Governor Seyi Makinde of Oyo state on Friday said fluctuating exchange rate accounts for the N63.4billion approved for the overhauling and reconstruction of the Government House, Agodi, Ibadan.

Makinde who observed that he has been trending on the social media for the wrong reason since the news of the approval hit the airwaves noted that, items required for construction and cost are hugely determined by forces beyond his control.

Noting that, he has shown prudence in managing the state resources since his assumption of office, the governor said he would continue to do whatever is right for the state but would continue to evaluate his position, to be sure no wrong decision was taken, and make necessary corrections, as situation may demand.

Makinde spoke while delivering a State of the State address to celebrate the 2nd year anniversary of the inauguration of the 10th Oyo State House of Assembly at the hallowed chamber.

The Commissioner for Information, Prince Dotun Oyelade had on Wednesday dropped the hint of the approval of N63,479,858,000 for the overhauling of the structures of the Government House.

Noting that the approval was given during the State Executive Council meeting, Oyelade had described the current state and ambience of the Government House as an embarrassment and unbefitting facility.

The approval has however generated controversies among the stakeholders, particularly on the aocial media, with many people saying the estimated amount for the project is on the high side.

Addressing the lawmakers and other stakeholders on Friday, Governor Makinde who drew a comparative analysis on the impact of the fluctuating exchange rate explained that the cost of servicing debt inherited from the previous administration has multiplied till date.

He added that the state is currently grappling with a steep increase in its foreign debt repayment obligations to the WorldBank, which have increased from N70billion to about N320billion, due to exchange rate volatility.

Makinde who traced the root of the debt to a $200 million loan obtained from the World Bank during the administration of his predecessor, disclosed that at the time the loan was secured, the exchange rate stood at N350 to a dollar, bringing its naira equivalent to approximately N70 billion.

He said, “We have been trending for the wrong reasons, where people said we want to spend N63bn to upgrade or renovate the Government House. Well, those people on the social media, they are not from Oyo State. They don’t know what we are talking about. My answers to them is just to cast our attention to one thing and one thing alone.

“Before I came into office, the previous administration took a loan from the World Bank worth $200million USD, for the Ibadan Urban Flood Project. As of the time I came in in May 29, 2019, that dollr denominated loan was in the book of Oyo state as N70billion because dollars to Naira at the time was around N350 to a dollar. And we were paying about N700million every month to service that loan.

“We finished the Ibadan Urban Flood Management Project, its all done. Before I came in, $100million has been spent. $50million USD committed and this administration was supposed to spend $50million USD to compete the project.

“But we didn’t spend that amount. After meeting all the commitments made by the previous administration, we returned $18million USD to the WorldBank, which we didnt spend. That is to show how we have managed projects prudently in Oyo state.

“But, that is not where I am going, my point is, in May 29, 2019, in Oyo state books, that loan that we had at N70billion as what Oyo State was owing, now fast forward till today, the project is completed without adding one inch of drainage to the project, just simply by exchange rate movements, Oyo State today is owing N320billion.

“Oyo State is owing N320billion because that N70billion calculated at N350 to a Dollar is now the same about but calculated about N1,540, that is our reality.

“And we have now moved from paying N700million monthly when I came in in 2019 to paying N3billion monthly now, to service that loan. But, can we sleep when it’s raining? Yes. Because Ibadan Urban Flood has basically tamed the likelihood of any flooding, we have an advanced warning system installed already.

“But, my point is, to manage our exchange rate is not for me to determine in Oyo State, it is on the exclusive list. It is the Federal Government that has the responsibility to manage our exchange rate. But, whatever is it, we operate within Nigeria and we will do what is in the best interest of our state