Governor of Oyo State, Seyi Makinde, has defended his administration’s decision to reconstruct and renovate the Government House, attributing the high project cost to the prevailing exchange rate.
The governor made this known during his State of the State address, held to mark the second anniversary of the 10th Oyo State House of Assembly in Ibadan.
He explained that inflation in the exchange rate have significantly impacted the cost of construction materials, many of which are imported.
Makinde added that it is the responsibility of the Federal Government to stabilize the exchange rate to reduce the financial burden on state-level projects.
While speaking, the governor referenced a $200 million loan secured for the Ibadan Urban Flood Management Project by the previous administration, noting that it previously cost the state about ₦700 million monthly to service the debt.
However, due to the current exchange rate, that figure has risen sharply to ₦3.2 billion per month.
