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, indiscriminate borrowing and the accumulation of fresh financial obligations in the closing months of his administration, warning that such decisions could undermine the state’s fiscal stability and impose avoidable burdens on future governments.
Alli, through the Senator Sharafadeen Alli Campaign Organisation (SSACO), expressed concern over the reported plan by the Makinde administration to initiate the process of securing an additional N100 billion loan from a commercial bank, alongside the proposed expenditure of N4.2 billion on local government elections that have reportedly become the subject of litigation involving members of the governor’s own party.
In a statement issued on Tuesday and signed by Bisi Oladele, Director of Media and Publicity for the campaign organisation, the group maintained that financial decisions taken towards the end of an administration must be guided by prudence, transparency and a demonstrable commitment to the long-term interests of the people of Oyo State.
The campaign organisation’s concerns come against the backdrop of the Oyo State House of Assembly’s approval of a N200 billion bond in June 2026, reportedly intended to refinance existing debts. SSACO argued that the combination of an already approved bond, a proposed commercial bank facility and other significant expenditure commitments warranted closer public scrutiny to establish their implications for the state’s finances.
While acknowledging that Makinde retains the constitutional authority to administer the state until the expiration of his tenure, the organisation warned that the remaining months of his administration must not become an avenue for committing public resources to questionable projects or creating financial obligations that could constrain 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.”
Focusing on the reported N100 billion commercial bank facility, SSACO questioned the economic justification for the proposed borrowing, particularly in view of the potentially high interest rates associated with commercial lending. It demanded clarity on the facility’s intended purpose, repayment arrangements, applicable interest rates, collateral requirements and the specific projects or obligations it would finance.
According to the organisation, any additional borrowing by the state must be supported by a clearly established public purpose, a sustainable repayment plan and sufficient evidence that the expected benefits outweigh the financial costs. It maintained that the absence of adequate disclosure could fuel public concerns about the management of the state’s resources during the transition to a new administration.
The campaign organisation also called for comprehensive disclosure of the N200 billion bond approved by the state legislature, insisting that the government should provide details of the existing debts earmarked for refinancing, their respective interest obligations, the proposed bond’s pricing and maturity period, as well as the projected savings expected from the transaction.
SSACO argued that refinancing existing debts could be justified where it demonstrably reduces borrowing costs or improves the state’s debt profile. However, it stressed that such an arrangement must be assessed on the strength of verifiable financial information rather than broad assurances, adding that residents deserve to understand the immediate and long-term implications of major borrowing decisions.
The organisation subsequently cautioned commercial banks and other financial institutions against approving credit facilities for the state without conducting rigorous due diligence, assessing its repayment capacity and ensuring 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,” the statement added.
It further maintained that financial institutions must not compromise established lending standards in response to requests from a sitting governor, stressing that the protection of public funds and the long-term financial sustainability of Oyo State should take precedence over short-term commercial interests.
Beyond the immediate borrowing concerns, the campaign organisation called on the Makinde administration to publish an updated and comprehensive account of the state’s domestic and external debt obligations, debt-servicing commitments, outstanding contractual liabilities and projected fiscal position ahead of the inauguration of a new administration on May 29, 2027.
According to SSACO, such disclosure would provide residents with a clearer understanding of the financial commitments inherited by the incoming government and help establish a foundation for responsible fiscal planning. It also argued that transparency over outstanding liabilities would strengthen public confidence in the management of the state’s finances and reduce uncertainty surrounding future spending priorities.
The group equally called on the Oyo State House of Assembly to intensify its oversight of borrowing proposals and major expenditure approvals, urging lawmakers to scrutinise executive requests thoroughly rather than treating them as routine legislative business. It insisted that legislative independence and accountability were essential safeguards against decisions capable of undermining the state’s financial position.
On the proposed N4.2 billion expenditure for local government elections, SSACO questioned the justification for committing such a substantial amount of public money to an exercise reportedly facing litigation involving members of the governor’s party. It maintained that the legal and financial implications of the process deserved careful consideration, alongside the need to ensure that public funds were deployed transparently and in accordance with the law.
Reiterating its position, the campaign organisation warned that the final months of the current administration must be characterised by fiscal discipline, accountability and respect for public interest rather than decisions that could saddle the state with avoidable financial pressure.
“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 declared.
It added that every borrowing decision must be justified, every expenditure subjected to public scrutiny and every financial commitment evaluated against the enduring interests of the 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,” the statement concluded.
The organisation urged Makinde to maintain responsible financial management until the final day of his tenure, emphasising that the administration’s legacy would be judged not only by its projects and policies but also by the sustainability of its financial decisions and the obligations left behind for future governments.
