Oyo State Deputy Governor, Alhaji Rauf Olaniyan, on Saturday said the state government’s decision to finance developmental projects through N100 billion bond was in order.
Olaniyan told newsmen in Ibadan that such borrowing would shore up the meagre monthly federal allocation and internally generated revenue internally (IGR) accrued to the state.
The state government had faced criticism over a proposed N100 billion bond to finance some projects.
Critics had asked why the state government was proposing another N100 billion bond after it had taken N39 billion loan to make N139 billion within two years.
Olaniyan explained that the monthly federal allocation and IGR were not enough for the state to embark on developmental projects.
He said that funds accruing to the state’s purse was decreasing daily, adding that the situation necessitated the need to borrow to execute developmental projects.
The deputy governor faulted the comparing of the loan taken by the immediate past administration and what the present administration has taken since inception.
Olaniyan said that the immediate past administration need not borrow at all, considering the several funds accrued to it, such Paris club, excess crude oil and some over-payment refunded to it.
He said that those funds accrued to the immediate past administration were responsible for the projects executed, “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 overpayment refund made to Oyo state government.
“There is nothing like that now. The people of Oyo state have elected us, they should give us the chance; we will not betray them. They should give us the support to deliver,’’ Olaniyan said.