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Why we are taking loans to develop key infrastructure – Makinde gives reason
Oyo State Governor, Engineer Seyi Makinde, on Wednesday, explained that his administration’s determination to fix the huge infrastructure deficit in the state and get the state on the right track for economic growth was behind the move to secure loans that target key infrastructure.
He added that the problem with loans is not in taking them, but in the way they are utilised, noting that with the extant economic reality in the state, it would be difficult for the state to get out of its infrastructure crisis and be well-placed to attract investments, without taking loans targeted at developing key infrastructure.
A statement by the Chief Press Secretary to the governor, Mr. Taiwo Adisa, indicated that the governor stated these during the signing of the reviewed 2020 Budget from N213 Billion to N174 Billion into law.
The governor explained that in the revised 2020 budget, N65.2 Billion has been earmarked for capital projects while N108.9 Billion is for recurrent expenditure, stating that the state plans to pay a huge chunk of its recurrent expenditure through allocations from the federation account and the state’s internally generated revenue.
The governor appreciated members of the Oyo State House of Assembly for reviewing the revised budget proposal in a timely manner and for approving the downward review, saying “it is heartening that the three arms of government have continued to work harmoniously for the good of the people of Oyo State.”
The budget signing ceremony, which took place at the Government House, Agodi, Ibadan, was witnessed by the Deputy Governor, Engr. Rauf Olaniyan; Speaker of the Oyo State House of Assembly, other top government functionaries and some lawmakers.
Speaking shortly after signing the reviewed budget, Governor Makinde maintained that the reason for the review was due to economic meltdown, crash in oil prices and effect of the COVID-19 pandemic, which affected the economy of the state.
The governor reiterated his administration’s commitment to ensure an optimum performance of the budget, noting that the state will ensure that the 2020 revised budget is adequately funded by aiming at 70 per cent performance.
He said: “The reason for this latest revision is apparent to all. The economic meltdown we are experiencing, occasioned by the crash in oil prices, coupled with the COVID-19 pandemic, has greatly affected our state’s ability to stick with the original budget.
“So, after the review, which we submitted to the Oyo State House of Assembly, it was agreed that we should effect an 18.3 per cent downward review of the budget, from N213 Billion to N174 Billion.
“It is this revised budget that I am signing today. As I sign this revised budget, it is a good time to reflect on one issue that has plagued our budget implementation over the years – the issue of poor budget performance.
“We make robust presentations of plans that mostly end on paper, because the funds are not available to implement them.
“When you have an annual budget performance of about 30 per cent, you will understand why we keep having stagnation in economic growth. Or how else will you explain an IGR average of about N1.8 billion in the past four years?”
Governor Makinde maintained that the reason Oyo State continued to be referred to as a civil service state is because it failed, over the years, to take the needed action to boost its economy, stating that his administration is ready to make daring and ambitious efforts to reposition the state economically.
“So, we have taken some steps to ensure that the 2020 revised budget is adequately funded. As I said at the signing of the initial budget, we are aiming for a minimum of 70 per cent performance,” Governor Makinde said, adding that the steps taken by the government is to ensure that loans taken are used to fund priority capital projects.
He said: “One of the steps we have taken is to ensure that loans taken are used to fund priority capital projects.
“Another thing we are doing is using an Alternative Project Funding Approach to carry out key priority projects. This will be used for the twenty-one-kilometres Airport – Ajia – New Ife Express Road with a spur to Amuloko in Ibadan and few other projects.
“What the alternative approach entails is that the contractor will fund the project and the Oyo State Government will pay for the project over thirty months. “I have seen some comments about the cost of the Airport Road. There is no basis for the comparison between the Airport Road and the Moniya-Iseyin road. Unlike the Moniya-Iseyin road, the Airport road will contain hydraulic structures.”
The governor also used the occasion to clear the air on the planned Oyo State Prosperity Bond, noting that though the government is aware that floating the bond is an ambitious move, it is a bold step that has to be taken for the development of the state.
