Oyo N100bn loan sparks row as APC threatens Makinde with probe

…Gov’s camp hits back at critics

By Adeola Badru

The Oyo State chapter of the All Progressives Congress (APC) has threatened to hold Governor Seyi Makinde accountable for any public funds allegedly misappropriated by his administration following the State House of Assembly’s approval of a fresh ₦100 billion loan.

The development came as Makinde’s camp dismissed criticism of his presidential ambition by the Senator Sharafadeen Alli Campaign Organisation (SSACO), describing it as politically motivated.

The two developments have intensified political exchanges surrounding the governor’s administration, with the opposition questioning the state’s borrowing decisions and the governor’s camp defending his national political ambitions.

In a statement issued in Ibadan on Wednesday, the APC Publicity Secretary, Olawale Sadare, described the fresh borrowing as evidence of what he called the administration’s “impunity, recklessness and insensitivity” to residents’ plight.

He warned that Makinde and his associates would be required to account for any public funds found to have been misappropriated after leaving office.

The party’s position followed the Assembly’s approval of the governor’s request for a ₦100 billion loan from United Bank for Africa (UBA) Plc to finance infrastructure projects, alongside a separate ₦300 billion arrangement to refinance an existing contractors’ loan.

The two facilities, with a combined value of ₦400 billion, were approved on Wednesday. However, the ₦300 billion component is a refinancing arrangement rather than an additional ₦300 billion in fresh borrowing.

Under the proposed refinancing, the existing contractors’ facility obtained from Access Bank at an interest rate of 26 per cent would be transferred to UBA at 22 per cent, representing a reduction of four percentage points.

The new ₦100 billion loan would also attract an interest rate of 22 per cent, subject to review in line with prevailing money market conditions.

The APC questioned the rationale for further borrowing, arguing that the state’s financial position and the administration’s spending priorities required greater scrutiny.

“A few days ago, Governor Makinde told the whole world that the administration of President Bola Tinubu was indeed paying billions of naira in monthly allocations to states and local government councils in the country, including Oyo and its 33 local government areas, but this did not translate into socio-economic relief for the citizens.

“While tongues continued to wag on what Governor Makinde had been using the stupendous wealth of the state for since 2019, he came up with another loan deal,” the party said.

The opposition also rejected the government’s explanation that the proposed borrowing was intended to refinance existing obligations and support ongoing infrastructure projects, alleging a pattern of inflated contract costs and weak compliance with due process.

“As usual, Governor Makinde quoted refinancing of existing loans and ongoing infrastructural projects as the reason for the loan request, but every reasonable individual knows that it is all fraud.

“The current administration in the state has a stinking penchant for contract cost inflation and variation, even as it commands a record of worst compliance to due process,” the APC alleged.

The party further accused the government of repeatedly seeking supplementary budget approvals despite having secured legislative approval for annual budgets, arguing that the practice raised questions about budget implementation and fiscal discipline.

“Since 2019, Oyo State treasury has been bleeding in all body parts because it is under the jackboot of wasteful spenders and kleptomaniacs.

“Governor Makinde would prepare an appropriation document and get it passed for an annual budget, only to run back to the State Lawmakers mid-year to get another nod for a supplementary budget approval, even when the original budget had not been implemented in accordance with the dictates of the law,” the statement said.

The APC also linked its concerns to recent resignations by senior officials in the Makinde administration, particularly the Director-General of the Due Process Office, suggesting that the developments could have implications for accountability after the governor’s tenure.

“The recent resignation of the Director-General of the Due Process Office, as well as the gale of resignations of top officials in the Makinde administration, is a pointer to the fact that the hen is coming home to roost after May 29, 2027.

“As a matter of fact, Engineer Makinde and his cronies shall be made to cough out every kobo of the money belonging to our dear state which they have misappropriated while in office immediately after the expiration of his final term in about seven months,” it said.

The party also warned against proceeding with the proposed December 29, 2026, local government elections, claiming that more than ₦4.2 billion belonging to the state’s 33 local government councils could be wasted on the exercise.

Makinde’s camp replies

In a separate development, Makinde’s camp dismissed allegations by SSACO that the governor was seeking to play a spoiler’s role in the presidential race, describing the accusation as baseless and politically motivated.

In a statement signed by the governor’s Special Adviser on Media, Dr Sulaimon Olanrewaju, the administration maintained that Makinde’s presidential ambition was driven by a national agenda rather than an attempt to undermine other political contenders.

“The allegation by the Senator Sharafadeen Alli Campaign Organisation (SSACO) that Governor Seyi Makinde is attempting to play a spoiler’s game is as misplaced as it is misguided.

