The All Progressives Congress (APC) governorship candidate in Oyo State, Senator Sharafadeen Abiodun Alli, has cautioned Governor Seyi Makinde against what he described as reckless spending and indiscriminate borrowing in the remaining months of the current administration.
Alli, through his campaign organisation, warned that financial decisions taken towards the end of the government’s tenure must not mortgage the future of Oyo State or impose avoidable debt burdens on succeeding administrations and generations.
In a statement issued on Tuesday and signed by Bisi Oladele, Director of Media and Publicity of the Senator Sharafadeen Alli Campaign Organisation (SSACO), the campaign team expressed concern over reports that the Makinde administration was planning to initiate the process of securing another ₦100 billion loan from a commercial bank.
The organisation also questioned the proposed expenditure of ₦4.2 billion on local government elections, which it said was already subject to litigation involving members of the governor’s party.
The concerns, according to the statement, came against the backdrop of the Oyo State House of Assembly’s approval of a ₦200 billion bond in June to refinance existing debts.
The campaign organisation urged the governor to exercise restraint and ensure that any new financial commitment was justified, transparent and consistent with the long-term interests of the state.
“We acknowledge that Governor Makinde still has about seven months before the expiration of his tenure and retains the constitutional authority to administer the affairs of the state within the limits of the law.
“We, however, warn that the remaining months of his term must not become an opportunity for reckless expenditure, questionable borrowing or the creation of financial liabilities that could constrain future governments,” the statement said.
SSACO Questions Proposed ₦100bn Loan
The campaign organisation said the reported ₦100 billion commercial bank facility raised questions about its justification, particularly in view of prevailing commercial lending rates and the state’s existing financial obligations.
It called for clarity on the purpose of the proposed loan, its repayment structure, collateral arrangements and the projects it was intended to finance.
On the proposed ₦200 billion bond, SSACO demanded comprehensive disclosure of the existing debts to be refinanced, the interest obligations attached to them, the bond’s pricing and maturity period, and the projected savings, if any, to the state.
The organisation maintained that the public deserved sufficient information to assess the implications of the borrowing arrangements for Oyo State’s finances.
Warns Banks Against Reckless Lending
SSACO also cautioned commercial banks and other financial institutions against granting loans to the Makinde administration without conducting rigorous due diligence, assessing the state’s repayment capacity and complying with applicable financial regulations.
The statement warned that financial institutions must not disregard prudential lending standards when considering credit facilities for a sitting government.
“Financial institutions cannot afford to disregard prudential lending standards merely because a sitting governor is seeking credit facilities. The protection of public funds and the long-term financial stability of Oyo State must take precedence over short-term commercial interests,” it said.
The campaign organisation further argued that any lending arrangement should be based on sound financial assessment and reasonable terms, adding that public interest must remain central to decisions involving government borrowing.
Demands Disclosure of State’s Debt Profile
The organisation urged the Makinde administration to publish an updated statement of Oyo State’s domestic and external debt obligations, debt-servicing commitments, outstanding contractual liabilities and projected fiscal position ahead of the next administration’s assumption of office in May 2027.
It also called on the Oyo State House of Assembly to exercise effective oversight over borrowing proposals and significant expenditure approvals rather than treating executive requests as routine matters.
According to the statement, transparency and accountability are necessary to ensure that the state’s financial commitments do not undermine the capacity of future administrations to fund essential services and development projects.
‘Do Not Mortgage Oyo’s Future’
The campaign organisation insisted that the remaining months of the current administration should be marked by responsible financial management and strict adherence to the law.
“Let Governor Makinde be reminded that the remaining seven months of his tenure are not a licence to mortgage the future of Oyo State. The authority to govern is not an unrestricted authority to borrow, spend or burden generations yet unborn with questionable financial obligations,” the statement said.
It added that every borrowing decision should be justified, every expenditure subjected to public scrutiny, and every financial commitment assessed against the long-term interests of residents.
“The people of Oyo State must not be presented with a mountain of debts and irreversible financial commitments on May 29, 2027. We will continue to demand accountability and insist on compliance with the law,” the statement concluded.
The claims concerning the proposed ₦100 billion loan, the ₦200 billion bond and the ₦4.2 billion local government election expenditure were presented by the campaign organisation. The statement did not include a response from the Oyo State Government.
