The governor of Oyo State, Seyi Makinde, addressed the controversy surrounding the planned reconstruction of the Oyo State Government House on Friday, June 20. He explained that the instability in foreign exchange, among other factors, is responsible for the perceived high cost of the project.
The governor gave the explanation while presenting state of the State address, held at the Oyo State House of Assembly Complex, Secretariat, Agodi, Ibadan.
The project, according to the governor, is expected to cover the reconstruction of buildings, roads and other ancillary facilities in the Government House and adjoining chalets.
He said: “Yesterday, I trended for the wrong reason, because people were saying we want to spend N63bn to renovate the Government House. My answer to them is just to point our attention to one thing and I want you to listen to me attentively.
“Before I came into office, the previous administration took a loan of $200 million from the World Bank for the Ibadan Urban Flood Management Project (IUFMP). As of the time I came in on May 29, 2019, that dollar-denominated loan was in the book of Oyo State as N70 billion, because a dollar to a Naira was around N350. We were paying about N700 million every month to service the loan. But we finished the IUFMP, though, before I came in, $100 million had been spent and $50 million committed.
“This administration was supposed to spend $50 million to complete the projects but we did not spend the amount. We honoured all the commitments made by the previous administration, and returned $18 million to the World Bank, which we didn’t spend. That was how we have managed the project prudently in Oyo State.
“But that is not even where I am going. My point is, in 2019 in the Oyo State books, N70 billion was what Oyo State owed. Fast-forward to today, the IUFMP project is completed without adding one inch of drainage to the project, but simply by the exchange rate movement, Oyo State today owes N320 billion.
“This is because the N70 billion calculated as N350 to one dollar in 2019 is now the same amount, but it is now calculated at about N1,540 to the dollar. That is our reality. We have now moved from paying N700 million on the IUFMP loan when I came in, to now paying N3 billion to service that loan monthly now.
“Can we sleep when it is raining? Yes, because the IUFMP has basically tamed the issue of erosion. We have an Advanced Warning System installed in that place. But, my point is, to manage our exchange rate is not for me to determine in Oyo State. It is on the exclusive list. But whatever it is, we will do what is in the best interest of our state.”
Governor Makinde, who also expressed his excitement that he is the governor of the state at the auspicious period of the state’s 50th anniversary, which comes up in February 2026, said the state is embarking on key efforts to mark the epochal event.
He maintained that the government is planning to purchase two aircraft for security surveillance and that this will be achieved before the 50th anniversary celebration on February 3, 2026, during which the government will celebrate the state and those who have contributed to make it what it is today.
Also in his address, the governor reiterated his administration’s commitment to building a resilient economy, improving the quality of life for the people and securing the future for generations to come.
He noted that through several policies being implemented by the state government and its simple approach to solving complex governance issues, Oyo State has become an investment destination.
Governor Makinde stressed that the government’s efforts have yielded many positive results, including the designation of the Fasola Agribusiness Industrial Hub as Nigeria’s first agricultural transformation centre by the African Development Bank (AfDB), the ongoing construction of the Eruwa Agribusiness Industrial Hub and the admittance of Oyo State into the World Union of Wholesale Market, the first sub-national in Africa to achieve such feat.
Others, the governor noted, are: the ongoing upgrade of the Samuel Ladoke Akintola Airport, which first phase will be commissioned in October 2025; the fixing of the state infrastructure deficit, with major arterial roads across the state; inner roads in Ibadan already done and dusted and the ongoing construction of 87 kilometres of rural roads under the Rural Access and Agricultural Marketing Project (RAAMP).
He said that efforts are also on to complete the 48 kilometres Ido-Eruwa Road.
Makinde asserted that the fixing of inner roads will continue in the coming months, with Ogbomoso and Oyo zones set to become the next ports of call.
He declared that the administration would not relent until the vision of making Oyo State a regional economic powerhouse, a cultural beacon, and a place where every citizen can thrive, is achieved.
In the education and health care sectors, Governor Makinde assured residents of the state that his government would bridge the gap between rural and urban education and continue to upgrade education infrastructure so as to reduce deficit.
He also promised to continue to provide healthcare programmes that would bring benefits to the people of the state.
Earlier in his address, the Speaker of the Oyo State House of Assembly, Rt. Hon. Adebo Ogundoyin, appreciated the governor for prioritising the welfare of the workers and for approving the recruitment of 181 new staff for the Oyo State House of Assembly, among other developments.
He assured the citizens that the 10th Assembly remained committed to delivering quality legislation, robust oversight and responsive representation with sincerity, diligence, and accountability.
Also speaking, House Assembly members, including the Deputy Speaker, Hon. Mohammed Fadeyi, Majority Leader, Hon. Sanjo Adedoyin, Hon. Gabriel Babajide, Hon. Gbenga Oyekola, Hon. Dele Adeola and Hon. Peter Ojedokun, among others, lauded Governor Makinde for his people-oriented leadership.
They all pointed out other areas they would want the government to focus its attention in the coming months, including the resuscitation of LAUTECH Teaching Hospital Annex in Oyo, rural roads in other zones of the state, education and health infrastructure, among others.
The event had in attendance former deputy governor and PDP Deputy National Chairman (South), Ambassador Taofeek Arapaja; former deputy governors, Engr Hamid Gbadamosi and Barrister Hazeem Gbolarumi; wife of a former Governor, Chief Mrs Mutiat Ladoja; Chief Judge of Oyo State, Justice Iyabo Yerima; Secretary to the State Government, Prof Olanike Adeyemo; Chief of Staff, Otunba Segun Ogunwuyi; and Head of Service, Mrs Olubunmi Oni.
Others were Commissioners, Chairmen of Boards and Agencies, Chairmen of local governments councils, traditional rulers, PDP leaders and religious leaders, among other dignitaries.
