Makinde justifies N63.4bn Government House rehabilitation

By Adejayan Gbenga –

Oyo State Governor, Engr. Seyi Makinde has defended the N63.4 billion approved for the rehabilitation of the Government House, attributing the cost to the volatile exchange rate of the naira to the dollar.

The approval has sparked criticism among stakeholders who consider the amount excessive for such a project.

Speaking during his State of the State Address at the House of Assembly in Ibadan on Friday, Makinde explained that foreign exchange fluctuations significantly impact the state’s financial obligations.

He cited the servicing of a $200 million World Bank loan inherited from the previous administration, noting that the naira equivalent of the loan has ballooned from ₦70 billion at an exchange rate of ₦350/$ to over ₦300 billion due to naira depreciation.

“When we assumed office, monthly repayments stood at ₦700 million. But as of now, we are compelled to pay ₦3 billion monthly,” the governor stated.

Makinde emphasized the state’s helplessness in managing the effects of exchange rate fluctuations, pointing out that currency matters fall under the exclusive jurisdiction of the Federal Government.

He noted that while Oyo State has no control over exchange rate policy, it is still forced to adjust its fiscal planning to cope with the consequences.