“Let me use this opportunity to talk about the N100 Billion bond, also known as the Oyo Prosperity Bond, which was recently proposed and approved by the Oyo State Executive Council. There is no arguing that floating this bond is an ambitious move. But I want to believe that we were voted into office to take bold steps in developing our economy.
“The facts before us are clear. Our state has huge infrastructural deficits. If those deficits are not addressed, it means we will be maintaining the status quo. Any person with sound financial knowledge will tell you that the only way to get out of this cycle of poverty is through massive investment in infrastructure.
“As I have always said, the problem with loans is not in taking them, but in the way loans are utilised. Oyo State cannot get out of its infrastructural deficit without taking loans targeted at developing key infrastructure. “For example, we are targeting economically strategic roads such as the fifty-kilometres Iseyin-Ogbomoso road and the Ibadan Circular Road. We are also giving attention to the health sector by either constructing or upgrading one public hospital in each of the three senatorial districts of the state. In the transport sector, we are focused on building the Ibadan Dry Port and rail corridor and upgrading the Ibadan Airport.
“Oyo State cannot attract investments into our economy without showing that we are worthy of these investments. Investors will go to Lagos and even our neighbouring Ogun State if we continue running our economy with the same level of unseriousness that the state has come to be known for.
“Tell me, what excuse do we have for not making it into the list of top ten economies in Nigeria? How can we, despite being in these dire conditions, not recognize the urgency of growing our economy?
“I took an oath to lift Oyo State from poverty to prosperity using our Roadmap to Accelerated Development of Oyo State 2019-2023. I am determined to keep my word. Every step we have taken as an administration since our being sworn in on May 29, 2019, till date is geared towards ensuring that every promise made will translate to promises kept. I pledge to continue carrying you along as we make the best decisions for the overall good of the people of Oyo State.”
The Ogun State Police Command has arrested a man, Johnson Elleh, for allegedly producing and circulating a viral video falsely claiming the presence of kidnapping and banditry activities along the Owode-Idiroko axis of the state.
The command said preliminary findings showed that the suspect deliberately fabricated and shared the misleading content to attract public attention and generate online engagement.
The state Police Public Relations Officer, Oluseyi Babaseyi, disclosed this in a statement issued on Thursday and made available to journalists in Abeokuta.
According to Babaseyi, the command immediately launched an investigation after the video surfaced online, subjecting its contents to scrutiny to verify the claims.
He said the findings revealed that the video was false, misleading, and intentionally crafted to trigger fear, panic, and anxiety among residents.
“Findings revealed that the video was false, misleading, and deliberately designed to create fear, panic, and anxiety among members of the public,” the statement read.
The police spokesperson stated that extensive verification further confirmed that no incident of kidnapping or banditry occurred in the Owode-Idiroko corridor or surrounding communities as portrayed in the viral clip.
He added that detectives later identified the suspect after discovering that he featured in the video, leading to his arrest.
“Further investigation revealed that the suspect was featured in the video and was subsequently identified by detectives, leading to his arrest,” Babaseyi stated.
He explained that the suspect’s action was capable of causing unnecessary public tension, disrupting social order, and eroding confidence in the state’s security system.
“During the course of the investigation, the suspect reportedly confessed to intentionally creating and disseminating the misleading content to generate online engagement and public reaction,” he added.
While noting that investigation into the matter was ongoing, the command said Elleh would be charged to court at the conclusion of the probe.
The police command strongly condemned the spread of fake news, false security alerts, and other forms of misinformation capable of creating fear and confusion among law-abiding citizens.
It warned individuals and groups against publishing, recirculating, or disseminating unverified security-related information, stressing that such acts threaten public peace and would attract legal consequences.
“The Command will continue to identify, arrest, investigate, and prosecute all persons found culpable, irrespective of status or motive,” the statement added.
