Makinde: 35% of French loan for Oyo converted into grant — Premium Times Nigeria
Governor of Nigeria’s Oyo State, Seyi Makinde, said that 35% of the €55 million French healthcare financing package has already been converted into a grant. He told employees of the state secretariat in Ibadan after returning from vacation, Premium Times Nigeria reports.
Financing terms
According to Makinde, the loan has an interest rate of 0.0006% and must be repaid over 20 years. He noted that the funds were initially promised to Oyo State in 2019, but their allocation was delayed after the Nigerian federal government requested that the financing be shared among other states.
The governor said that the French government rejected this proposal and insisted that the money be used for Oyo State’s healthcare programme. According to him, the financing will not be transferred to the state government in cash: the French government is to pay 70% of the amount directly to French companies that will supply medical equipment for hospitals.
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Modernisation of medical facilities
In January 2022, the French Treasury confirmed approval of €55 million in concessional financing for a healthcare system development project in Oyo State. The project provides for the modernisation of 351 primary healthcare facilities, as well as improvements to emergency services, maternity and neonatal wards, and operating theatres.
The French side said that payments to contractor companies would be made in stages as work is completed, while the Nigerian government would repay the funds to the French state in accordance with the agreed terms. The financing has become the subject of public and political attention due to concerns about how Makinde may use these funds in connection with his presidential campaign ahead of the 2027 general elections.
