By Adeyinka Adeniran
Governor Seyi Makinde of Oyo state on Friday said fluctuating exchange rate accounts for the N63.4billion approved for the overhauling and reconstruction of the Government House, Agodi, Ibadan.
Makinde who observed that he has been trending on the social media for the wrong reason since the news of the approval hit the airwaves noted that, items required for construction and cost are hugely determined by forces beyond his control.
Noting that, he has shown prudence in managing the state resources since his assumption of office, the governor said he would continue to do whatever is right for the state but would continue to evaluate his position, to be sure no wrong decision was taken, and make necessary corrections, as situation may demand.
Makinde spoke while delivering a State of the State address to celebrate the 2nd year anniversary of the inauguration of the 10th Oyo State House of Assembly at the hallowed chamber.
Corenews reports that, the Commissioner for Information, Prince Dotun Oyelade had on Wednesday dropped the hint of the approval of N63,479,858,000 for the overhauling of the structures of the Government House.
Noting that the approval was given during the State Executive Council meeting, Oyelade had described the current state and ambience of the Government House as an embarrassment and unbefitting facility.
The approval has however generated controversies among the stakeholders, particularly on the aocial media, with many people saying the estimated amount for the project is on the high side.
Addressing the lawmakers and other stakeholders on Friday, Governor Makinde who drew a comparative analysis on the impact of the fluctuating exchange rate explained that the cost of servicing debt inherited from the previous administration has multiplied till date.
He added that the state is currently grappling with a steep increase in its foreign debt repayment obligations to the World bank, which have increased from N70billion to about N320billion, due to exchange rate volatility.
Makinde who traced the root of the debt to a $200 million loan obtained from the World Bank during the administration of his predecessor, disclosed that at the time the loan was secured, the exchange rate stood at N350 to a dollar, bringing its naira equivalent to approximately N70 billion.
He said, “We have been trending for the wrong reasons, where people said we want to spend N63bn to upgrade or renovate the Government House. Well, those people on the social media, they are not from Oyo State. They don’t know what we are talking about. My answers to them is just to cast our attention to one thing and one thing alone.
“Before I came into office, the previous administration took a loan from the World Bank worth $200million USD, for the Ibadan Urban Flood Project. As of the time I came in in May 29, 2019, that dollar denominated loan was in the book of Oyo state as N70billion because dollars to Naira at the time was around N350 to a dollar. And we were paying about N700million every month to service that loan.
“We finished the Ibadan Urban Flood Management Project, its all done. Before I came in, $100million has been spent. $50million USD committed and this administration was supposed to spend $50million USD to compete the project.
“But we didn’t spend that amount. After meeting all the commitments made by the previous administration, we returned $18million USD to the World bank, which we didn’t spend. That is to show how we have managed projects prudently in Oyo state.
“But, that is not where I am going, my point is, in May 29, 2019, in Oyo state books, that loan that we had at N70billion as what Oyo State was owing, now fast forward till today, the project is completed without adding one inch of drainage to the project, just simply by exchange rate movements, Oyo State today is owing N320billion.
“Oyo State is owing N320billion because that N70billion calculated at N350 to a Dollar is now the same about but calculated about N1,540, that is our reality.
“And we have now moved from paying N700million monthly when I came in in 2019 to paying N3billion monthly now, to service that loan. But, can we sleep when it’s raining? Yes. Because Ibadan Urban Flood has basically tamed the likelihood of any flooding, we have an advanced warning system installed already.
“But, my point is, to manage our exchange rate is not for me to determine in Oyo State, it is on the exclusive list. It is the Federal Government that has the responsibility to manage our exchange rate. But, whatever is it, we operate within Nigeria and we will do what is in the best interest of our state.
“We are moving ahead with whatever we have to do, if you see those big figures, people may say whatever and that are we spending dollar here, well we import quite a bit here.
“Even if you want to construct one kilometre of road, we do not make asphalt in Nigeria, they import asphalt even though Nigeria has the second largest bitumen deposit in the world. It didn’t start here, but we have to be forward looking.
“People can criticise us for whatever it is they want to criticise us on, we will continue to evaluate our position, if we have taken any wrong decision, we will correct ourselves.
