Makinde administration refutes APC’s ₦300 billion loan allegation, claims opposition misrepresenting facts

By Matthew Ogunwale

The Oyo State Government has dismissed claims from the All Progressives Congress (APC) that Governor Seyi Makinde’s administration has taken on a new ₦300 billion loan, labelling the allegation as “falsehood born out of ignorance and absentee lawmaking.”

In a statement released on Thursday by Dr. Sulaimon Olanrewaju, Special Adviser on Media to the Governor, the government clarified that what was approved by the Oyo State House of Assembly was a structured financing arrangement totalling ₦300 billion, ₦149 billion for loan refinancing and ₦151 billion for infrastructure development and contractor financing.

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According to the statement, refinancing does not constitute new borrowing; rather, it involves replacing older, more expensive loans with financial facilities on better terms to reduce repayment burdens. The contractor financing aspect allows the state to fund projects without straining its cash flow, giving contractors the confidence to deliver on time.

“It is misleading for the APC to inform the public that Governor Makinde is plunging Oyo into new debt. What has been approved is responsible financial management designed to strengthen ongoing projects and accelerate growth,” Olanrewaju stated.

The government also criticised the APC lawmaker who initially raised the allegation, accusing him of being “notorious for absenteeism in plenary sessions” and lacking a basic understanding of financial principles.

As an example, the statement noted that while the lawmaker claimed there was a 500 per cent increase in Oyo State’s allocation from the Federation Account (FAAC), the actual figure is closer to 75 per cent. Additionally, the increase in the national minimum wage from ₦30,000 to ₦80,000, a 170 per cent rise, exposes the lawmaker’s calculation errors.

The government contrasted the Makinde administration’s record with that of the APC, which it accused of having left behind an economy characterised by a civil service state, unpaid salaries, abandoned projects, and overwhelming debts after eight years in power.

“Governor Makinde’s strategic decisions have grown Oyo’s Internally Generated Revenue (IGR) from about ₦20 billion in 2018 under the APC to over ₦70 billion in 2025, without placing an additional tax burden on citizens,” the statement read.

The new financing plan, according to the government, will support legacy projects, including the second phase of the 110 km Rashidi Ladoja Circular Road, the completion of the upgrade to Samuel Ladoke Akintola Airport to attract international investment, and the construction of feeder roads across all zones of Oyo State.

Describing the APC’s criticism as “laughable,” the statement asserted that international partners such as the World Bank have commended Oyo State’s fiscal prudence.

“Governor Makinde remains committed to transparent financial management and investments that will make Oyo State self-sustaining, competitive, and prosperous. No amount of APC propaganda can erase the truth: Oyo State is working, Oyo State is growing, and Oyo State will not return to the dark days of APC misrule,” Olanrewaju declared.