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Oyo State Legislature Ratifies Updated €55 Million French Loan for Healthcare Enhancement
The Oyo State House of Assembly has officially approved the amended terms of a €55 million concessional loan from the French Treasury, designated for the Oyo State Healthcare Project VI. This endorsement aligns with the recent authorization granted by Nigeria’s National Assembly, marking a significant step forward in the state’s healthcare advancement agenda.
Background and Legislative Process
Governor Seyi Makinde formally requested the Assembly’s renewed approval following adjustments made by the French Government to the loan’s conditions. These changes were necessitated by project delays and evolving global economic factors. The Speaker of the House, Rt. Hon. Adebo Ogundoyin, presented the Governor’s letter during the plenary session held on Tuesday.
Originally, the loan was sanctioned in July 2025 under highly favorable terms, designed to support the state’s ambitious healthcare infrastructure upgrades. The revised agreement, however, reflects a shift in financial parameters while maintaining the loan’s strategic importance.
Revised Loan Terms and Financial Implications
The updated loan conditions now feature an interest rate of 0.658%, a maturity period of 20 years, and a grace period of 5 years. This contrasts with the initial terms, which offered an exceptionally low interest rate of 0.0092%, a 40-year repayment tenure, and a 15-year moratorium. Despite these modifications, the loan retains a 35% grant component, underscoring its role as a critical funding source for healthcare reforms in Oyo State.
Following the French Government’s revision, the Oyo State Executive Council directed the Ministry of Finance to seek fresh legislative approval, facilitating the recent Assembly deliberations and subsequent ratification.
Commitment to Transparency and Accountability
Speaker Ogundoyin praised Governor Makinde for his transparent management of public funds, emphasizing the Assembly’s dedication to supporting initiatives that deliver measurable benefits to the populace. Lawmakers collectively pledged to uphold stringent oversight and ensure the responsible utilization of the loan proceeds once disbursed.
Planned Healthcare Improvements and Facility Upgrades
The €55 million loan will finance several key projects, including the establishment of advanced emergency care units, trauma response teams, and neonatal intensive care services. Additionally, the funds will support the digital transformation of health systems to enhance operational efficiency, as well as the refurbishment and equipping of primary and secondary healthcare centers.
Significant investments are earmarked for the Ring Road State Hospital, where new facilities such as an Advanced Medicine Centre, a Maternal and Child Health Unit, and an Emergency Medicine Unit will be constructed. Other hospitals slated for upgrades include general hospitals in Iseyin, Eruwa, Kishi, and Aremo, alongside specialist hospitals in Saki, Ogbomoso, and Jericho.
Advancing Healthcare Access Across Oyo State
With the Assembly’s endorsement, Oyo State is poised to unlock vital funding that will accelerate the expansion and modernization of its healthcare infrastructure. These developments are expected to significantly improve access to quality medical services for residents statewide, reinforcing the government’s commitment to health sector transformation.
