The Oyo State House of Assembly has granted approval to Governor Seyi Makinde’s request to access a N50 billion revolving overdraft for both recurrent and capital expenses within the state,leadership reports.
This approval follows a formal request letter from Governor Makinde, which was presented during the plenary session by the Speaker, Hon. Adebo Ogundoyin.
In his letter, Governor Makinde explained, “This request is in line with the current administration’s commitment to funding recurrent expenses such as salaries, allowances, as well as capital projects and fulfilling contractual obligations.”
He further specified that this financial facility would extend over a period of 45 months at an advantageous interest rate of 25.1 percent per annum, with provisions for periodic reviews to align with prevailing money market conditions.
During the deliberations, the lawmakers recognized the significant projects undertaken by the state government throughout the region. They emphasized that such a financial facility was essential to ensure the state government’s ability to fulfill its financial responsibilities, particularly concerning recurrent and capital expenditures.