The Oyo State House of Assembly has approved the request of the state government to access additional N2billion loan facility from Fidelity Bank Plc at a concessional interest rate of 12 percent per annum and a repayment period of 12months.
The facility is required to provide and finance counterpart fund for donor assisted projects across the state.
The Speaker, Adebo Ogundoyin, had, sequel to the approval, read a letter from the Executive Council requesting the nod of the state lawmakers to access the additional N2bn loan facility.
Ogundoyin noted that it was imperative and expedient for the state government to fulfil its own part of the project agreement, so as to ensure speedy completion of the projects.
The letter reads 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 12 percent per annum with a repayment period of 12months and management fees of 0.25 percent one-off. “
The projects include: 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 in line with the vision of the Governor Seyi Makinde-led administration to ensure all round development of Oyo State.