The All Progressives Congress (APC) in Oyo State has criticised Governor Seyi Makinde over the approval of a fresh ₦100 billion loan for his administration, describing the decision as reckless and insensitive to residents’ economic concerns.
The party argued that the additional borrowing raised questions about the state government’s financial priorities, particularly as public spending and the management of local government resources remain subjects of political debate.
The controversy followed the Oyo State House of Assembly’s approval of a ₦100 billion loan facility from United Bank for Africa (UBA) Plc to support infrastructure projects and other development initiatives.
The state government also proposed a separate ₦300 billion facility to refinance an existing contractors’ finance arrangement with Access Bank. The refinancing is distinct from the fresh ₦100 billion borrowing and should not be interpreted as an additional ₦300 billion in new spending.
In a statement issued in Ibadan, the Oyo APC, through its Publicity Secretary, Olawale Sadare, accused the administration of failing to demonstrate sufficient restraint in its financial decisions.
The party also warned Makinde against proceeding with plans to spend more than ₦4.2 billion from funds belonging to the state’s 33 local government councils on the proposed council election scheduled for December 29, 2026.
The allegations have intensified political exchanges between the ruling party in the state and the opposition, with questions about borrowing, public expenditure and local government finances emerging as key points of contention.
However, criticism of the loan does not by itself establish that the borrowing is unlawful or that the funds will be misused. Those questions depend on the applicable legal framework, the loan terms, the projects financed and the government’s financial records.
The debate is likely to continue as residents and political stakeholders demand clarity on the state’s debt obligations, the expected benefits of the proposed spending and the safeguards in place to ensure accountability.