though we passed message to all. We didn’t make that law, we met it on ground. We must not allow stagnation in the good works being executed by the governor. Yet if not that the projects are contained in the budget, it would have been difficult. But it had been budgeted for in the supplementary budget. The person you said talked, Hon Shittu, it is just unfortunate, it’s opposition taken too far. This person he was not in Nigeria at the time despite the fact that he knew about the sitting. I am the one that gives notification about meetings as House Leader.

“Anyway he is not always around, so, he is just confused, he is seeking validation and relevance. There are four members in the House who are in opposition party, why have the others not come out to speak in same manner? Since we formed quorum those of us in the meeting approved the request, we are averse to becoming stumbling block to government’s drive.

“He is an idle member. We forced him to make the only motion he even made since coming into the House. Conversely, l recorded the highest in the House in my first tenure (2019 – 2023) and so far l have raised 20 now. There are others who have done over ten like Hon Lukman from Igboho. Hon Shittu doesn’t know the purpose and tenor of the loan. His protest is misplaced.”

55 million Euro loan

“No, it is not a loan but grant,” Sanjay as he is fondly called retorted while responding to a question on previous loans taken by the government especially a 55m Euro loan.

“That French loan is like a grant. The condition attached to it is that for the first 15 years the Oyo state government will not make any repayment and it is zero interest. Hon Shittu doesn’t have clear understanding of that too. Then, 80% of that loan would be committed to supply of equipment to our primary healthcare centres across the state – six in Ibadan, two in Ogbomoso, two in Oyo, and so on.

“And the tenor for the loan is 45 years. Moreover if the money is well spent it will be written off. Then the disbursement of the remaining 20% will not necessarily be in liquid it will depend, they will give the condition. The grant is because of the impressive performance of Oyo state in primary health care delivery, it is what piqued the interest of the French government.

“So, for a lawmaker to criticize the involvement of the House is something else, in fact, we had to hasten it when we learned the window period would lapse if we didn’t sit on it within two days. We didn’t want to be a cog in the wheel of progress of the state. Then there is a ₦50b UBA loan, it is for a counterpart funding with the Federal Government.”

Hon Adedoyin justified the resort to loans against increased allocation from the Nigeria’s Federation Account Allocation Committee (FAAC) noting that with the increased allocation came increased spending like increased salaries and costs of projects and so on.

“It is true, allocation has been increased but remember that with it comes increased wage bills and increased spending due to increased costs occasioned by fuel subsidy removal. Oyo state is a civil-servant state, we have one of the largest three workforces in the federation, there are pensioners too and the Federal Government that says it increased allocation is it not also borrowing?”

He praised Governor Makinde saying he employed thousands of people since coming on board, stamped out incessant closure of the state’s university – Ladoke Akintola University of Technology LAUTECH, is not owing salaries or pensions and connected the major zones of the state through crucial road constructions. “He constructed Ogbomoso to Iseyin road which now takes about 40 minutes instead of 4 hours before; he did Oyo to Iseyin; Ibadan to Iseyin; all the major zones are now connected,” he said.

Nonetheless he stressed the need to extend infrastructural developments to other zones of the state especially his Ogbomoso. “The governor has made great efforts in Ibadan particularly, let him take development to other zones that is what we have been urging him on. He has promised to re-construct Ogbomoso internal roads before the end of this year. We implore him to expedite action on this. Ogbomoso is yearning for infrastructural development too,” he submitted.