The Oyo State Government has vehemently refuted allegations by the All Progressives Congress (APC) that Governor Seyi Makinde’s administration has incurred a new N300 billion loan. The controversy erupted following concerns raised by Mr. Ibrahim Shittu, a lawmaker representing Saki West State Constituency, who claimed he was neither informed about an emergency plenary session held on August 19th nor involved in the House’s approval of the alleged loan. The Oyo State House of Assembly, however, denied Shittu’s claims. The state government, in a statement released on August 28th, categorized the APC’s accusations as “mischievous” and “reckless,” emphasizing that no such loan had been taken. Instead, the government clarified that the House of Assembly approved two distinct financial measures: N149 billion for refinancing existing loans and N151 billion for infrastructure investment and contractor financing.
The N149 billion earmarked for refinancing aims to replace older, higher-interest loans with a new facility offering more favorable terms. This strategic move will effectively reduce the state’s debt repayment burden without increasing the overall debt. The government underscored that this is not new borrowing but a prudent financial management practice aimed at optimizing the state’s debt portfolio. The remaining N151 billion is allocated to infrastructure development and a structured contractor financing arrangement. This approach ensures continuous funding for ongoing and new projects while providing contractors with the necessary financial security to complete projects efficiently and on schedule. This financing mechanism allows the government to invest in critical infrastructure without straining its immediate cash flow.
The government criticized Mr. Shittu, accusing him of frequently absenting himself from plenary sessions and deliberately misrepresenting facts to mislead the public. Specifically, the government challenged Shittu’s claim of a 500% increase in federal allocations to Oyo State, asserting that the actual increase is closer to 75%. The government further pointed out the significant 170% increase in the national minimum wage – from N30,000 to N80,000 – to highlight the disparity in Shittu’s figures and question his grasp of financial matters and governance. The administration juxtaposed its financial record with that of the previous APC government, accusing the latter of leaving the state in a dire financial situation.
The Makinde administration contrasted its approach with the previous APC government’s eight years in power, accusing it of leaving the state in a precarious financial position, burdened by unpaid salaries, abandoned projects, and a stagnant economy. The statement attributed this to the APC’s mismanagement and over-reliance on the civil service, creating a “civil service state” with a crippled economy. In contrast, the current administration emphasized its strategic financial decisions that have lifted the state out of its financial predicament. The government highlighted its success in growing the Internally Generated Revenue (IGR) from N20 billion in 2018 under the APC to over N70 billion in 2025, achieved, it claimed, without imposing new taxes on the citizenry. This achievement, according to the government, demonstrates its commitment to fiscal responsibility and sustainable economic growth.
The newly approved financing is intended to support key projects like the second phase of the 110km Rashidi Ladoja Circular Road, which aims to open up new economic corridors within the state. The funds will also contribute to the completion of the Samuel Ladoke Akintola Airport upgrade, positioning Oyo State for increased international investment. Additionally, the financing will support the construction of feeder roads across all zones of the state, enhancing connectivity and boosting economic activity in rural areas. These investments underscore the government’s commitment to comprehensive infrastructure development across the state.
The Oyo State Government reiterated its commitment to transparency in financial management and strategic investments that will promote self-sufficiency, competitiveness, and prosperity within the state. The statement concluded with a firm declaration that the ongoing progress in Oyo State under the current administration cannot be erased by what it termed “APC propaganda,” expressing confidence that the state will not revert to what it described as the “dark days of APC misrule.” The statement underscores the government’s dedication to ensuring the continued development and prosperity of Oyo State. The government maintains that the current financial strategies are not only sound but also essential for the state’s economic advancement.
