By Henry Odeh
The Oyo State Deputy Governor, Engr Rauf Olaniyan, has said that the state government’s decision to finance critical infrastructural projects through the N100 billion bond was in order.
Speaking with newsmen on Saturday at his Jericho Residence in Ibadan, Olaniyan explained that such borrowing would shore up the meagre monthly federal allocation and the affected internally generated revenue internally (IGR) which accrue to the state.
The state government had faced series of criticism mainly from members of the opposition parties over the proposed N100 billion bond to finance some projects.
Critics had queried why the state government was proposing another N100 billion bond after it had taken about N39 billion loan to make N139 billion within two years.
Olaniyan explained that the monthly federal allocation and IGR were not enough for the state to embark on developmental projects, hence, the urgent need to explore alternative source of project financing.
He said that funds accruing to the state’s purse was decreasing daily due to the corona virus pandemic adding that the situation necessitated the need to borrow to execute developmental projects.
The deputy governor faulted the comparing of the loan taken by the immediate past administration and what the present administration has taken since inception.
Olaniyan said that the immediate past administration needed not to borrow at all, considering the several funds accrued to it, such Paris club, excess crude oil and some over-payment refunded to it.
He said that those funds accrued to the immediate past administration were responsible for the projects executed, “which are not available now’’.
“The last last administration does not need to borrow money then, because there was enough money. They have the Paris club, excess crude oil and some overpayment refund made to Oyo state government.
“There is nothing like that now. The people of Oyo state have elected us, they should give us the chance; we will not betray them. They should give us the support to deliver,’’ Olaniyan said.