The Oyo State House of Assembly has approved a N100 billion loan facility from United Bank for Africa (UBA) Plc to accelerate the completion of ongoing infrastructure projects and fund other critical developmental initiatives across the state.
The approval followed a request by Governor Seyi Makinde in a letter addressed to the Speaker of the House, Adebo Ogundoyin, and read during plenary.
The Assembly also approved a separate N300 billion refinancing arrangement to enable the state government to transfer its existing contractors’ finance facility from Access Bank to UBA, reducing the interest rate from 26 per cent to 22 per cent.
During deliberations, lawmakers said the refinancing arrangement would help reduce the state’s borrowing costs and consolidate its contractors’ finance obligations with one financial institution.
The N100 billion loan carries an interest rate of 22 per cent, subject to review in line with prevailing money market conditions, and a repayment period of 48 months. The terms also include a three-month moratorium on principal and interest repayments, while interest accruing during the period is to be repaid alongside the fourth, fifth and sixth loan repayments, respectively.
Contributing to the debate, the Deputy Speaker, Muhammad Abiodun Fadeyi, alongside Adebayo Babajide Gabriel, Olorunpoto Cephas Rahman and Sunkanmi Babalola, emphasised the importance of sustained infrastructure investment in driving economic growth and improving public services.
The lawmakers cited the LAUTECH Teaching Hospital in Oyo town, the Rashidi Ladoja Circular Road and the Ido-Eruwa Road among ongoing projects whose timely completion would improve connectivity, create employment opportunities and stimulate commercial activities across the state.
They maintained that completing the projects would ensure that investments already made translate into tangible benefits for residents, while improving the movement of people, goods and services across Oyo State.
With the approval, the N100 billion facility is expected to provide additional funding for critical infrastructure projects, while the N300 billion refinancing arrangement is designed to ease the state government’s financing burden through a lower interest rate.
 Plc to accelerate the completion of ongoing infrastructure projects and fund other critical developmental initiatives across the state.){kind=link}