The Oyo State House of Assembly has approved a combined N400 billion financing arrangement involving United Bank for Africa (UBA), comprising a fresh N100 billion loan for infrastructure development and a N300 billion refinancing facility for an existing contractors’ loan.
The approval followed a request by Governor Seyi Makinde, which was presented to lawmakers during plenary on Wednesday, October 21, 2026, by the Speaker of the Assembly, Adebo Ogundoyin.
The N100 billion loan is intended to support ongoing infrastructure projects and other development initiatives across the state’s 33 local government areas. The facility carries an interest rate of 22 per cent, subject to prevailing money market conditions, and a repayment period of 48 months.
The second component involves refinancing an existing N300 billion contractors’ finance facility previously obtained from Access Bank at an interest rate of 26 per cent. Under the proposed arrangement, UBA will take over the facility at a reduced interest rate of 22 per cent, representing a four-percentage-point reduction.
The refinancing is expected to lower the state government’s borrowing costs and consolidate its contractors’ financing obligations under one financial institution.
The terms of the fresh N100 billion loan also include a management fee of 0.25 per cent annually and an advisory fee of 0.5 per cent per annum, both calculated on the outstanding balance. The facility provides for a three-month moratorium on principal and interest repayments, although interest accrued during the period will be recovered through subsequent instalments.
During deliberations, lawmakers defended continued investment in infrastructure, arguing that completing ongoing projects would improve public services, stimulate economic activities and create employment opportunities across the state.
Among the projects highlighted were the Ladoke Akintola University of Technology Teaching Hospital in Oyo town, the Rashidi Ladoja Circular Road and the Ido-Eruwa Road. Lawmakers said their completion would improve transportation, strengthen commercial activities and enhance residents’ access to essential services.
The Assembly’s approval provides legislative backing for the proposed financing arrangements. While the N100 billion facility represents fresh borrowing, the N300 billion component is intended to restructure an existing debt rather than constitute an additional N300 billion in new borrowing.
The development comes amid continuing discussions about public borrowing, infrastructure delivery and the management of state finances in Nigeria.
