The Oyo State Government has assured that the French Treasury Loan secured for the state’s development programme is being implemented in line with the purpose for which it was approved by the French authorities.
Special Adviser to Governor Seyi Makinde, Mrs. Ronke Adedayo, who facilitated the sourcing and acquisition of the facility on behalf of the state government, gave the assurance while speaking with journalists during the week.
Adedayo said the loan was subject to stringent international financing protocols that would make it impossible for the funds to be diverted, reallocated or deployed for purposes outside the approved project scope.
According to her, the financing arrangement provides for a ring-fenced disbursement structure, with each tranche tied to specific project milestones.
She added that the facility was also subject to mandatory compliance audits by relevant French authorities and independent monitors, as well as a restricted expenditure framework.
Adedayo said these conditions ensured that the state government could not unilaterally alter the purpose of the facility.
She stated: “Under these conditions, no government can unilaterally alter the use of the loan, nor can the funds be applied to any project outside the original scope approved by the French Treasury and AFD.
“Any deviation would immediately trigger international compliance violations and halt further disbursement. Those insinuating that the funds might be used for electioneering are merely exhibiting their ignorance.”
The governor’s aide maintained that the Makinde administration remained committed to transparency and compliance with international financing standards in the implementation of the facility.
“Just as Governor Seyi Makinde has said, the Oyo State Government remains committed to full transparency and adherence to all international financing standards.
“The French Treasury Loan will continue to be implemented strictly for its designated purpose, in line with global best practices and the development priorities of Oyo State,” she said.
Adedayo also explained why a facility obtained in 2020 was only being accessed in 2026, attributing the delay to the lengthy bureaucratic processes involved in securing the required Federal Government approvals.
She said the facility was secured on highly concessionary terms, with very low interest rates, making it favourable to the state.
The Special Adviser further disclosed that the financing arrangement contained a significant French-content component involving the provision of equipment.
According to her, the equipment component is fixed under the agreement and cannot be altered or tampered with by the state government.
She reiterated that the loan would therefore remain tied to the development programme for which it was approved, stressing that its implementation was subject to the conditions attached to the international financing arrangement.
