The Oyo State Government has dismissed allegations by the All Progressives Congress (APC) that Governor Seyi Makinde’s administration secured a fresh N300 billion loan, describing the claim as reckless and deliberately misleading.
A statement from the government clarified that the Oyo State House of Assembly approved N149 billion strictly for the refinancing of existing loans, explaining that this was designed to replace older and costlier facilities with more favourable terms, thereby reducing the state’s repayment burden.
In addition, the statement said that N151 billion was approved for infrastructure investment and contractor financing. It explained that this arrangement was structured to provide funding for both ongoing and new projects while ensuring that government cash flow remains stable.
“This refinancing is not new borrowing; it is responsible financial management,” the statement said, adding that contractor financing is essential to guarantee the timely delivery of major projects.
The government criticised the APC for what it called a deliberate attempt to distort Oyo State’s financial record. It pointed out that under the party’s eight-year administration, the state grappled with unpaid salaries, abandoned projects, and a paralysed economy. Since 2018, it said, Oyo’s Internally Generated Revenue (IGR) has grown from N20 billion to over N70 billion annually, without imposing new taxes on citizens.
The statement further noted that the current financing plan will support high-impact infrastructure, including Phase 2 of the 110 km Rashidi Ladoja Circular Road, upgrades to the Samuel Ladoke Akintola Airport, and the construction of feeder roads in all zones to stimulate economic growth.
It also countered a claim by an APC lawmaker suggesting a 500 per cent rise in FAAC allocations, clarifying that the actual increase is closer to 75 per cent, which, the government argued, reflected the lawmaker’s poor grasp of basic figures.
