The All Progressives Congress (APC) governorship candidate in Oyo State, Senator Sharafadeen Alli, has warned Governor Seyi Makinde against embarking on reckless spending, indiscriminate borrowing and accumulation of fresh financial burden on the state in the closing months of Allied People’s Movement (APM)’s administration.
Alli, through his campaign organisation, cautioned that financial decisions taken at the twilight of the current government must not mortgage the future of Oyo State or impose avoidable debt burdens on the incoming administrations and generations yet unborn.
A statement signed by Bisi Oladele, Director of Media and Publicity for Alli’s Campaign Organisation on Tuesday, expressed serious concern over reports that the Makinde administration is about to initiate the process to obtain another N100 billion loan from a commercial bank, and also waste N4.2 billion on local government election that is already litigated by members of his own party.
Coming against the backdrop of the approval by the state House of Assembly of a N200 billion bond in June this year to refinance existing debts, the campaign organisation charged Makinde not to behave like a drunken sailor by exposing the state to needless financial burden.
“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 limit must not become an opportunity for reckless expenditure, questionable borrowing or the creation of financial liabilities that could constrain future governments.
“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, the campaign organisation demanded a comprehensive disclosure of the existing debts proposed for refinancing, the interest obligations attached to those debts, the proposed bond’s pricing, maturity period and the projected savings, if any, to the state.
Consequently, the Senator Sharafadeen Alli Campaign Organisation (SSACO) cautioned commercial banks and other financial institutions against granting loans to the Makinde administration without rigorous due diligence, proper assessment of the state’s repayment capacity and strict compliance with applicable financial regulations.
“We warn that any financial institution that lends recklessly or on unreasonable terms to the Makinde administration should be prepared to answer serious questions about its lending decisions and bear responsibility for any breaches of applicable laws and regulations.
“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 statement further urged the Makinde administration to publish an updated statement of Oyo State’s domestic and external debt obligations, debt-servicing commitments, outstanding contractual liabilities and the projected fiscal position that will confront the next administration in May 2027.
The SSACO called on the Oyo State House of Assembly to reject inducement, exercise rigorous oversight of all borrowing proposals and significant expenditure approvals, rather than treating executive requests 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 authority to govern is not an unrestricted authority to borrow, spend or burden generations yet unborn with questionable financial obligations.
“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 people of Oyo State must not be presented with a mountain of debts and irreversible financial commitments on May 29, 2027. We will continue to demand accountability and insist on compliance with the law. Governor Makinde must govern responsibly until his last day in office, because public office is a sacred trust, not a blank cheque to spend and borrow without restraint,” the statement concluded.