The All Progressives Congress (APC) governorship candidate in Oyo State, Senator Sharafadeen Alli, has questioned a reported plan by Governor Seyi Makinde’s administration to obtain a fresh N100bn loan, warning against financial decisions that could saddle the state with additional debt ahead of the 2027 change of government.
Alli, through his campaign organisation, also raised concerns over the N200bn bond approved by the Oyo State House of Assembly in June to refinance existing debts, urging the government to disclose the implications of its borrowing plans for the state’s finances.
In a statement issued on Tuesday and signed by the Director of Media and Publicity of the Alli Campaign Organisation, Bisi Oladele, the organisation also faulted a proposed N4.2bn expenditure on local government elections, which it said was facing litigation involving members of the governor’s party.
The organisation warned that decisions taken in the closing months of Makinde’s administration must not create avoidable financial obligations for the incoming government.
It acknowledged the governor’s constitutional authority to administer the state until the end of his tenure but insisted that such powers should be exercised with due regard for fiscal responsibility and accountability.
“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.
On the reported N100bn commercial bank facility, the campaign organisation demanded clarification on its purpose, interest rate, repayment structure, collateral arrangements and the projects it was intended to finance.
It also called for a detailed account of the N200bn bond, including the debts to be refinanced, the interest obligations attached to them, the bond’s pricing and maturity period, and the expected savings to the state.
The organisation urged commercial banks and other financial institutions to conduct thorough assessments of the state’s repayment capacity before granting any fresh credit facilities, stressing the need to comply with applicable financial regulations.
It said lenders should not compromise prudent lending standards when dealing with a sitting government, adding that any questionable lending decisions should be subjected to appropriate scrutiny.
The campaign organisation further called on the Makinde administration to publish an updated statement of the state’s domestic and external debts, debt-servicing obligations, outstanding contractual liabilities and projected fiscal position ahead of the next administration’s inauguration in May 2027.
It also urged the state House of Assembly to scrutinise borrowing proposals and major expenditure approvals, rather than treating requests from the executive as routine matters.
“Every kobo borrowed today must be justified, every expenditure must withstand public scrutiny, and every financial commitment must serve the enduring interests of our people,” the statement added.
The organisation warned that Oyo State should not enter the next administration with undisclosed liabilities or financial commitments that could limit its capacity to meet public needs, insisting that the governor must remain accountable for the state’s finances until the end of his tenure.
