Oyo State Governor, Seyi Makinde, has dismissed allegations that the state’s €55 million French concessional loan could be diverted to finance political activities ahead of the 2027 elections, insisting that the facility is dedicated to healthcare development and should not be regarded as a political war chest.
Makinde made the clarification in Ibadan while addressing civil and public servants at the frontage of the Governor’s Office after returning from his one-month leave.
His comments came shortly after the campaign organisation of the Oyo State All Progressives Congress (APC) governorship candidate, Senator Sharafadeen Alli, raised concerns about the planned utilisation of the facility. The organisation warned against using the loan for what it described as hastily conceived or politically motivated projects as the 2027 elections approach.
The controversy centres on the €55 million facility, currently valued at approximately ₦85 billion, which was secured from the French Treasury for healthcare development in Oyo State. The French Treasury officially announced the intergovernmental financing agreement in January 2022, stating that the project was designed to strengthen healthcare capacity across the state.
According to the French Treasury, the original project was designed to modernise 351 primary healthcare centres while strengthening emergency services, maternity and neonatal care and operating facilities across Oyo State. The financing also involves French companies and equipment as part of the structure of the project.
Makinde, while responding to the concerns, described the facility as an important achievement for the state. He explained that the financing originated from a larger €80 million facility earmarked by the French Treasury, from which Oyo State eventually secured €55 million following engagements in Paris and Abuja.
He further explained that the facility carries highly concessional terms and includes a substantial French-content component in the form of equipment, while noting that 35 per cent of the facility had been converted to a grant.
The financing arrangements were subsequently revised. Reports on the approval by the Oyo State House of Assembly indicate that the revised terms retained the 35 per cent grant component, while the loan carries a 0.658 per cent interest rate, a 20-year maturity period and a five-year grace period.
The scale of the healthcare intervention is significant. Project information from Ellipse Projects, the French company implementing the programme, says the €55 million project covers the renovation, modernisation and expansion of healthcare facilities across Oyo State. It lists interventions including the equipping of 200 primary healthcare centres, four maternity and neonatal centres and five emergency departments with ambulances.
Against this background, Alli’s campaign organisation has demanded greater transparency in the management of the facility. It called for the disclosure of the loan’s terms, disbursement schedule, contractors, procurement procedures, implementation timelines and the hospitals expected to benefit from the project.
The organisation also expressed concern about the financial obligations associated with the facility and urged relevant institutions, civil society groups, healthcare professionals and the media to monitor its implementation.
Makinde, however, rejected the suggestion that the healthcare financing would be deployed for political purposes, maintaining that the facility was secured to address healthcare needs in the state.
The governor also used his return from leave to appreciate civil and public servants for maintaining government operations during his absence. He commended his deputy, Bayo Lawal, for overseeing the affairs of the state during the period.
Makinde called for continued teamwork within government and respect for constitutional responsibilities, while urging President Bola Tinubu to maintain a similar approach whenever he travels outside the country.
In his remarks, Deputy Governor Bayo Lawal expressed appreciation for what he described as the trajectory of governance under the Makinde administration and pledged his continued support.
With the 2027 political season approaching, the dispute over the €55 million facility places renewed attention on how the funds are deployed, the projects ultimately delivered and the transparency of the implementation process. For Oyo residents, the central issue remains whether the financing produces the promised improvements in healthcare infrastructure, equipment and access across the state.
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