The police, however, reassured residents that Ogun remained safe, peaceful, and secure, urging them to remain calm and rely only on verified information released through official channels.
“The Command remains steadfast in its commitment to protecting lives and property and maintaining public order across the state,” Babaseyi concluded.
The lawmaker representing Ibarapa East/Ido Federal Constituency in the House of Representatives, Engr. Aderemi Oseni, has mourned the death of a chieftain of the All Progressives Congress (APC) in Oyo State and former member of the Oyo State House of Assembly, Hon. Akeem Abimbola Oladipupo, popularly known as Able, describing his demise as a painful loss to the progressive family.
Oladipupo, who represented Ibadan North-West Constituency in the Oyo State House of Assembly, was widely regarded as a grassroots politician and committed party loyalist until his passing.
Oseni, who is also the Chairman, House Committee on Federal Roads Maintenance Agency and the APC candidate for Oyo South Senatorial District, said the late politician’s death had created a vacuum within the party and among those who benefitted from his unwavering commitment to public service.
In a condolence statement issued on Monday by his Media Aide, Idowu Ayodele, and made available to journalists in Ibadan, the Oyo State capital, the federal lawmaker described the late Oladipupo as a dependable progressive, humble political actor and loyal party stalwart whose impact would remain indelible.
He said the deceased dedicated his life to serving humanity, strengthening the progressive movement and supporting the aspirations of many at the grassroots.
Oseni said, “The death of Hon. Akeem Abimbola Oladipupo (Able) came to me as a rude shock. Oyo State and the progressive family have indeed lost a committed, loyal and selfless leader whose passion for service, humility and dedication to the people stood him out.
“He was not just a politician but a bridge-builder, a dependable ally and a grassroots mobiliser who believed strongly in the ideals of our great party. His contributions to the growth of the APC in Oyo State and his service to humanity will remain unforgettable.”
The APC senatorial candidate noted that the late former lawmaker remained steadfast in promoting peace, unity and political development, adding that his simplicity and accessibility endeared him to many across political divides.
According to Oseni, the late politician’s legacy of service and sacrifice would continue to inspire younger politicians and party faithful.
He, however, urged members of the APC, associates and family members of the deceased to take solace in the remarkable life he lived and the positive impact he made during his lifetime.
Oseni also prayed for the repose of the deceased’s soul and for God to grant his family the fortitude to bear the painful loss.
State governors have proposed a new national minimum wage of N100,000 for Nigerian workers as part of efforts to cushion them from the biting effects of inflation and the rising cost of living.
Governor AbdulRahman AbdulRazaq of Kwara State, who is also the Chairman of the Nigeria Governors’ Forum (NGF), disclosed the proposal on Saturday in a post by the state government’s official Facebook page. He said the move aims to improve workers’ welfare while ensuring that government finances remain sustainable.
“State governments recognise the urgent need to improve workers’ welfare in response to the current economic realities facing Nigerians,” AbdulRazaq said.
“We are actively engaging with the Federal Government and organised labour to arrive at a wage structure that is fair to workers and sustainable for government finances.”
The NGF chairman explained that ongoing discussions are focused on balancing the need to boost workers’ purchasing power with the capacity of governments to deliver essential public services and development projects.
“The goal is to improve the living conditions of workers while ensuring that states can continue to meet their obligations and sustain projects that directly impact citizens,” he added.
The proposed N100,000 minimum wage is expected to intensify national debates on salaries, inflation, and broader economic reforms as Nigerians continue to contend with rising food prices, transportation costs, and other living expenses.
Currently, Nigeria’s statutory minimum wage stands at N70,000 per month. Some states, including Lagos, Rivers, and Imo, are already paying above the national benchmark to support workers amid the country’s economic challenges.
Meanwhile, the Nigeria Labour Congress (NLC) has continued to call for a comprehensive review of salaries, insisting that workers deserve a living wage that reflects present-day economic realities rather than merely guaranteeing survival.
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