Seye Ojo, Ibadan
Governor Seyi Makinde has said Oyo State cannot get out of the quagmire of huge infrastructural deficit without borrowing to fix commercially viable capital projects in the state.
He made the assertion in his address at the signing of the Revised Budget 2020 to law on Wednesday, in which the 2020 budget was reviewed downward by the House of Assembly by 18.3 per cent, thereby bringing the budget from N213 billion to N174 billion. The revised budget includes N65.2 billion for capital projects, while N108.9 billion is for recurrent expenditure.
Makinde explained: “This is the second time in just about a year that we have had to review the Oyo State Government’s budget downwards. The reason for this latest revision is apparent to all. The economic meltdown we are experiencing occasioned by the crash in oil prices coupled with the COVID-19 pandemic has greatly affected our state’s ability to stick with the original budget.”
Commenting on the recent N100billion bond that has attracted criticisms from the opposition parties, the governor stated: “Let me use this opportunity to talk about the N100 Billion bond, also known as the Oyo Prosperity Bond, which was recently proposed and approved by the Oyo State Executive Council. There is no arguing that floating this bond is an ambitious move. But I want to believe that we were voted into office to take bold steps in developing our economy.
“The facts before us are clear. Our state has huge infrastructural deficits. If those deficits are not addressed, it means we will be maintaining the status quo. Any person with sound financial knowledge will tell you that the only way to get out of this cycle of poverty is through massive investment in infrastructure.
“As I have always said, the problem with loans is not in taking them, but in the way loans are utilised. Oyo State cannot get out of its infrastructural deficit without taking loans targeted at developing key infrastructure. For example, we are targeting economically strategic roads such as the 50-kilometre Iseyin-Ogbomoso road and the Ibadan Circular Road. We are also giving attention to the health sector by either constructing or upgrading one public hospital in each of the three senatorial districts of the state. In the transport sector, we are focused on building the Ibadan Dry Port and rail corridor and upgrading the Ibadan Airport.