IBADAN — The Oyo State House of Assembly has granted approval to Governor Seyi Makinde’s request to secure a fresh ₦100 billion loan facility from United Bank for Africa (UBA) Plc, alongside the refinancing of an existing ₦300 billion contractors’ facility.
The legislative approval followed deliberations during plenary on Wednesday, October 21, granting the executive arm the legal backing to execute both financial arrangements.
Under the approved terms, the fresh ₦100 billion loan facility will be utilized to accelerate and complete critical ongoing infrastructure projects across the state.
Meanwhile, the ₦300 billion debt refinancing arrangement entails transferring the state government’s existing Contractors’ Finance Facility from Access Bank Plc to UBA Plc. State officials explained that the debt restructuring is designed to secure more favorable financial terms, effectively reducing the state’s interest burden on the facility from 26 percent to 22 percent.
Lawmakers, including Deputy Speaker Hon. Muhammad Abiodun Fadeyi and Hon. Adebayo Babajide Gabriel, noted that sustained capital investments in infrastructure are essential for creating lasting economic legacies and driving long-term state development.
The approval comes despite earlier warnings from political opposition figures, including Senator Sharafadeen Alli, who urged caution against expanding state debt profiles. The legislature emphasized that the refinancing component will restructure existing obligations to save costs rather than increase total net indebtedness, while requiring strict monitoring of the new loan’s deployment.
