Makinde: It is important to note that the World Bank fund is a loan to states, not a grant. So, states will need to repay this loan.
Seyi Makinde, the governor of Oyo, is seeking the approval of the state house of assembly to access a N150 billion loan from the Afrexim and Access financial institutions.
The governor said the loan would be used to accelerate completion of the Rashidi Ladoja circular road, and to reduce traffic gridlock within the Ibadan metropolis.
The request letter was read during the assembly’s first plenary on Tuesday by Debo Ogundoyin, the speaker.
20 out of the state’s 32 lawmakers were in attendance.
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Ogundoyin said it is important to support the government in its drive to improve the state’s road infrastructure, but urged the executive to provide relevant information on the loan to the concerned legislative committees.
“The house needs to be furnished with details of the loan repayment plan and other necessary information that will aid legislative considerations,” he said.
“The chairman of the house committee on works and that of appropriation should deliberate on the implications of the loan, find out the current state of the state’s debt profile and the pay-back mechanism of debts already acquired.
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“How long will the project take, brief on the road, and how many sections of the road will the loan take care of?
“Find out if the road project will add to the state’s internally-generated revenue (IGR), how long the project will take and the benefits of the road construction to the people of the state.”
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