Oyo State Government says the €55 million facility is ring-fenced for healthcare development and subject to strict financing and compliance conditions.
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| Oyo State says the French loan is strictly tied to healthcare development. |
The Oyo State Government has dismissed suggestions that the state’s €55 million French concessional loan could be diverted to fund electioneering ahead of the 2027 general elections.
Special Adviser to Governor Seyi Makinde, Ronke Adedayo, said the facility was subject to strict international financing conditions that restrict how the funds can be disbursed and spent. She spoke with journalists during the week.
According to Adedayo, the financing arrangement has a ring-fenced disbursement structure, with each tranche tied to specific project milestones. She said the facility is also subject to compliance audits by relevant French authorities and independent monitors.
She argued that these conditions prevent the state government from unilaterally changing the purpose of the facility or applying the funds to projects outside the scope approved by the French Treasury and the French Development Agency, AFD.
“Under these conditions, no government can unilaterally alter the use of the loan,” Adedayo said, adding that any deviation could result in compliance violations and the suspension of further disbursements.
The clarification follows earlier criticism from the campaign organisation of Senator Sharafadeen Alli, the APC governorship candidate in Oyo State. The organisation had alleged that the approximately €55 million facility, valued at about N85 billion in the reports, could be diverted to politically motivated projects ahead of the 2027 elections.
Governor Makinde had also previously rejected the allegation, saying he did not need the French loan to finance a presidential campaign and that the facility was secured for Oyo State's development. He said the loan was intended to support healthcare infrastructure across the state.
Adedayo further explained that although the facility was initiated several years ago, access to the funds was delayed by the processes required to obtain relevant Federal Government approvals. She said the financing was secured on concessional terms and includes a French-content component involving equipment that cannot be altered under the agreement.
The controversy therefore centres on the utilisation and oversight of the healthcare facility. While critics have called for greater disclosure of its implementation, the Oyo State Government maintains that the financing conditions restrict the funds to their approved development purpose.