The All Progressives Congress (APC) governorship candidate in Oyo State, Senator Sharafadeen Alli, has warned Governor Seyi Makinde against taking decisions that could mortgage the state’s financial future, following reports that his administration plans to obtain a fresh N100 billion commercial bank loan.
Alli, through his campaign organisation, said the reported borrowing, alongside other major financial commitments in the closing months of the administration, could saddle the incoming government with avoidable debts.
In a statement issued on Tuesday, October 20, the Director of Media and Publicity for the Senator Sharafadeen Alli Campaign Organisation (SSACO), Bisi Oladele, expressed concern over the proposed loan and the reported N4.2 billion expenditure on local government elections currently facing litigation involving members of the governor’s party.
The campaign organisation also questioned the timing of the reported N100 billion loan, coming months after the Oyo State House of Assembly approved a N200 billion bond in June to refinance existing debts.
It warned that accumulating fresh financial obligations without adequate disclosure of their purpose, repayment terms and long-term implications could constrain the next administration and place additional pressure on public finances.
“We warn that the remaining months of his term limit 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 demanded full details of the proposed N100 billion facility, including its intended purpose, interest rate, repayment structure, collateral arrangements and the specific projects it would finance.
It also called for a comprehensive disclosure of the debts to be refinanced with the N200 billion bond, the interest obligations attached to them, the bond’s pricing and maturity period, and the savings expected from the transaction.
The organisation urged commercial banks and other financial institutions to thoroughly assess the state’s repayment capacity before granting new loans, warning against lending practices that could undermine Oyo’s long-term financial stability.
It further called on the Makinde administration to publish an updated statement of the state’s domestic and external debts, debt-servicing commitments, outstanding contractual liabilities and projected fiscal position ahead of the May 29, 2027 handover.
The campaign organisation also urged the Oyo State House of Assembly to subject borrowing proposals and major expenditure approvals to rigorous scrutiny, insisting that public funds must not be committed without clear justification and accountability.
“The authority to govern is not an unrestricted authority to borrow, spend or burden generations yet unborn with questionable financial obligations,” the statement added.
SSACO warned that the people of Oyo State should not inherit mounting debts and irreversible financial commitments when the current administration leaves office.
“The people of Oyo State must not be presented with a mountain of debts and irreversible financial commitments on May 29, 2027,” the organisation said, urging Makinde to ensure that every loan and expenditure serves the long-term interests of the state.
It maintained that the governor’s remaining months in office should be guided by transparency, fiscal responsibility and the need to protect future generations from avoidable financial burdens.
