By Isaac Olufemi Ojo
IBADAN — The Oyo State House of Assembly has given legislative backing to Governor Seyi Makinde’s administration to access a N100 billion loan facility from the United Bank for Africa (UBA) Plc, alongside a massive N300 billion refinancing arrangement aimed at cutting borrowing costs and accelerating statewide infrastructure delivery.
The approvals followed a formal request by the governor, which was conveyed in a letter addressed to the Speaker of the House, Rt. Hon. Adebo Ogundoyin, and read before the lawmakers during plenary.
According to the details presented, the N300 billion component is strategically designed to take over the state’s existing contractors’ finance facility previously secured from Access Bank at an interest rate of 26 per cent.
Under the new arrangement, UBA will refinance the facility at 22 per cent—delivering a crucial four-percentage-point interest rate reduction that significantly lightens the state’s financial burden.
Meanwhile, the separate N100 billion facility will inject fresh funds into critical infrastructural initiatives across the state.
Carrying a 22 per cent interest rate subject to money market reviews, the facility has a 48-month tenor, a 0.25 per cent annual management fee, a 0.5 per cent annual advisory fee, and a three-month moratorium covering both principal and interest repayments.
During rigorous deliberations on the floor of the House, lawmakers threw their weight behind the funding strategy.
Deputy Speaker Hon. Muhammad Abiodun Fadeyi, alongside members including Hon. Adebayo Babajide Gabriel (Ibadan North II), Hon. Olorunpoto Cephas Rahman (Oyo East/Oyo West), and Hon. Sunkanmi Babalola, emphasized that sustained capital investments remain vital to cementing the administration’s developmental legacies.
The assemblymen pointed to high-impact legacy projects—such as the LAUTECH Teaching Hospital in Oyo town, the Rashidi Ladoja Circular Road, and the Ido-Eruwa Road—as critical arteries whose prompt completion will stimulate commercial activities, generate employment, improve regional connectivity, and translate previous capital outlays into immediate dividends for residents.
With the legislative seal of approval secured, the state government is poised to consolidate its financial obligations under UBA while fast-tracking the delivery of ongoing projects across the pacesetter state.
