Oyo governor says 35% of facility has been converted to grant and outlines repayment terms
Oyo State Governor Seyi Makinde has rejected suggestions that the state’s controversial €55 million French concessional financing facility could be used to finance his political ambitions.
Makinde said the facility was secured for development purposes, particularly healthcare, rather than for political activities.
He made the clarification on Friday while addressing workers at the Oyo State Secretariat in Ibadan following his return from annual leave.
Governor explains structure of facility
Makinde said 35 per cent of the €55 million facility had already been converted to a grant, reducing the portion that would ultimately be treated as repayable financing.
He also said the facility carries an interest rate of 0.0006 per cent and is repayable over a period of 20 years.
The governor has maintained that the financing was secured to support the state’s healthcare programme and related development priorities.
Loan became political issue
The facility has attracted political scrutiny amid preparations for the 2027 elections and speculation over Makinde’s political plans.
The governor’s clarification followed warnings from political opponents who had raised concerns over the possible use of state resources for political purposes.
One such warning came from the campaign organisation of Senator Sharafadeen Alli, which called on Makinde not to divert the French facility towards campaign activities.
Makinde rejected the suggestion, saying the purpose and structure of the financing were tied to development in Oyo State.
Focus on healthcare
The governor’s latest explanation places the facility within the state government’s healthcare investment plans.
The conversion of part of the facility into a grant and the reported concessional repayment structure are central to the government’s explanation of why it considers the financing beneficial to the state.
Any assessment of the facility’s financial impact, however, would require examination of the underlying agreement, disbursement arrangements, project expenditure and repayment obligations.