A public affairs analyst Adebisi Adeyemo has raised concerns that Governor Seyi Makinde could leave Oyo State with substantial debt obligations that could constrain the finances of successive administrations after his exit in May 2027.
Adeyemo warned that repayment commitments from the state government’s reported ?400 billion borrowing and refinancing arrangements could extend beyond Makinde’s tenure potentially limiting future administrations’ capacity to provide essential public services.
He consequently challenged the governor to disclose the terms of the arrangements including repayment schedules interest rates and the projects to be financed within 24 hours.
His concerns followed the reported approval by the Oyo State House of Assembly on October 21 of a fresh ?100 billion loan from United Bank for Africa (UBA) and a ?300 billion facility to refinance an existing contractors’ financing arrangement with Access Bank.
According to him although the ?300 billion facility represents refinancing rather than entirely new borrowing the financial implications require public scrutiny particularly as the arrangement reportedly reduces the interest rate from 26 per cent to 22 per cent.
He noted that the fresh ?100 billion facility reportedly attracts a reviewable interest rate of 22 per cent with a repayment period of 48 months extending beyond the lifespan of the present administration.
Adeyemo maintained that while government borrowing for critical infrastructure including roads schools and hospitals could be justified residents must be adequately informed about the costs and expected benefits.
He questioned whether the state would inherit completed projects that could justify the commitments or outstanding liabilities that could undermine future development priorities.
The analyst therefore urged Makinde the state Ministry of Finance the Debt Management Office and the House of Assembly to publish the complete loan and refinancing agreements associated charges repayment schedules security arrangements and guarantees.
He also demanded the state’s current debt profile projected annual debt-servicing costs details of projects earmarked for the fresh ?100 billion loan cost-benefit assessments debt sustainability analysis and legislative approval documents.
Adeyemo challenged the House of Assembly to explain the financial scrutiny undertaken before approving the arrangements insisting that legislative oversight must extend beyond endorsing executive borrowing requests.
He clarified however that his 24-hour deadline was a public accountability challenge not a statutory requirement.
The analyst added that any contractual information considered confidential should include an explanation of the legal grounds for withholding it while other relevant documents should be made publicly accessible.
Citing Section 14(2) of the 1999 Constitution as amended and Section 22 of the Freedom of Information Act 2011 Adeyemo maintained that transparency and public welfare must guide decisions involving government resources.
He stressed that his intervention was neither an allegation of financial misconduct nor an expression of political hostility arguing that supporters and critics of the administration had a legitimate interest in understanding the state’s financial commitments.
‘Governor Makinde will leave office but Oyo State will remain. Political tenures expire; public financial obligations may not’ he said.
Adeyemo urged the government to provide documented explanations of the borrowing arrangements and their implications beyond 2027 stressing that residents deserved to know how long the state would service the obligations and their potential impact on future generations.