The Senator Sharafadeen Alli Campaign Organisation (SSACO) has condemned the approval of a fresh N100 billion loan for the Oyo State Government, accusing Governor Seyi Makinde of embarking on reckless borrowing and using public finances to advance his political interests.
SSACO, in a statement by its Director of Media and Publicity, Bisi Oladele, described the loan as an alarming demonstration of fiscal irresponsibility and political desperation, warning that the borrowing could saddle the incoming administration with avoidable financial obligations.
The Oyo State House of Assembly approved the N100 billion facility from United Bank for Africa (UBA) Plc on Wednesday, following a request by the governor.
According to Makinde, the facility is intended to fund critical infrastructure projects and accelerate the completion of ongoing projects across the state.
The Assembly also approved a separate N300 billion refinancing arrangement through UBA for an existing contractors’ finance facility obtained from Access Bank.
Unlike the N100 billion facility, the N300 billion is a refinancing of an existing obligation, with the interest rate expected to drop from 26 per cent to 22 per cent.
SSACO, however, questioned the timing and justification for the fresh borrowing, particularly with Makinde’s tenure expected to end in May 2027.
According to the organisation, the speed with which the Assembly approved the facility suggested that lawmakers had failed to subject the proposal to adequate scrutiny.
“There is no doubt that the proposed borrowing was not driven by any genuine developmental consideration but by a desperate political agenda to finance the 2027 elections and sustain Governor Makinde’s increasingly uncertain political ambition,” SSACO said.
It alleged that Makinde was attempting to mortgage the state’s financial future to sustain his political structure and succession plans, arguing that the governor should instead concentrate on completing his tenure responsibly and handing over a financially viable state.
SSACO further questioned the economic wisdom of taking a fresh N100 billion loan at a time when the state already has substantial financial obligations and the administration has only about seven months left in office.
The approved N100 billion facility carries an interest rate of 22 per cent, subject to review in line with prevailing market conditions, with a 48-month repayment tenor.
It also attracts a 0.25 per cent annual management fee and a 0.5 per cent advisory fee on the outstanding balance.
SSACO said the Oyo State House of Assembly should not merely provide legislative approval for executive borrowing but must demonstrate independence and ensure that such decisions are in the public interest.
“Approval by the legislature does not automatically confer economic wisdom, transparency or public interest on a borrowing decision,” the organisation said.
The campaign organisation also warned prospective lenders that any financial commitments entered into by the outgoing administration could be subjected to comprehensive scrutiny by the next government.
It said the All Progressives Congress (APC) would resist any attempt to turn public borrowing into a political war chest, insisting that the state’s resources and creditworthiness should not be treated as the property of an individual governor or political party.
Similarly, the APC in Oyo State has criticised the loan approval, with its Publicity Secretary, Olawale Sadare, describing the development as another demonstration of impunity, recklessness and insensitivity to residents.
The party questioned the justification for the borrowing, alleging that the Makinde administration had a record of contract variations, inflated project costs and poor compliance with due process.
APC also warned Makinde against spending more than N4.2 billion belonging to the state’s 33 local government councils on the proposed December 29, 2026 council elections, describing the planned expenditure as wasteful.
The party further alleged that the state government had repeatedly returned to the Assembly for supplementary budget approvals despite concerns over implementation of earlier appropriations.
It also linked the recent resignation of the Director-General of the Due Process Office and the departure of other senior officials to what it described as growing problems within the administration.
APC warned that Makinde and his associates would be held accountable for any alleged financial mismanagement after the expiration of his tenure.
SSACO, meanwhile, maintained that no amount of borrowing could determine the outcome of the 2027 elections, insisting that the people of Oyo State would decide their next governor through the ballot.
“He cannot borrow his way into the presidency, neither can he borrow his preferred candidate into the Government House in Agodi,” the organisation said.
The campaign body urged Makinde to halt what it described as a borrowing spree and ensure that Oyo State remains financially sustainable when he leaves office.
It said the state was “bigger than Governor Makinde” and his political ambitions, warning that debts incurred by the current administration could burden residents and future governments long after the governor leaves office.
The Assembly, for its part, has defended the financing arrangement, arguing that continued investment in infrastructure is necessary to complete major projects and promote economic growth.
Lawmakers cited projects including the LAUTECH Teaching Hospital in Oyo, Rashidi Ladoja Circular Road and Ido-Eruwa Road as initiatives whose completion could improve connectivity, create jobs and stimulate commercial activity.
