APC tackles Makinde over N100bn bond for priority projects

Oluseye Ojo, Ibadan


The opposition All Progressives Congress (APC) in Oyo State on Wednesday tackled Governor Seyi Makinde on the approval given by the state executive council on Tuesday for private bond meant for execution of priority projects in the state.

Commissioner for Information, Culture and Tourism, Dr. Wasiu Olatubosun, had said the state executive council approved the issuance of a N100billion private bond to facilitate the execution of priority projects such as Ibadan Circular Road, 50-kilometre Iseyin-Ogbomoso Road, Ibadan Airport upgrade, Ibadan Dry Port, one hospital in each of the three senatorial districts, as well as development of rail corridor expected to serve as economic hubs of the state, in order to further drive economic development in the state.

But APC, in as statement made available to journalists in Ibadan by its Publicity Secretary, Dr. AbdulAzeez Olatunde, said the news of the private bond came to the party as a surprise, saying: “The reason behind our surprise was because, here was a Governor who promised to take Oyo State Finances away from relying on Federal Government monthly allocation within 6-12 months of assumption of office.

“This is the governor who bragged in his inauguration address of exporting maize to Botswana to attract foreign exchange to boost Oyo State Internally Generated Revenue (IGR) and infact a lot of campaign lies to get peoples votes. This is the governor that was shouting on the Roof Top of meeting debt from his predecessor, in the early hours of assumption of governance, thinking that his own government would not add to the debt profile of Oyo State at all.

“Forget the semantics. Oyo State is borrowing  N100billion again!!! Honestly, in the business of governance, there’s nothing bad in borrowing in as much there are commensurate projects that will fund  the debts. How do we explain seeking N100billion bond when we are yet to see anything tangible to point to for the already accrued N39.5 billion debts.

“You may ask what is a Bond? A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Oyo State Government’s decision seeking to finance projects in the magnitude of the Ibadan Circular Road by directly seeking for loan is laughable, misleading and undoubtedly shows signs of no foresight. Interestingly, there was a contractor in place as at 29th of May 2019,when Governor Makinde took over. The company, ENL Consortium, has committed about N7billion to the Ibadan Circular Road Project.

“Why revoking the contract which is based on Public Private Partnership(PPP) Model, and the Government attempting to seek for loans to finance the same project? Retrospectively, the governor who demonstrated his naivety in business of governance on an occasion of one of his visitations to the sites last year, ordered the contractor, ENL Consortium to “stop work”. It was when he was schooled that a “Government does not have power to stop work on a project it’s not financing, that the time he had a rethink.

“At a time we are yet to see the value of the N7.6billion loan for Akufo and Eruwa farm settlements. At a time we are yet to see the impact of the N22. 5billion infrastructure loan, seeking for a bond to the tune of N100billion is the most insensitive step at this stage, committing Oyo State treasury to refunding N100bilion loan, whether in short term and long term is amateurish, especially as it concerns public finance.

“If the government of Engr Seyi Makinde eventually cornered the N100billion loan, the government of Engr Seyi Makinde m would have successfully increased Oyo State debt profile by adding N139.5billion within two years.”