Sanitation Revolving Fund: Oyo Government and UNICEF Seek Loan Recovery from Microfinance Institutions

The Oyo State Government and the United Nations International Children’s Fund (UNICEF) have stressed the importance of recovering loans provided by Microfinance Institutions (MFIs) to Toilet Business Owners (TBOs). This move is part of an initiative to make Oyo State free from open defecation.

During a review meeting held in Ibadan, covering a 15-month cycle of the Sanitation Revolving Fund, both the state government and UNICEF representatives set a plan to ensure the recovery of these revolving loans. The loans, aimed at facilitating the construction of toilets in Ona-Ara and Egbeda under the Open Defecation Free (ODF) project, have seen significant success, though some TBOs have defaulted.

The Chairman of Oyo State Rural Water Supply and Sanitation Agency (OYORUWASSA), Alhaji Babalola Afobaje, directed MFIs to pursue defaulters vigorously. He made this directive during a meeting with UNICEF officials. Both Egbeda and Ona Ara Local Government Areas are on the path to being certified as open defecation free.

Alhaji Afobaje expressed his gratitude to UNICEF for their financial and technical support in the state’s efforts to eliminate open defecation. He praised the commitment of the MFIs in managing the sanitation revolving fund effectively and assured them of OYORUWASSA’s continued partnership to recover the loans issued to households.

The General Manager of OYORUWASSA, Mr. Adeduntan Adeniyi, stated that the substantial funds provided to MFIs for toilet construction were used judiciously, moving Oyo State closer to achieving its ODF goal. He noted that the funds are now due for liquidation, prompting the need for this review meeting.

UNICEF’s WASH Consultant, Miss Faith Gbagidi, emphasized the necessity of addressing the challenges faced during the disbursement and recovery of the Sanitation Revolving Fund. She highlighted the need to review the 15-month cycle to improve results and ensure the sustainability of the project.

The meeting concluded with a renewed commitment to prioritize rural communities and ensure that the sanitation revolving fund is recovered and used effectively to achieve a cleaner and healthier Oyo State.