French loan cannot fund electioneering — Makinde’s aide

By Adeola Badru

IBADAN — The Oyo State Government has said the French Treasury Loan secured for its development programme cannot be diverted for electioneering or other purposes outside the scope for which it was approved.

Special Adviser to Governor Seyi Makinde, Mrs Ronke Adedayo, who facilitated the sourcing and acquisition of the facility on behalf of the state government, disclosed this while speaking with journalists at the weekend.

Adedayo said the facility was being implemented in line with the conditions under which it was approved by the French authorities, adding that its financing structure did not permit the state government to divert, reallocate or deploy the funds to projects outside the approved scope.

According to her, the loan operates under a ring-fenced disbursement arrangement, with each tranche tied to specific project milestones and subject to mandatory compliance requirements.

She added that the facility was also subject to compliance audits by relevant French authorities and independent monitors, as well as a restricted expenditure framework designed to ensure that the funds were used only for their approved purposes.

Adedayo said the safeguards prevented the state government from unilaterally changing the purpose of the facility.

She said: “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 throughout 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 necessary approvals from the Federal Government.

She said the facility was secured on highly concessionary terms, including very low interest rates, which she described as favourable to the state.

The Special Adviser further disclosed that the financing arrangement included a significant French-content component involving the provision of equipment.

According to her, the component was fixed under the agreement and could neither be altered nor tampered with by the state government.

She reiterated that the loan would remain tied to the development programme for which it was approved, with its implementation continuing under the conditions and safeguards attached to the international financing arrangement.

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