The Oyo State Government has approved N100bn private bond tagged the Oyo Prosperity Bond to facilitate the execution of priority projects in a bid to drive the state’s economic development.
This was disclosed in Ibadan by the Commissioner for Information, Culture and Tourism, Dr Wasiu Olatubosun, after the weekly State Executive Council meeting.
The SEC meeting was held virtually in compliance with the COVID-19 protocols.
According to Olatubosun, the fund would be raised in two tranches of N50bn each for the construction of the 50-kilometre Iseyin-Ogbomoso Road, the Ibadan Circular Ring-Road and the upgrade of the Ibadan Airport.
The fund will also cover the development of Ibadan Dry Port and the rail corridor which would serve as economic hubs of the state.
The commissioner stated further that the state would upgrade one government hospital in each of the three senatorial districts of the state.
He added that the 21-kilometre Airport-Ajia-New Ife Express Road, with a spur to Amuloko in Ibadan, would benefit from the alternative project funding approach of the state government.
He said, “Considering the infrastructural needs of Oyo State to enhance its economic potential, the state government has approved the issuance of private bond tagged Oyo Prosperity Bond to facilitate the execution of priority projects with a view to raising N100bn, which is to be raised in two tranches of N50bn each.
“The state government has approved Oyo State Prosperity Bond to allow for quick completion of these iconic priority projects.”
However, the All Progressives Congress in Oyo State decried what it described as Governor Seyi Makinde’s financial recklessness occasioned by administrative naivety.
The party spoke in a statement on Wednesday by its state Publicity Secretary, AbdulAzeez Olatunde.
The party said incessant borrowing would lead the state into financial abyss.
It said, “Here is a governor who promised to take Oyo State’s finances from relying on Federal Government’s monthly allocation within six to 12 months of assumption of office.
“How do we explain seeking N100bn bond when we are yet to see anything tangible to point to for the accrued N39.5bn debts?”