By The Legits Blogger | October 24, 2026
Senator Sarafa Alli has raised concerns over Oyo State's ₦100 billion loan as the Assembly approves the facility for infrastructure and development projects.
Ibadan, Oyo State — Senator Sharafadeen Alli, the All Progressives Congress (APC) governorship candidate in Oyo State, has raised concerns over the state government's proposed ₦100 billion loan, warning that additional borrowing could place pressure on the state's finances and affect the incoming administration.
Alli, through his campaign organisation, criticised Governor Seyi Makinde's borrowing plans and called for greater transparency in the management of public funds as the current administration approaches the end of its tenure.
The development has sparked fresh debate over public borrowing, infrastructure funding and the long-term financial obligations facing Oyo State.
Why Sarafa Alli Is Questioning the Loan
In a statement issued on October 20 by Bisi Oladele, Director of Media and Publicity for the Senator Sharafadeen Alli Campaign Organisation (SSACO), the campaign expressed concern about reports that the state government was seeking a fresh ₦100 billion commercial bank loan.
The organisation argued that any new financial commitment should be supported by a clear economic justification, transparent borrowing terms and a realistic repayment plan.
It also questioned the timing of the proposed borrowing, noting that the current administration is expected to leave office in May 2027.
According to the campaign organisation, loans taken towards the end of an administration could create financial obligations that remain after a change of government.
Alli's position is that the state should carefully assess the implications of new borrowing and ensure that public funds are managed in the long-term interests of residents.
Oyo Assembly Approves ₦100 Billion Loan
Despite the concerns raised by the opposition, the Oyo State House of Assembly approved Governor Makinde's request for a ₦100 billion loan facility from United Bank for Africa (UBA) Plc on October 21, according to reports published by The Punch and The Guardian on October 22.
The state government said the facility was intended to support the completion of ongoing infrastructure projects and fund other critical development initiatives across Oyo State's 33 local government areas.
The reports also disclosed an accompanying ₦300 billion refinancing facility intended to refinance an existing contractors' finance facility obtained from Access Bank.
The Assembly's approval has intensified the political disagreement over whether the proposed borrowing is justified by the state's development needs and financial circumstances.
While the government presented infrastructure completion and development as the purpose of the loan, Alli's campaign maintained that the financial implications deserved careful scrutiny.
Alli Demands Transparency Over State Debts
Beyond the ₦100 billion loan, the campaign organisation called on the Makinde administration to publish an updated account of Oyo State's domestic and external debts, debt-servicing obligations and outstanding contractual liabilities.
It also requested more information about the existing debts covered by the proposed refinancing arrangement, including their interest obligations, maturity periods and the savings expected from the transaction.
The organisation urged the state government to make relevant financial information available to the public so residents could better understand the commitments being made on their behalf.
It further called on the Oyo State House of Assembly to exercise effective oversight over borrowing proposals and major spending decisions.
These demands form part of the opposition's wider argument that public borrowing should be accompanied by adequate disclosure and accountability.
Local Government Election Spending Also Draws Criticism
The campaign organisation also questioned a reported plan to spend approximately ₦4.2 billion on local government elections.
It raised concerns about the proposed expenditure in light of reported legal disputes surrounding the election arrangements.
The organisation argued that major spending decisions should be carefully examined to establish their necessity and financial implications.
However, the campaign's objections represent the position of a political opposition group and should not, on their own, be taken as proof of financial wrongdoing by the state government.
What the Loan Debate Means for Oyo Residents
The disagreement highlights an important public finance question: how can a state government fund infrastructure and development projects while ensuring that borrowing remains affordable over time?
Supporters of infrastructure financing may point to the importance of completing roads, healthcare facilities and other public projects. Critics, meanwhile, may seek stronger disclosure of loan terms, repayment obligations and the expected benefits of the expenditure.
For Oyo residents, the key issues include the projects expected to benefit from the loan, the cost of servicing the debt, the repayment schedule and the extent to which the borrowing will improve public services.
The answers will depend on the details of the approved facility, the government's implementation of the projects and the availability of reliable public financial records.
Conclusion
Senator Sharafadeen Alli's warning over the ₦100 billion loan has added another dimension to the political debate in Oyo State ahead of the 2027 governorship election.
Although the state House of Assembly has approved the facility, questions about borrowing terms, repayment obligations and public accountability remain central to the discussion.
As the debate continues, residents will be watching for further information from the state government about the loan's implementation, the infrastructure projects it is expected to support and its implications for Oyo State's finances.
Sources and further reading:
The Guardian: N100bn Loan: Alli warns Makinde against reckless spending
The Punch: Makinde’s N100bn loan gets Assembly nod, draws APC fire
The Guardian: Oyo Assembly approves N100b for infrastructure
The Legits Blogger will continue to follow developments concerning Oyo State's finances, governance and the 2027 election.