Makinde blames forex volatility for ₦63bn Government House reconstruction cost

Summary

• Governor says ₦63bn cost covers buildings, roads, and facilities in Government House and chalets
• Blames foreign exchange rate instability for inflated figures, citing the World Bank loan example
• Restates commitment to economic growth, education reform, and healthcare delivery
• Assembly members praise leadership, seek more focus on rural roads and health infrastructure

Ibadan — Oyo State Governor, Seyi Makinde, has defended the ₦63 billion earmarked for the reconstruction of the Government House, describing the public uproar as unwarranted and attributing the cost to Nigeria’s volatile foreign exchange environment.

During his 2025 State of the State Address at the Oyo State House of Assembly Complex on Friday, Governor Makinde explained that the funds would cover comprehensive reconstruction work, including buildings, roads, and other essential facilities within the Government House and its adjoining chalets.

“Yesterday, I trended for the wrong reason, because people were saying we want to spend ₦63bn to renovate the Government House,” Makinde said. “My answer to them is just to point our attention to one thing… In 2019, the \$200m Ibadan Urban Flood Management Project loan was recorded as ₦70bn in our books. Today, due to the exchange rate, the same loan is now recorded as ₦320bn.”

Makinde used the opportunity to highlight how the administration had prudently managed state finances, noting that Oyo State returned \$18 million of the World Bank loan after completing the flood management project under budget.

“Before, we were paying ₦700 million monthly to service that loan. Today, it is N3 billion. And that is not because we borrowed more — it’s purely due to exchange rate movement,” the governor said. “Managing the exchange rate is beyond my power; it’s on the exclusive list. But within our control, we will continue to act in the best interest of our people.”

The governor reiterated his administration’s commitment to building a resilient economy, enhancing the quality of life for residents, and securing the state’s future. He listed several economic achievements, including the designation of the Fasola Agribusiness Industrial Hub as Nigeria’s first Agricultural Transformation Centre by the African Development Bank (AfDB), and the admittance of Oyo as the first sub-national in Africa into the World Union of Wholesale Markets.

Other highlights included the ongoing upgrade of the Samuel Ladoke Akintola Airport, with the first phase set to be commissioned in October 2025, and the continuation of key road projects like the 87-kilometre Rural Access and Agricultural Marketing Project (RAAMP) and the 48-kilometre Ido-Eruwa Road. He also assured that more inner roads would be rehabilitated, especially in the Ogbomoso and Oyo zones.

On social infrastructure, Governor Makinde promised to bridge the education gap between rural and urban areas through continuous classroom upgrades and the recruitment of education personnel. He also pledged to sustain the delivery of healthcare programmes that would reach more residents across the state.

Addressing the state’s upcoming 50th anniversary in February 2026, Makinde expressed excitement about presiding over Oyo at such a milestone, revealing plans to procure two aircraft for security surveillance ahead of the celebration. “We will celebrate our state and honour those who made it what it is today,” he said.

Earlier, Speaker of the House, Rt. Hon. Adebo Ogundoyin, commended the governor for his dedication to workers’ welfare, particularly the approval for the recruitment of 181 new Assembly staff. He affirmed the Assembly’s commitment to delivering quality legislation and oversight.

Lawmakers, including Deputy Speaker Hon. Mohammed Fadeyi, Majority Leader Hon. Sanjo Adedoyin, and others, praised the governor’s people-centred governance but also called for increased attention to the resuscitation of the LAUTECH Teaching Hospital Annexe in Oyo, and improvements in rural infrastructure, education, and healthcare.

Dignitaries present at the event included PDP Deputy National Chairman (South) Ambassador Taofeek Arapaja, former Deputy Governors, the Chief Judge of Oyo State, and other top government functionaries, traditional rulers, and community leaders.

Governor Makinde closed his speech with a message of vision and resolve: “We are not building for applause. We are building for impact… The work is not finished, but the foundation is firm. The evidence is visible. The world is watching. And posterity will judge that, in our time, we chose to build a legacy.”