The Kwara State Government yesterday said the N10billion loan it plans to take from a commercial bank is to enable it complete some projects and embark on new ones.

The Action Congress of Nigeria (ACN) and the Alliance for Democracy (AD) in the state had described the proposed loan as "fraud" and asked the ruling Peoples Democratic Party (PDP) government for an explanation.

The opposition alleged that about N4.5billion of the N17billion bond obtained by the Bukola Saraki administration from the capital market was diverted for other projects other than those they were originally meant for.

Commissioner for Planning and Economic Development Tunde Adeoti and the Special Assistant (Investment, Policy and Strategies) to the governor, Yomi Ogunsola addressed reporters on the projects implemented with the bond and those planned to be completed with the proposed loan.

Ogunyomi, who was a part of the previous administration, said some of the projects were discontinued by the past administration because the foreign partners were not forthcoming on their counterpart funding.

He noted that after the state had taken the N17billion bond, there was a capital market crash which incapacitated the investing companies. 

The governor’s aide, who said the cost of some of the projects increased tremendously from what had been estimated, added that affected projects include Kwara Truck Plaza, Commercial Agriculture Phase II, Asa Dam Mixed Up and construction of a new state secretariat.

He said this forced the government to seek approval of the Security and Exchange Commission (SEC) to spend about N4.5billion of the bond on another project, after the projects they were meant for had been discontinued.

Ogunyomi said after the SEC had approved the fund, the government spent it on the renovation of the old secretariat (in place of the planned new one), Ilorin metropolitan street light, rural roads, construction of a shopping mall and renovation of the state’s stadium complex.

The governor’s aide said the present administration resolved to take the loan from a commercial bank, instead of accessing the N13billion bond balance of the N30billion from the capital market, because the processes and some other factors made the former easier than the latter.

He said besides funding fresh projects, the N10billion loan would also be spent on ongoing projects under the bond such as the ultra-modern diagnostic centre and Kwara State University (KWASU).

Ogunyomi noted that the repayment of the bond with its interest had been made to terminate under the present administration. He assured that it would not be inherited by future governments.