By Tanko Mohammed
The Oyo state government has explained that its N100 billion bond to finance some projects was in the interest of the state.
Alhaji Rauf Olaniyan, the State Deputy Governor, said the government’s decision to finance developmental projects through borrowings was in order.
Olaniyan explained that such borrowing would shore-up the meagre monthly federal allocation and internally generated revenue internally (IGR).
Critics had questioned the rationale of the bond when the state had taken a loan of N39 billion.
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 was decreasing daily, adding that the situation necessitated the need to borrow to execute critical 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 needed not borrow considering the huge amount that accrued to it, such Paris club, excess crude oil and some overpayment refunded to it.
“The last administration does not need to borrow money then, because there was enough money.
