The All Progressives Congress (APC) governorship candidate in Oyo State, Senator Sharafadeen Alli, has warned Governor Seyi Makinde against reckless spending and fresh borrowing in the final months of his administration.
Alli, through his campaign organisation, said financial decisions taken before the end of Makinde’s tenure must not saddle the state with avoidable debts or liabilities that could constrain the incoming administration and future generations.
In a statement issued on Tuesday by Bisi Oladele, Director of Media and Publicity of the Sharafadeen Alli Campaign Organisation (SSACO), the campaign expressed concern over reports that the state government was preparing to obtain another N100 billion commercial bank loan.
The organisation also criticised the reported plan to spend N4.2 billion on local government elections, which it said had already become subject to litigation involving members of Makinde’s own party.
SSACO’s concerns came months after the Oyo State House of Assembly approved a N200 billion bond in June to refinance existing debts.
The campaign organisation urged Makinde to exercise restraint, warning that the remaining months of his administration should not be used to create financial obligations for the next government.
“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,” the statement said.
“We, however, 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.”
On the reported N100 billion commercial bank facility, SSACO demanded clarification on its purpose, interest rate, repayment structure, collateral arrangements and the projects it would finance.
The organisation also called for full disclosure of the financial implications of the N200 billion bond approved by the House of Assembly.
It specifically requested details of the existing debts to be refinanced, interest obligations attached to them, the proposed bond’s pricing and maturity period, as well as any projected savings expected from the refinancing arrangement.
The campaign further cautioned commercial banks and other financial institutions against extending credit facilities to the Makinde administration without conducting adequate due diligence on the state’s ability to repay.
It said lenders must comply with applicable financial regulations and prudential standards when considering any loan to the state government.
“Financial institutions cannot afford to disregard prudential lending standards merely because a sitting governor is seeking credit facilities,” SSACO said, stressing that the long-term financial stability of Oyo State should take precedence over short-term commercial interests.
The campaign organisation also called on the state government to publish an updated account of Oyo State’s domestic and external debts, debt-servicing obligations, outstanding contractual liabilities and the projected fiscal position expected to confront the next administration when it assumes office in May 2027.
SSACO further urged the Oyo State House of Assembly to intensify its oversight of borrowing proposals and major expenditure approvals.
It called on lawmakers to reject any inducement and subject executive requests to rigorous scrutiny instead of treating them as routine matters.
“Let Governor Makinde be reminded that the remaining seven months of his tenure are not a license to mortgage the future of Oyo State,” the organisation said.
“The authority to govern is not an unrestricted authority to borrow, spend or burden generations yet unborn with questionable financial obligations.”
The campaign added that every borrowing and expenditure commitment by the government must be justified and subjected to public scrutiny.
“The people of Oyo State must not be presented with a mountain of debts and irreversible financial commitments on May 29, 2027,” it said.
SSACO pledged to continue demanding accountability from the government and insisted that Makinde should govern responsibly until the end of his tenure.
