On Friday, Oyo State Governor Seyi Makinde cleared the controversy surrounding the approval of N63.4 billion for the reconstruction of the state government house.
In his State of the State Address at the State House of Assembly, Makinde attributed the N63.4 billion approved for overhauling the Government House to the fluctuating exchange rate of the Naira to the Dollar.
The amount, approved by the State Executive Council at the end of its weekly meeting on Wednesday, generated controversy among stakeholders, as they declared that the estimated ₦63.4 billion for the reconstruction work was on the high side.
The state Commissioner for Information, Prince Oyelade, stated in a press release after the meeting that the current state and ambience of the Government House were an embarrassment and an unbefitting facility.
However, the state chairman of the African Action Congress (AAC), Kayode Abayomi, described the sum allocated for reconstruction in a release on Thursday as outrageous and unreasonable.
He further stated that the reasons given were untenable, declaring, “This enormous amount is not just alarming but raises serious concerns.”
He explained that the approved sum, perceived as on the high side for the reconstruction work, would cover the reconstruction of buildings, roads and other ancillary facilities within the Government House and adjoining chalets.
He said: “Yesterday, I trended for the wrong reason, because people said we want to spend ₦63bn to renovate the Government House.
“My answer to them is just to point our attention to one thing, and I want you to listen to me attentively,” Makinde added.
Oyo State foreign debt profile inherited from late Ajimobi
The governor also disclosed the foreign debt profile of Oyo State inherited from his predecessor, the late Senator Abiola Ajimobi, declaring that it had ballooned from N70 billion when he came into office in 2019 to N320 billion.
“Before I came into office, the previous administration took a loan of $200m from the World Bank for the Ibadan Urban Flood Management Project (IUFMP).
As of the time I came in on May 29, 2019, that dollar-denominated loan was in the book of Oyo State as ₦70bn, because a dollar to a Naira was around ₦350.
We were paying about N700 million every month to service the loan. But we finished the IUFMP. Though, before I came in, $100m had been spent and $50m committed.
“This administration was supposed to spend $50m to complete the projects, but we did not spend the amount. We honoured all the commitments made by the previous administration, and returned $18m to the World Bank, which we didn’t spend.
“That was how we have managed the project prudently in Oyo State. But that is not even where I am going.
“My point is, in 2019 in the Oyo State books, N70billion was what Oyo State owed.
“Fast-forward to today, the IUFMP project is completed without adding one inch of drainage. But simply by the exchange rate movement, Oyo State today owes ₦320bn.
“This is because the N70billion calculated as ₦350 to one dollar in 2019 is now the same amount, but it is now calculated at about N1,540 to the dollar. That is our reality.
“We have now moved from paying ₦700m on the IUFMP loan when I came in, to now paying ₦3bn to service that loan monthly now.
“Can we sleep when it is raining? Yes, because the IUFMP has basically tamed the issue of erosion. We have an Advanced Warning System installed in that place.
“But, my point is, to manage our exchange rate is not for me to determine in Oyo State. It is on the exclusive list. But whatever it is, we will do what is in the best interest of our state.
“People can criticise us for whatever it is they want to criticise us on, we will continue to evaluate our position. If we have taken any wrong decision, we will correct ourselves,” Makinde declared,” he said.
State of Security in Oyo
On the state of security in Oyo State, the governor said his administration has concluded plans to procure two aircraft for aerial surveillance and security operations.
“These aircraft will not only support our security architecture, but will also commemorate Oyo State’s 50th anniversary since its creation from the old Western Region,” he stated.
Makinde added that the proposed aircraft acquisition aligned with his administration’s broader strategy to ensure the safety of lives and property across the state.
Earlier in his address, the Speaker of the Oyo State House of Assembly, Rt. Hon. Adebo Ogundoyin, appreciated the governor for prioritising the workers’ welfare and approving the recruitment of 181 new staff for the state legislature, among other developments.
He assured the citizens that the 10th Assembly remained committed to delivering quality legislation, robust oversight and responsive representation with sincerity, diligence, and accountability.
He praised the synergy between the legislature and the executive branch, crediting the rapport to the open-door approach of Governor Makinde.
