APC Threatens to Probe Makinde Over Fresh N100bn Loan

The All Progressives Congress (APC) in Oyo State has criticised Governor Seyi Makinde over the approval of a fresh ₦100 billion loan, accusing his administration of reckless spending and warning that he and his associates would be held accountable for any public funds misappropriated during his tenure.

The Speaker of the Oyo State House of Assembly, Debo Ogundoyin, read a letter from Makinde seeking approval to obtain the loan from a commercial bank on Monday. The request was subsequently approved despite objections from opposition parties.

In a statement issued in Ibadan, the state APC, through its Publicity Secretary, Olawale Sadare, also warned the governor against plans to spend more than ₦4.2 billion belonging to the state’s 33 local government councils on the proposed December 29, 2026 council election.

The party recalled Makinde’s comments that the Federal Government under President Bola Tinubu was paying billions of naira in monthly allocations to states and local governments, including Oyo State and its 33 councils. It argued that the allocations had not translated into adequate socio-economic relief for residents.

The APC questioned how the state’s resources had been managed since Makinde assumed office in 2019, dismissing the governor’s explanation that the new loan would fund infrastructure projects and refinance existing debts.

It accused the administration of inflating contract costs, varying contracts and failing to comply with due process. The party also alleged that the government frequently sought approval for supplementary budgets before fully implementing existing appropriations in line with the law.

The APC further linked the recent resignation of the Director-General of the state’s Due Process Office and the departure of other senior officials to what it described as growing problems within the administration.

It warned that Makinde and his associates would be required to account for any state funds found to have been misappropriated after his tenure ends on May 29, 2027.

Meanwhile, the Oyo State House of Assembly has defended its approval of the ₦100 billion facility, describing criticism of the decision as politically motivated and based on a misunderstanding of the state’s financial arrangements.

The lawmakers said the ₦100 billion facility from United Bank for Africa (UBA) Plc would provide additional funding for critical infrastructure projects. They explained that a separate ₦300 billion facility would allow the government to refinance an existing contractors’ finance arrangement with Access Bank at a lower interest rate.

Gbenga Oyekola, who represents Atiba State Constituency, said concerns that Makinde was leaving an excessive financial burden for the incoming administration overlooked the purpose of the borrowing arrangements.

He explained that the existing ₦300 billion facility attracted an interest rate of 26 per cent under Access Bank, while UBA had offered to take over the facility at 22 per cent, reducing the rate by four percentage points.

According to Oyekola, the refinancing arrangement should be considered alongside the state’s infrastructure requirements, while the additional ₦100 billion would support ongoing development projects rather than simply increase existing debt.

He argued that the two facilities should be viewed as shared financial responsibilities rather than as a burden created solely for the incoming administration.

The lawmaker acknowledged the government’s infrastructure efforts but raised concerns about the politicisation of development projects, particularly the Rashidi Ladoja Circular Road, whose cost he described as substantial. He said assessments of infrastructure spending should consider project costs, expected benefits and whether communities across the state were receiving their fair share of investment.

Also defending the loan approval, Deputy Majority Leader of the House and Chairman of the Committee on Appropriation, Finance and State Economic Planning, Sunkanmi Babalola, urged critics to seek clarification before commenting on matters they might not fully understand.

Babalola said refinancing the existing ₦300 billion facility at 22 per cent instead of 26 per cent could reduce borrowing costs and release funds for other development priorities.

He noted that the four-percentage-point reduction could generate substantial savings, which the government could redirect towards programmes benefiting residents.

The lawmaker added that the executive returned to the Assembly for approval after securing the improved refinancing offer, describing the process as evidence of respect for legislative procedures and democratic governance.

He also rejected concerns that the additional ₦100 billion would be spent on recurrent expenditure, insisting that the facility was intended for critical capital projects across Oyo State.

Projects cited by the lawmakers include the Ladoke Akintola University of Technology (LAUTECH) Teaching Hospital in Oyo town, the Rashidi Ladoja Circular Road and the Ido–Eruwa Road, alongside other road and healthcare infrastructure projects.

Babalola also mentioned the Gintola International Airport project in Ibarapa, saying the government remained committed to completing it before Makinde leaves office in 2027.

He maintained that adequate funding was necessary to complete ongoing projects, improve connectivity, expand access to public services and ensure that communities outside Ibadan benefited from government investment.