Oyo Assembly Approves ₦100bn Loan for Infrastructure Projects

The Oyo State House of Assembly has approved a ₦100 billion loan facility from United Bank for Africa (UBA) Plc to finance critical infrastructure projects and accelerate the completion of ongoing developments across the state.

The approval followed a request by Governor Seyi Makinde in a letter addressed to the Speaker of the Assembly, Adebo Ogundoyin, which was read during plenary on Wednesday, October 21, 2026.

The lawmakers also approved a separate ₦300 billion financing arrangement to refinance the state government’s existing contractors’ finance facility obtained from Access Bank.

The two facilities, valued at a combined ₦400 billion, have different purposes. While the ₦100 billion loan represents fresh borrowing for infrastructure development, the ₦300 billion arrangement is intended to restructure an existing financial obligation.

Under the refinancing proposal, UBA will take over the existing contractors’ facility at an interest rate of 22 per cent, compared with the 26 per cent charged by Access Bank. The four-percentage-point reduction is expected to lower the state’s borrowing costs.

The new ₦100 billion loan will also attract an interest rate of 22 per cent, subject to review in line with prevailing money market conditions. It has a repayment period of 48 months.

The terms include a management fee of 0.25 per cent per annum and an advisory fee of 0.5 per cent annually, both calculated on the outstanding balance.

The facility also provides for a three-month moratorium on principal and interest repayments. Interest accrued during the period will be repaid alongside the fourth, fifth and sixth instalments.

During deliberations, Deputy Speaker Muhammad Abiodun Fadeyi and other lawmakers emphasised the importance of sustained infrastructure investment in promoting economic growth and improving public services.

They cited projects such as the Ladoke Akintola University of Technology Teaching Hospital in Oyo town, the Rashidi Ladoja Circular Road and the Ido-Eruwa Road as key developments whose completion could improve connectivity and access to essential services.

The lawmakers said completing ongoing projects would help ensure that public funds already committed to infrastructure translated into tangible benefits for residents, while stimulating commercial activities and creating employment opportunities.

With the Assembly’s approval, the Makinde administration has legislative backing to proceed with the proposed financing arrangements, subject to the applicable terms and conditions.

The fresh borrowing will add a new repayment obligation for the state, while the separate refinancing arrangement is expected to reduce the interest rate on its existing contractors’ facility.