The Oyo State House of Assembly approved the state government’s request to access an additional N2 billion loan facility from Fidelity Bank Plc on Thursday. The loan has a 12-month repayment period and a 12-percent annual interest rate.
The facility must develop and finance a counterpart fund for state-wide initiatives receiving donor assistance.
Following the decision, the Speaker, Adebo Ogundoyin, had read a letter from the Executive Council asking the state lawmakers’ permission to use the additional N2 billion credit facility.
Ogundoyin pointed out that in order to ensure that the projects are completed as soon as possible, the state government must fulfill its own obligations under the project agreement.
A portion of the letter reads, “In a bid to further complement the state government’s efforts on the provision of critical and iconic infrastructure and very laudable projects across Oyo State, the Executive Council is seeking the approval of the State House of Assembly to access additional N2bn facility to provide counterpart funding to complete donor assisted projects.
The facility is to be accessible through Fidelity Bank Plc at a discounted interest rate of 12 percent annually with a 12-month repayment period and 0.25 percent one-time administration costs.
The initiatives include the UBEC/SUBEB 2021 Matching Grant, the UBEC/SUBEB 2021 Action Recovery and Economic Stimulus, the Ibadan Urban Flood Management Project, and the Nigeria Covid-19 Action Recovery and Economic Stimulus.
In his remarks, the Majority Leader, Hon. Sanjo Adedoyin, praised the goal for which the credit facility was requested and noted that it was in keeping with the administration of Governor Seyi Makinde’s objective for ensuring Oyo State’s overall growth.
To ensure the completion of all the projects mentioned in the letter, Hon. Hakeem Adedibu (Iwajowa) urged the House to approve the request.