Governor Seyi Makinde of Oyo State has clarified the reason behind the ₦63.4 billion recently approved for the renovation and reconstruction of the Government House in Agodi, Ibadan. He said the rising exchange rate is the major factor driving the cost.
Speaking during a special session to mark the second anniversary of the 10th Oyo State House of Assembly, Makinde addressed public concerns over the project. He stated that the cost of materials and services had risen sharply due to the naira’s continued fall against the dollar.
The governor said he has always managed state resources with care. However, he admitted that the economic situation had made even basic projects more expensive than before.
Before he assumed office in May 2019, the previous administration had secured a $200 million loan from the World Bank for the Ibadan Urban Flood Management Project. At that time, the exchange rate stood at ₦350 to a dollar, which meant the naira value of the loan was around ₦70 billion.
Now, with the naira exchanging at over ₦1,500 to a dollar, the same loan is valued at about ₦320 billion in the state’s books. He explained that the state’s monthly loan repayment has also jumped from ₦700 million to ₦3 billion due to the exchange rate.
The governor said, “People are talking about the ₦63 billion Government House upgrade. Most of them do not live in Oyo State and are unaware of our local reality. These comments mostly come from outsiders who lack the full picture.”
He emphasized that his administration had not wasted money. After completing the flood control project, his government returned $18 million to the World Bank, showing commitment to accountability.
According to him, the loan was fully accounted for. The flood management project was completed without adding any new debt, even though the naira value had increased dramatically.
Makinde explained that decisions like exchange rate control are not within his power. He said that responsibility belongs to the Federal Government. However, his administration must continue to make sound choices in the best interest of Oyo residents.
“We cannot control the exchange rate. That is not a state matter. But we will always act wisely with what we have,” he said.
He assured citizens that he would continue to evaluate government decisions and make adjustments if necessary.
Earlier in the week, Oyo’s Commissioner for Information, Dotun Oyelade, confirmed the project’s approval. He described the current condition of the Government House as outdated and unfit for a modern state capital.
However, the project has drawn criticism on social media. Many people believe that ₦63.4 billion is too high a figure, especially in these tough economic times.
Governor Makinde urged the public to look at the facts. He reminded everyone that today’s construction costs are no longer what they were a few years ago.
He said that the administration’s record shows fiscal discipline. He insisted that the Government House project is not wasteful spending but a necessary step for modern governance.
