From Taiwo Oluwadare, Ibadan
The All Progressives Congress (APC) governorship candidate in Oyo State, Senator Sharafadeen Alli, has cautioned Governor Seyi Makinde against what he described as reckless spending and indiscriminate borrowing in the remaining months of his administration.
Alli, through the Senator Sharafadeen Alli Campaign Organisation (SSACO), warned that financial decisions taken towards the end of the current administration must not mortgage the future of the state or impose avoidable debt burdens on the incoming government and generations yet unborn.
In a statement signed by Bisi Oladele, Director of Media and Publicity of the campaign organisation, on Tuesday, SSACO expressed concern over reports that the Makinde administration was considering a fresh N100 billion loan from a commercial bank.
The organisation also questioned the proposed expenditure of N4.2 billion on local government elections, which it said were already subject to litigation involving members of the governor’s party.
The campaign organisation’s concerns come amid the approval of a N200 billion bond by the Oyo State House of Assembly in June to refinance existing debts.
SSACO urged the governor to exercise restraint in committing the state to additional financial obligations, particularly as his tenure approaches its end.
The statement acknowledged that Makinde still had about seven months before the expiration of his tenure and retained the constitutional authority to administer the state within the limits of the law.
It, however, warned that the remaining period must not become an opportunity for questionable borrowing, excessive expenditure or the creation of liabilities capable of constraining future administrations.
“The reported N100 billion commercial bank facility raises fundamental questions about its justification given commercial banks’ high interest rate, purpose, repayment structure, collateral arrangements and the projects it is intended to finance,” the statement said.
On the N200 billion bond approval, SSACO demanded full disclosure of the existing debts to be refinanced, their interest obligations, the proposed bond’s pricing and maturity period, as well as the projected savings expected from the transaction.
The organisation also cautioned commercial banks and other financial institutions against granting credit facilities to the Makinde administration without conducting rigorous due diligence and assessing the state’s capacity to repay.
It maintained that lenders must comply strictly with applicable financial regulations and prudential lending standards, regardless of the status of the public officials seeking the facilities.
“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,” the statement added.
The campaign organisation further called on the state government to publish an updated account of Oyo State’s domestic and external debts, debt-servicing commitments, outstanding contractual liabilities and projected fiscal position ahead of the next administration’s inauguration in May 2027.
It also urged the Oyo State House of Assembly to exercise stronger oversight over borrowing proposals and major expenditure approvals, warning lawmakers against treating executive requests as routine matters.
SSACO insisted that every financial commitment made by the outgoing administration must be justified and subjected to public scrutiny.
“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.
The organisation added that residents must not be confronted with mounting debts and irreversible financial commitments when the current administration leaves office on May 29, 2027.
It pledged to continue demanding accountability and compliance with financial regulations, urging Makinde to govern responsibly until the final day of his tenure.
“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 concluded.
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