On the security situation the state, the governor said it’s administration has concluded plans to procure two aircraft for aerial surveillance and security operations, noting that he has gotten the consent of the National Security Adviser on the subject.
He added that, the state will, next year showcase its landmark achievement in celebrating the 50th years anniversary of the state.
He added, “Two days ago I was at the Nigeria Governors Forum meeting where the National Security Adviser briefed the House on their efforts to improve security across the country. And I made a request to him that, we are purchasing two aircrafts, the money is there, sitting in an account right now, we are purchasing two aircrafts for surveillance and we require end user authorisation by the Office of the National Security Adviser, he promised me to write the letter and that I should consider it approved.
“So, before February 3, next year when we will be showcasing Oyo State at 50, I am excited that I am around occupying this position when Oyo State will turn 50. I think some of you should also be excited because we will celebrate our state and all those that have contributed to make the state what it is today.
The governor also seize the opportunity of the address to inform the lawmakers and the stakeholders the various efforts of his administration at impact the state.
In his address, the Speaker of the Oyo State House of Assembly, Rt. Hon. Adebo Ogundoyin said under Governor Seyi Makinde, the Oyo State House of Assembly has witnessed significant welfare improvements for staff within the Assembly and the House Commission.
He said with 32 bills and 106 motions in two years, the 10th Assembly has firmly established itself as a dynamic and people-focused institution.
Ogundoyin said, “In the last two years, this Assembly has remained proactive, people-driven and result-oriented. We have 32 out of 34 Bills, with the remaining two at Committee stage undergoing critical scrutiny. These Bills span essential sectors including education, health, economy, security, environment, infrastructure, social welfare, and governance.
“Furthermore, our House Committees have presented no fewer than 102 Committee reports, setting a record for policy analysis and institutional reforms. We have moved 106 motions and considered 41 Matters of Urgent Public Importance, responding swiftly to the voice of the people while adopting over 400 resolutions, further amplifying our responsiveness to governance challenges.”
The Speaker noted that another standout achievement is the launch of the Post-Legislative Scrutiny (PLS) Unit, a first among State Assemblies in Nigeria.
“Beyond lawmaking, we have taken bold steps to ensure effective governance through legislative innovation. One of our historic achievements is the establishment of the Post-Legislative Scrutiny (PLS) Unit, making Oyo State House of Assembly the pioneer among State Houses of Assembly in Nigeria to institute a mechanism for evaluating the implementation and impact of laws passed by the legislature.
“This groundbreaking initiative underscores our commitment to ensuring that every law enacted truly serves its intended purpose and contributes meaningfully to the development of our State.
“We also recognize that a strong legislature must be an informed one. To this end, we have facilitated capacity-building training at home and abroad for all Honourable Members covering areas such as appropriation oversight, constituency representation, and legislative impact assessment.
“Timely salary payments and regular allowances, 30% CONLESS implementation for legislative staff, Promotions and career advancement opportunities, and Monthly release of operational funds for administrative efficiency.”
The Speaker further added that the state government has approved the recruitment of 181 new staff into the Assembly, adding that the exercise would be strictly merit-based.
He praised the synergy between the legislature and executive branch, crediting Governor Makinde’s open-door approach.
“We have chosen partnership over partisanship, and the dividends are clear in the policies we have helped shape and the laws we’ve enacted. Let me reiterate that our relationship and collaboration remain exemplary, and it is one of the key reasons we have recorded so much progress.”
Rt. Hon. Ogundoyin called on his colleagues to rededicate themselves to the task ahead, saying “We are unwavering in our commitment to delivering quality legislation, robust oversight, and responsive representation. We will continue upholding our constitutional duty with sincerity, diligence, and accountability.
“To my colleagues, I extend my heartfelt gratitude for your support, cooperation, unity of purpose, discipline, decorum, and unparalleled dedication. Let me remind us all that the next two years present even greater challenges, and we must rise to them with a stronger sense of duty and resolve.
“This House belongs to the people of Oyo State. Their hopes and voices shape our debates, and their future drives our resolve.”
