Gov. Makinde in the eyes of the storm over N500 billion loans in six years

Gov. Seyi Makinde of Oyo State is currently in the eyes of the storm, this time not on political issues but about governance, as public outcry is mounting against him over what the people of the state described as incessant loans he has taken since he assumed office six years ago.

Already, the total loans which the governor has taken were estimated at N500 billion, with most described as very outrageous. Critics further argued that this has plunged the state into a big financial mess, mortgaging the lives and the future of children in the state over the long-term repayment of such huge loans.

In the past few weeks, the government of Makinde has been under scrutiny, as it is being accused by the opposition, some stakeholders, professionals, and organised market groups of endangering the future of the state. There were also commentaries on some of the radio stations in the state where people vented their anger over the huge debt burden of the state.

Although there had not been much outcry in the past over other loans procured by Gov. Makinde’s Peoples Democratic Party (PDP) government, the two simultaneous loans within two months caught the attention of the people.

In June this year, the governor sought the approval of the State House of Assembly for a N63 billion loan to renovate the Agodi Government House, and this sparked outrage and condemnation among the people, who felt that the loan was unnecessary and regarded it as reckless and a waste of public resources and taxpayers’ money.

Secret Approval

Although the government defended and gave justifications for obtaining the loan, just as the dust was settling down, an alarm was raised by a member of the State Assembly that the government had received the approval of the Assembly to secure another N300 billion loan with no clear intention of what it would be used for.

Hon. Ibrahim Shittu, representing Saki West State Constituency, alerted that the House, during an emergency session, secretly met with just 13 members out of 32 to approve the loan.

He claimed that the two-thirds majority was not there when the loan was approved and that there was no notice of the plenary because the House was already on vacation. Shittu further stated that he was deliberately excluded from the sitting where the approval was granted, describing it as a “secret plenary.”

The revelation of Shittu ignited a firestorm and rekindled attacks on Gov. Makinde and the State House of Assembly under the speakership of Hon. Adebo Ogundoyin.

However, the State Assembly reacted and labelled Hon. Shittu an absentee member who does not attend plenary regularly, in a statement signed by the Majority Leader and the Chairman, House Committee on Information, Media, Public Affairs and ICT, Hon. Sanjo Adedoyin and Hon. Waheed Akintayo respectively.

Also, the state government denied the loan in the reaction of the Special Adviser (Media) to the governor, Mr. Sulaiman Olanrewaju, who said that the allegation of Hon. Shittu was reckless and mischievous, as there was no such fresh loan of N300 billion.

He argued that the APC lawmaker who raised the alarm was notorious for not attending sittings regularly and was desperate to mislead the public.

The statement read: “There is no N300 billion loan. What the House of Assembly approved is: N149 billion for refinancing — this means replacing an older, more expensive loan with a new facility on better terms, thereby reducing the state’s repayment burden.

“N151 billion for infrastructure investment and contractor financing — a structured arrangement that allows the government to fund ongoing and new projects while giving contractors the confidence to deliver on time.”

The government explained that the refinancing plan “is not new borrowing; it is simply responsible financial management,” while contractor financing “ensures that critical projects are completed without choking government cash flow.”

Counter Accusations

The statement also criticised the APC lawmaker, who tried to mislead the public that there has been a 500 per cent increase in FAAC allocations to Oyo State.

“Basic arithmetic would have shown him that the actual increase is about 75 per cent. By contrast, the rise in the national minimum wage from ₦30,000 to ₦80,000 represents an increase of about 170 per cent. That the lawmaker cannot distinguish between a 75 per cent increase and 500 per cent only confirms that he neither understands figures nor governance,” the government pointed out.

As the controversies over the loans were going on, Hon. Shittu, who raised the alarm, claimed that he was being threatened and that his life was no longer safe for what he did in the public interest. This, therefore, made the All Progressives Congress (APC) wade in, while their intervention resulted in a peaceful protest to warn those allegedly threatening one of their own in the State Assembly.

The protest was led by the State Chairman, Alhaji Olaide Abas, who addressed the protesters and warned the PDP administration against mortgaging the lives of the people of the state with a rising debt profile.

He emphasised that the lawmaker had been receiving threat messages as a result of the alarm he raised.

According to him: “We are here to show our support to him (lawmaker) for taking a bold step to stand against the loan. We are behind him. We are here to tell the governor that he should not send the state into perpetual loan collection.

“We are not satisfied with what is happening. We are not satisfied with the misappropriation of funds by the PDP-led administration in the state. What has the governor done with the previous loans?

“The accessing of a N300 billion loan is an attempt to further plunge the state into financial crisis.”

However, the Peoples Democratic Party (PDP) condemned the alert raised by the lawmaker, arguing that it was not in good faith but meant to discredit the good intentions of Gov. Makinde’s PDP-led administration.

State Public Relations Officer of the Party, Michael Ogunsina, who defended the governor, argued that the governor meant well in the procurement of the loan.

He said that the APC in the state is confused about governance, as members and leaders are fond of using every available chance and privilege to attack the government of Gov. Makinde with no justifiable reasons.

The PDP PRO argued: “There is nothing wrong in what the governor did in the procurement of a loan. The truth of the matter is that the state is on a positive pedestal. We are on the path to prosperity.”

Among those who backed Hon. Shittu is the former Commissioner for Education under late Governor Abiola Ajimobi and now Federal Commissioner, Federal Character Commission, Professor Adeniyi Olowofela.

He said: “It’s been six years since Ajimobi left office and five years since his passing. Governor Makinde should blame himself for his own rudderless leadership,” and warned that any successor to Makinde in 2027 would need to be an “economic wizard” to salvage the state from its current fiscal trajectory.

Meanwhile, a non-governmental association, the Concerned Youths Movement (CYM), has called on the Economic and Financial Crimes Commission (EFCC) to investigate the alleged approval of a recent N300 billion loan without the State House of Assembly forming a quorum to approve the loan for Gov. Makinde.

The approval, according to them, “is illegal, null and void, and doesn’t represent the wish of the majority of the Assembly.”

The group, in a release issued and signed by Pastor Tayo Adigun and Alhaji Olaide Kobomoje, Chairman and Secretary respectively, argued that only 13 lawmakers out of the 32 members approved the loan.

“We gathered that only 13 members of the 32-member House of Assembly approved the loan. That is illegal. Thirteen members don’t form a quorum in a 32-member House.

“Any attempt by Governor Makinde to access the N300 billion loan is not only illegal but a bastardisation of the rule of law and democracy.”