Oyo State Governor, Seyi Makinde, has defended the controversial ₦63.4 billion earmarked for the renovation of the Government House, attributing the high cost to Nigeria’s volatile exchange rate and broader economic instability.
The figure, which has sparked criticism and debate among citizens and stakeholders, was addressed by the governor during a special session of the State House of Assembly to commemorate its second anniversary.
Governor Makinde explained that the project’s cost is a reflection of the current naira-dollar exchange rate, noting that fluctuations in the currency market have significantly impacted financial planning across the board.
He said, “Our economy is bearing the brunt of a weak naira. When we assumed office, monthly repayment on our foreign debt stood at ₦700 million. Today, we are repaying ₦3 billion monthly.”
He pointed out that a major portion of the state’s foreign debt, currently above ₦300 billion, stems from a $200 million World Bank loan inherited from the previous administration under late Governor Abiola Ajimobi. According to Makinde, the loan was secured when the exchange rate was around ₦350 to a dollar, translating then to roughly ₦70 billion.
“But due to the depreciation of the naira, that same loan now requires far more in repayment terms,” he said.
Makinde speaks further
Lamenting the limited influence of state governments in national monetary policy, Makinde added, “As a sub-national, Oyo State does not influence exchange rate decisions. Yet, we bear the consequences in our fiscal planning.”
Amid the economic constraints, the governor also unveiled plans to bolster state security with the procurement of two aircraft for aerial surveillance.
“These aircraft will not only strengthen our security framework, but also mark the 50th anniversary of Oyo State’s creation from the old Western Region,” he said, describing the initiative as part of a broader strategy to protect lives and property.
During the plenary, Speaker of the Oyo State House of Assembly, Adebo Ogundoyin, commended the cooperation between the executive and legislative branches, saying it has been central to the state’s progress so far.
“Our achievements are the result of strong collaboration and shared purpose,” he said. “The next two years will come with tougher demands, and we must rise to meet them with renewed commitment.”
Ogundoyin also announced the recruitment of 181 new staff into the Assembly, emphasising that the process will be transparent and based strictly on merit.
He reaffirmed the Assembly’s dedication to enacting impactful laws and conducting effective oversight, saying, “We will continue to ensure that the voices of our people remain at the heart of everything we do.”
