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Oyo Assembly approves Makinde’s fresh N50bn loan request for projects

The Oyo State  House of Assembly, on Thursday, approved Governor Seyi Makinde’s request of N50 billion to fund new and ongoing infrastructure projects in the state.

It was gathered that the  N50 billion contract finance facility to provide funding for selected contractors will be sourced from a commercial bank at an interest of between two and four percent spread across 48 months.

Contract Finance, as learnt, is a loan that helps businesses finance the smooth execution of contracts.

The letter of request read at the plenary presided over by the deputy speaker, Hon. Abiodun Fadeyi listed some of the new and ongoing road infrastructure projects, across the state, that will be funded by the loan.

In seeking the Assembly’s approval of the loan, Majority Leader, Hon. Sanjo Adedoyin said the fund will go a long way in enabling the current government to execute contracts for infrastructure development projects.

He added that the fund will also help the state to continue to bridge its infrastructure gap.

Also, in another letter from the executive read at plenary, the Assembly approved the proposed netting of the Oyo state domestic debt from a 60 percent refund following the reconciliation of unauthorized debits from the year 2009 to 2015.

Contributing to this, the Majority Leader, Hon. Sanjo Adedoyin said the request was in order as it will enable the state to align and reconcile some of the debts Oyo state is believed to be owing the Federal Government.

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