Oyo State House of Assembly approves ₦100bn infrastructure loan

The Oyo State House of Assembly has approved a ₦100 billion loan facility from United Bank for Africa (UBA) Plc to fund critical infrastructure projects and developmental initiatives. The approval follows a request from Governor Seyi Makinde to accelerate the completion of ongoing state projects.

As part of the financing arrangement, a separate ₦300 billion facility will be used to refinance an existing contractors’ finance facility currently held with Access Bank. Lawmakers noted that this refinancing will reduce the state's borrowing costs by lowering the interest rate from 26 per cent to 22 per cent, a four-percentage-point reduction.

Legislators defended the decision against critics, characterizing opposition as political mischief. They argued that the move consolidates the state's obligations with a single institution and strengthens the capacity to deliver essential infrastructure while easing the overall financial burden on the government.