As the administration of Governor Seyi Makinde enters its final seven months, concerns are being raised in several quarters over reports of a fresh move by the Oyo State Government to borrow a whopping N100 billion from the United Bank for Africa (UBA), a highly reputable financial institution in Nigeria.
For many stakeholders in Oyo State, this is a time for caution, due diligence and patriotism, not a time for hasty approvals.
UBA, as a reputable bank with strong corporate governance standards, is expected to subject such huge lending requests to thorough risk assessment, as the tenure of the present administration winding down slowly. Lending N100billion to a government with less than seven months left raises legitimate questions about purpose, repayment plan, sustainability and public interest.
The second concern is the role of the Oyo State House of Assembly. The Assembly, as the representatives of the people from 32 state constituencies, must not allow itself to be induced or pressured into giving fast lane approval for another loan that will ultimately become a burden on the citizens of Oyo State.
Public finance analysts have argued that previous loans obtained by the state government have not been matched with commensurate visible projects or clear public accountability. This has fueled public anxiety that the state is accumulating debts without sufficient transparency on utilization and repayment.
There are also political concerns among observers who allege that the timing of the loan is suspicious, coming at a time when political activities towards 2027 intensify. Some critics alleged that the loan could be linked to funding political ambitions and bankrolling political associates, including Hon. Bimbo Adekanmbi, governorship candidate of the APM. These remain allegations in the public domain, but they underscore why transparency is critical.
What the people of Oyo State are asking for is simple:
UBA must do proper due diligence and ensure that any loan to Oyo State meets all regulatory, judiciary and public interest tests.
The Oyo State House of Assembly must subject the request to rigorous public scrutiny, debate, and if necessary, a public hearing.
The Makinde administration must give a detailed account of all previous loans, how they were spent, and a clear, convincing repayment plan for new loan.
Oyo State cannot afford to be plunged into a deeper debt crisis on the eve of a new administration. Borrowing for genuine development is not bad, but borrowing without accountability and with less than seven months to exit is a disservice to the good people of Oyo State.
BSA VOICE OF REASON MEDIA & RHAIN COORDINATOR
