The Oyo State Government has firmly rejected allegations made by the All Progressives Congress (APC) in the state that Governor Seyi Makinde’s administration has taken a new loan of N300 billion.
The accusation was raised by Ibrahim Shittu, a lawmaker representing Saki West State Constituency, who expressed concerns over an emergency plenary session on August 19 and claimed that he had not been informed or involved in the House’s approval of the purported loan.
However, the Oyo State House of Assembly has dismissed the claim, asserting that the emergency plenary was duly announced and the approval process was legitimate.
In response, the state government issued a statement on August 28, signed by the Special Adviser (Media) to Governor Makinde, Dr. Sulaimon Olanrewaju, calling the accusation “mischievous” and “reckless,” and categorically stating that no such loan has been taken.
The statement further clarified the situation, explaining that the Oyo State House of Assembly had actually approved two financial arrangements, not a new loan.
The government outlined the approval as follows:
N149 billion for refinancing: This involves replacing a previous, high-interest loan with a more favorable financial arrangement, aimed at reducing the state’s debt burden.
N151 billion for infrastructure investment and contractor financing: This funding will ensure that critical infrastructure projects are completed on time without placing undue pressure on the state’s cash flow.
The government emphasized that refinancing is not new borrowing, but rather a prudent financial management strategy that seeks to manage existing debt more efficiently.
The contractor financing mechanism, on the other hand, ensures that ongoing and new projects are financed in a way that does not strangle the state’s finances.
“The government also took issue with Shittu’s claims, accusing him of being “notorious for not attending plenaries” and for attempting to mislead the public.”
It pointed out that his statement about a supposed 500% increase in FAAC allocations to Oyo State was also inaccurate, explaining that the actual increase was closer to 75%.”
“The government mockingly noted, “Basic arithmetic would have shown him that the actual increase is about 75%, not 500%, and this miscalculation confirms his lack of understanding of figures and governance.”
Additionally, the government compared its current achievements under Governor Makinde to the past administration, criticizing the APC for leaving Oyo State in a financially precarious state, with a poor economy, unpaid salaries, and numerous abandoned projects.
The Makinde administration, by contrast, has made tough financial decisions that have moved Oyo State out of economic distress.
Internally Generated Revenue (IGR) in the state has also increased significantly, from approximately N20 billion annually in 2018 under the APC to over N70 billion in 2025, without introducing new taxes on citizens.
The statement further noted that the funds will be used to support major infrastructure projects, including:
Phase 2 of the 110 km Rashidi Ladoja Circular Road: Opening up new economic corridors.
Upgrade of the Samuel Ladoke Akintola Airport: Aiming to position Oyo State as a hub for international investment.
Construction of more feeder roads: Connecting various regions of the state to improve local access and boost economic activity.
The government reiterated its commitment to transparent financial management, emphasizing that Governor Seyi Makinde remains dedicated to ensuring that the state becomes self-sustaining, competitive, and prosperous.
The government also made it clear that no amount of APC propaganda could alter the reality of Oyo State’s progress, stating, “Oyo State is working, Oyo State is growing, and Oyo State will not return to the dark days of APC misrule.”
