Makinde shares details on €55 million French health loan, says 35% is a grant

Oyo State Governor Seyi Makinde has shared information about the €55 million healthcare loan from the French government. He said that 35 percent of the loan has been changed to a grant.

Makinde spoke to workers at the Oyo State Secretariat in Ibadan on Friday after returning from leave. "As things stand, 35 percent of the money has already been converted to a grant," he explained.

The governor said this loan is meant to help improve healthcare in the state. The loan has a very low interest rate of 0.0006 percent and must be paid back over 20 years, according to a statement from Makinde on X.

He noted that this funding was promised to Oyo State back in 2019, but the release was delayed. The federal government had asked that the money be shared with other states in Nigeria.

The French government turned down this request. They insisted that the funds should be used only for Oyo State’s healthcare program. Makinde also mentioned that the money won't just be given as cash to the Oyo State Government.

Instead, it will be paid to French companies that provide medical equipment to hospitals in the state. "However, 70 percent of the fund will be paid directly to French companies by the French government to supply medical equipment to our hospitals," he said.

In January 2022, the French Treasury confirmed that the €55 million financing was approved for a healthcare project in Oyo State. The French government said the funds would be used to modernize 351 primary healthcare centers and improve emergency services, maternity units, neonatal services, and operating theatres.

The financing is set up so that payments go directly to the companies carrying out the work as it progresses. Meanwhile, the Nigerian government will pay back the French government according to the terms agreed upon.

Recently, this funding has faced public and political scrutiny. There are concerns about how Makinde will use the money for his presidential campaign in the upcoming 2027 general election.