The Oyo state chapter of the All Progressive Congress ( APC) has described the decision by the state governor, Engr. Seyi Makinde to borrow another N100billion loan as the most insensitive step at this stage ,when the state is grabbling with about N40billion debt.
According to the APC , governor Makinde is naive to borrow another N100billion loan when there is nothing to show for the N39.5billion loan he already borrowed.
The opposition faulted the People’s Democratic Party ( PDP ) led government over its penchant for failing to fulfill electoral promises with utmost disregard to the feelings of the masses.
In statement made available to journalists in Ibadan on Wednesday , by the APC Publicity Secretary, Dr. Abdul Azeez Olatunde , the opposition party expressed surprise that governor Makinde who promised to take Oyo state finances away from relying on federal allocation within 6-12 months of assumption of office has developed uncontrolled appetite for loans.
” This is the Governor who bragged in his inauguration Address of exporting Maize to Botswana to attract foreign exchange to boost Oyo State Internally Generated Revenue (IGR) and infact a lot of Campaign Lies to get peoples votes.
“This is the Governor that was shouting on the Roof Top of meeting Debt from his predecessor,in the early hours of assumption of Governance, thinking that his own Government would not add to the Debt profile of Oyo State at all,”
Dr. Olatunde said.While explaining that there was nothing bad in borrowing in the business of governance , in as much there are commensurate projects that will fund the debts, the APC Publicity Secretary faulted the move to take another loan , when the people are yet to see anything tangible to point to for the already accrued N39.5billion debts.
The statement reads in part ” Oyo State Government’s decision seeking to finance projects in the magnitude of the Ibadan Circular Road by directly seeking for loan is laughable, misleading and undoubtedly shows signs of no foresight.” Interestingly, there was a contractor in place as at 29th of May 2019,when Governor Makinde took over. The Company, ENL Consortium has committed about #7b to the Ibadan Circular Road Project. Why revoking the contract which is based on Public Private Partnership(PPP) Model, and the Government attempting to seek for loans to finance the same project? ”
Retrospectively, the Governor who demonstrated his naivety in business of Governance on an occasion of one of his visitations to the sites last year, ordered the contractor, ENL Consortium to “stop work”.
It was when he was schooled that a “Government does not have power to stop work on a project it’s not financing, that the he had a rethink”.World over, Public Private Partnerships(PPP)is the order of the day, especially for projects which can’t be funded by Government 100%. It was in that wisdom,that the Abiola Ajimobi’s Government adopted the model of Public Private Partnerships in ensuring that the Ibadan Circular Road Project got commitment in funding as deserves. ”
The project is to be operated on “Build-Operate-Transfer”(BOT)Model where ENL Consortium will source for the funds, toll it upon completion and transfer it to the Government having realised their invested fund without interference.It’s this same model that was used for the Lekki-Epe Road and other projects of such magnitudes in Lagos and other enlighten States and abroad. ” Aside the Ibadan Circular Road Project,the Oyo State Government is seeking to commit part of the Bond to financing the Ibadan Airport.
This is quite laughable and another insensitive move. If Oyo State Government is really committed to the upgrading of the Alakia Airport, lobbying of the Federal Government through FAAN should be the best approach.The Federal Government recently through the Minister of Works, H. E, Mr Babatunde Fashola(SAN) gave a standing order that the State Governments shouldn’t undertake projects under the Federal Government purview,else the State concerned won’t be paid for the projects. ”
One can begin to ask that,is Oyo State Government another Father Christmas, seeking to fund a project it won’t be getting payment for? At a time we are yet to see the value of the N7.6b loan for Akufo and Eruwa farm settlements.
At a time we are yet to see the impact of the N22. 5 billion infrastructure loan,seeking for a Bond to the tune of N100b is the most insensitive step at this stage, committing Oyo State treasury to refunding N100b loan whether in short term and long term is amateurish, especially as it concerns public finance. ”
Finally, if the Government of Engr SEYI MAKINDE eventually cornered the N100billion LOAN.The Government of Engr SEYI MAKINDE would have successfully increase Oyo State Debt Profile by adding N139.5 billion within two years. How much Debt would the Government of Engr SEYI MAKINDE plunge Oyo State to before winding down? Your guess is as good as ours.
“However, the state People’s Democratic Party (PDP) spokesperson, Engr. Akeem Olatunji dismissed the state APC criticism of the proposed N100billion bond, saying that the APC lacked the rudiment of public finance.According to him, the decision to take the bond is to fast track overall development of the state.” They need to go and learn the rudiment of finance . They need to learn the rudiment of economics. As far as we are concerned, it is a proposed bond and it is for the overall development of the state. We have our plan and , honestly we need to toe the line of other developed states who have applied it and it worked. Look at Ogun state, the state has incurred about N400billion ,but here we are talking about N100billion and it is not going to be a burden to the state . So, because we are forward looking, we are trying to be proactive so that by the time this recession is over Oyo state will be in the right pedestal of economic development ” , he stated.
