Makinde explains €55m French health loan, says 35% converted to grant

Oyo State Governor Seyi Makinde has provided details of the €55 million French government healthcare financing facility secured for the state, saying 35 per cent of the loan has been converted to a grant.

Mr Makinde gave the clarification while addressing workers at the Oyo State Secretariat, Ibadan, on Friday following his return from leave.

“As things stand, 35 per cent of the money has already been converted to a grant,” Mr Makinde said.

The governor said the loan facility, which is intended to support the state’s healthcare initiative, carries an interest rate of 0.0006 per cent and is repayable over 20 years, according to Mr Makinde’s statement on X.

The governor stated that the fund was initially promised to Oyo State in 2019, but its release was delayed following a request by the federal government that the fund be shared among other states in the country.

According to him, the French government rejected the request and insisted that the funds be used for the Oyo State healthcare programme.

The governor noted that the financing would not simply be transferred to the Oyo State Government as cash, but paid to the French companies supplying medical equipment to hospitals in the state.

“However, 70 per cent of the fund will be paid directly to French companies by the French government to supply medical equipment to our hospitals,” he said.

French Treasury’s €55 million concessional loan

The French Treasury had confirmed in January 2022 that the €55 million concessional financing had been approved for a healthcare capacity-building project in Oyo State.

According to the French government, the project’s fund utilisation includes the modernisation of 351 primary healthcare centres and improvements to emergency services, maternity units, neonatal services and operating theatres.

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The French government also said the financing is structured so that payments are made directly to the companies implementing the project as work progresses, while the Nigerian government repays the French state according to the agreed terms.

The facility has recently come under public and political scrutiny following concerns over how the funds would be deployed by Mr Makinde for his presidential bid in the upcoming 2027 general election.