The Oyo State House of Assembly has approved Governor Seyi Makinde’s request to issue a ₦200 billion Infrastructure Bond aimed at refinancing existing short-term loans used to fund critical infrastructure projects across the state.
The approval followed the consideration of a formal request presented during plenary and read by the Speaker of the House, Adebo Ogundoyin.
According to the governor, the bond will enable the state government to restructure its debt profile by replacing costly short-term borrowing with a more sustainable long-term financing arrangement. The move is expected to support the continuation of key developmental projects while strengthening the state’s fiscal position.
An Executive Council extract accompanying the request revealed that the existing obligations, which include commercial bank loans, contractor-financing arrangements, overdraft facilities, Treasury Single Account advances, and Federal Government intervention facilities, currently attract interest rates ranging between 22 and 26 percent per annum.
The proposed bond, however, is expected to attract a fixed interest rate of between 17 and 19 percent, with a one-off issuance fee not exceeding 2.35 percent.
The state government projects annual savings of between ₦10 billion and ₦14 billion from reduced debt servicing costs. These savings are expected to be redirected towards infrastructure development, education, healthcare, and other critical sectors.
Lawmakers unanimously supported the proposal, describing it as a strategic financial decision that would benefit the state in the long term.
During deliberations, Majority Leader, Sanjo Adedoyin, and Chief Whip, Gbenga Oyekola, commended the administration’s infrastructure drive, citing notable investments in roads, education, healthcare, aviation, and urban renewal.
Projects financed through the existing facilities include the Senator Rashidi Ladoja Circular Road, the Ogbomoso-Iseyin Road, the upgrade of Samuel Ladoke Akintola International Airport, the Light-Up Oyo Project, education infrastructure interventions, the remodelling of the Government House, and the reconstruction of the Ojoo-Akinyele Interchange corridor.
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