Oyo State Governor ‘Seyi Makinde has addressed the significant N63.4 billion allocated for the renovation of the Government House, attributing the cost to the volatility of the naira against the dollar.
The announcement has sparked discussions among stakeholders, many of whom believe the figure is excessive.
The governor gave the explanation yesterday, during a special plenary session of the State House of Assembly where he delivered his State of the State address, marking the assembly’s second anniversary.
Governor Makinde emphasised that the fluctuating exchange rates heavily influenced the project’s financial framework.
He highlighted the dramatic increase in the state’s foreign debt, which has surged from ₦70 billion to over ₦300 billion, exacerbated by exchange rate instability.
Makinde traced the origins of the debt to a $200 million loan from the World Bank secured by the late Governor Abiola Ajimobi’s administration.
He noted that when the loan was taken, the exchange rate was ₦350 to a dollar, translating to approximately ₦70 billion, saying that “today, due to the naira’s depreciation, the repayment value has skyrocketed.”
“When we assumed office, our monthly repayment stood at ₦700 million. But as of now, we are compelled to pay ₦3 billion monthly.”
The governor expressed concern over the state’s limited ability to navigate the economic challenges.
“As a sub-national, Oyo State has absolutely no influence on exchange rate decisions. Yet, we bear the consequences in our fiscal planning,” Makinde lamented.
In light of these financial pressures, the governor also announced plans to enhance state security and infrastructure, revealing that the government will procure two aircraft for aerial surveillance and security operations.
“These aircraft will not only support our security architecture but will also commemorate Oyo State’s 50th anniversary since its creation from the old Western Region,” he stated, adding that the acquisition aligned with his administration’s broader strategy to ensure the safety of lives and property across the state.
In his remarks, Speaker of the Assembly Adebo Ogundoyin acknowledged the collaborative efforts between the executive and legislative arms, emphasising that synergy in governance has been pivotal to their achievements.
He expressed gratitude for the support and cooperation among lawmakers, highlighting the importance of unity in advancing the state’s agenda.
“The next two years present even greater challenges, and we must rise to them with a stronger sense of duty and resolve,” he said.
Ogundoyin also announced the recruitment of 181 new staff for the Oyo State House of Assembly, which will be merit-based to ensure transparency and fairness.
He reiterated the assembly’s commitment to delivering quality legislation and robust oversight, reinforcing that the voices of the people of the state will continue to guide their work.