“The claim reveals far more about SSACO’s panic than about the governor’s presidential ambition. It is an assertion without substance, crafted in haste and sustained only by a wonky imagination,” the statement said.

Olanrewaju accused the organisation of repeatedly making unfounded allegations against the governor, arguing that its criticism was aimed at distracting attention from substantive national issues.

“SSACO’s latest outburst fits into a familiar pattern of unfounded commentary aimed at distorting serious national conversations. Its fixation on Governor Makinde has become a predictable reflex, detached from facts and driven by insecurity,” he said.

The statement described Makinde, identified in it as the presidential candidate of the Allied People’s Movement (APM), as a contender seeking to offer Nigerians an alternative through a national vision of responsible leadership.

“Governor Makinde, the presidential candidate of the Allied People’s Movement (APM), is in the race to reset Nigeria and help build a country that works for all citizens.

“His candidacy is anchored in a clear national vision and a commitment to responsible leadership. His record of constructive engagement, bridge-building and issue-driven governance underscores this intention,” it said.

The governor’s camp also challenged SSACO’s claim that Makinde stood little chance against President Bola Tinubu, arguing that the organisation’s repeated attacks contradicted its assertion that his candidacy posed no electoral threat.

“If that were truly the case, why is SSACO obsessively fixated on him? If a candidate supposedly has ‘no chance’, why does SSACO attack him at every turn?” the statement asked.

“Its relentless fixation confirms two things: Governor Makinde’s strength and SSACO’s dread of that strength.”

Olanrewaju also accused the organisation of displaying similar apprehension towards Hon. Bimbo Adekanmbi, the APM governorship candidate in Oyo State, arguing that its repeated criticism of the candidate reflected political anxiety.

“The same pattern is evident in its sudden preoccupation with Hon. Bimbo Adekanmbi, the APM gubernatorial candidate in Oyo State. SSACO’s constant jabs at him do not reflect confidence; they reflect apprehension.

“Its behaviour is not that of people who feel secure; it is the behaviour of people who feel threatened,” the statement said.

Defending the governor’s national political engagements, the media aide said Makinde’s conversations with Nigerians across different regions focused on stability, competence and clarity in governance rather than political rhetoric.

“Governor Makinde’s engagement at the national level is grounded in issues, not political rhetoric. His conversations with Nigerians across regions reflect a desire for stability, competence and clarity, qualities that have defined his public service,” he said.

Olanrewaju added that the criticism would not derail the governor’s presidential campaign, insisting that the support he was attracting reflected growing acceptance of his message.

“Governor Makinde is in this race with purpose and conviction. The groundswell of support he continues to attract across the country speaks to a candidacy rooted in substance, not noise.

“And while SSACO exhausts itself manufacturing distractions, Makinde’s momentum remains untouched. Its frantic commentary cannot slow him, its contrived alarms cannot shake him, and its theatrics cannot obscure the fact that his message is gaining clarity on a daily basis,” the statement said.

Lawmakers defend borrowing

Meanwhile, the Assembly’s approval of the financing arrangements has drawn renewed attention to borrowing costs and the government’s ability to translate the funds into completed projects and measurable benefits for residents.

During deliberations, the Deputy Speaker, Muhammad Abiodun Fadeyi, and other lawmakers, including Adebayo Babajide Gabriel, Olorunpoto Cephas Rahman and Sunkanmi Babalola, defended the need for continued investment in infrastructure.

They cited the LAUTECH Teaching Hospital in Oyo, the Rashidi Ladoja Circular Road and the Ido-Eruwa Road as projects whose completion could improve healthcare delivery, strengthen transport links, stimulate commercial activities and create employment opportunities.

The lawmakers argued that completing ongoing projects would ensure that funds already committed to construction and development translated into tangible benefits rather than leaving projects unfinished after substantial expenditure.

The new ₦100 billion facility has a repayment tenor of 48 months, with a management fee of 0.25 per cent per annum and an advisory fee of 0.5 per cent annually, both calculated on the outstanding balance.

The terms also provide for a three-month moratorium on principal and interest repayments. Interest accruing during the moratorium will not be waived but will be repaid alongside the fourth, fifth and sixth instalments.

Although refinancing the existing ₦300 billion contractors’ facility at 22 per cent instead of 26 per cent could reduce financing costs, the actual savings will depend on the outstanding balance, repayment schedule and other applicable terms.

The interest rate on the new loan is also subject to review in line with prevailing market conditions.

The controversy over the borrowing comes as the Makinde administration approaches the end of its tenure, with May 29, 2027, marking the conclusion of the governor’s second term.

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