Oyo State Government Refutes Allegations of N300 Billion Loan, Clarifies Financial Strategy
Ibadan, Nigeria – The Oyo State Government has vehemently denied claims by the All Progressives Congress (APC) that Governor Seyi Makinde’s administration has secured a new loan of N300 billion. The government, in a statement released on Friday, August 28th, characterized the APC’s assertion as “mischievous” and “reckless,” emphasizing that no such loan has been acquired.
The controversy ignited when Mr. Ibrahim Shittu, a lawmaker representing Saki West State Constituency, expressed concerns about a purported N300 billion loan, alleging he was neither informed of an August 19th emergency plenary nor involved in the House’s approval of the loan. However, the Oyo State House of Assembly swiftly refuted Mr. Shittu’s claim.
Clarifying the financial arrangements, the government’s statement outlined two key components: N149 billion designated for refinancing existing loans and N151 billion allocated for infrastructure investment and contractor financing. The government stressed that the refinancing plan does not constitute new borrowing but rather represents a strategic move to replace older, high-interest loans with a new facility offering more favorable terms. This, they explain, will reduce the state’s debt repayment burden. The remaining N151 billion, according to the statement, will be utilized for crucial infrastructure projects and to provide timely payments to contractors, ensuring the efficient completion of ongoing and new development initiatives.
The government further defended its financial strategy, arguing that contractor financing ensures critical projects progress without straining the state’s cash flow. They emphasized the importance of these projects in driving economic growth and improving the lives of Oyo State residents. The statement also took aim at the APC lawmaker who initially raised the loan allegations, accusing him of frequently missing plenary sessions and misrepresenting the state’s financial figures. Specifically, the government disputed the lawmaker’s claim of a 500% increase in federal allocations to Oyo State, asserting the actual increase was closer to 75%. They contrasted this with the 170% increase in the national minimum wage, highlighting what they deemed the lawmaker’s lack of understanding of financial matters and governance.
In its defense, the Oyo State Government drew a sharp contrast between its financial management and that of the previous APC administration. The statement accused the APC of leaving Oyo State as a “civil service state” burdened by a stagnant economy, unpaid salaries, abandoned projects, and mounting debts during their eight years in power. Conversely, the Makinde administration highlighted its “tough but strategic financial decisions” that they credit with pulling Oyo State out of economic difficulty. They pointed to a significant increase in Internally Generated Revenue (IGR), claiming it has risen from N20 billion annually in 2018 under the APC to over N70 billion in 2025, without imposing additional tax burdens on citizens.
The government further elaborated on the intended use of the funds, outlining key projects such as Phase 2 of the 110 km Rashidi Ladoja Circular Road, aimed at creating new economic corridors; the completion of the Samuel Ladoke Akintola Airport upgrade, designed to attract international investment; and the construction of more feeder roads across all zones of the state. These investments, they argued, demonstrate the administration’s commitment to developing critical infrastructure and propelling economic growth.
Reiterating its commitment to transparency and responsible financial management, the Makinde administration dismissed the APC’s allegations as mere propaganda. The government maintained that its focus remains on making Oyo State self-sustaining, competitive, and prosperous, emphasizing its determination not to revert to what they characterized as the “dark days of APC misrule.” The statement concluded by expressing confidence in the state’s positive trajectory under the current administration.
