Alhaji Rauf Olaniyan, deputy governor of Oyo state, said Saturday that the state government’s decision to finance development projects through loans was in order.
Olaniyan told reporters in Ibadan that such loans would underpin the meager monthly federal allowance and accumulated internally generated income (IGR) for the state.
Recall that the state government had faced criticism for a proposed bond of N100 billion to finance some projects.
Critics had asked why the state government was proposing another N100 billion bond after taking a loan of N39 billion to obtain N139 billion in two years.
Olaniyan explained that the monthly federal allocation and the IGR were not enough for the state to embark on development projects.
He said that the funds accumulated in the state’s portfolio decreased daily, adding that the situation required the need to borrow to carry out development projects.
The lieutenant governor criticized the comparison of the loan taken by the immediate previous administration and what the current administration has taken since the beginning.
Olaniyan said that the immediate past administration does not need to borrow at all, taking into account the various funds accumulated, such as the Paris club, excess crude oil and some overpaid repayments.
He said that those funds accumulated for the immediate previous administration were responsible for the executed projects, “which are not available now.”
“The last administration does not need to borrow money then, because there was enough money.
“They have the Paris club, excess crude oil, and some reimbursements for overpayments made to the Oyo state government.
“There is nothing like it now.
“The people of the state of Oyo chose us, they should give us the opportunity; We will not betray them.
“They should give us the support to deliver,” said Olaniyan.
The lieutenant governor also congratulated Muslims across the state and urged people to continue their departure in peace and harmony.
“We should continue to go out in peace; The state of Oyo belongs to all of us, “he said.