The Oyo State House of Assembly on Thursday approved the request of the State Government to access additional N2bn loan facility from the Fidelity Bank Plc at a concessional interest rate of 12percent per annum in a repayment period of 12months.
This followed a letter from the executive read on the floor of the house, requesting approval of the additional loan.
Speaker of the house, Rt Hon Adebo Ogundoyin gave the nod after the assembly lawmakers unanimously agreed that the state access the additional N2bn loan facility.
According to the letter, The facility is required to provide and finance counterpart fund for Donor Assisted Projects across the State.
Rt Hon Ogundoyin noted that it was imperative and expedient for the Oyo State Government to fulfil its own part of the project agreement so as to ensure speedy completion of the projects.
The letter read in part ” In a bid to further compliment 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 accessed from Fidelity Bank Plc at a concessional interest rate of 12percent per annum with a repayment period of 12months and management fees of 0.25percent one-off. ”
The projects included Nigeria Covid-19 Action Recovery and Economic Stimulus, Accelerating Nutrition Results Project in Nigeria, Ibadan Urban Flood Management Project, Better Education Service Delivery For All and the UBEC/SUBEB 2021 Matching Grant.
In their contributions, the Majority Leader , Hon Sanjo Adedoyin said the purpose for which the loan facility was being sought was laudable and commendable adding that it was inline with the vision of Governor Seyi Makinde led administration to ensure all round development of Oyo State.
Hon Hakeem Adedibu (Iwajowa) urged the House to approve the request to ensure the completion of all the projects as highlighted in the letter.