The All Progressives Congress (APC) governorship candidate in Oyo State, Senator Sharafadeen Alli, on Tuesday warned Governor Seyi Makinde against reckless spending and indiscriminate borrowing in the final months of his administration.

Alli, through his campaign organisation, said financial decisions taken towards the end of the current administration must not mortgage the future of the state or impose avoidable debt burdens on the incoming government and generations yet unborn.

The warning followed reports that the Makinde administration was considering a fresh N100 billion loan from a commercial bank, as well as plans to spend N4.2 billion on local government elections that are reportedly being challenged in court by members of the governor’s party.

In a statement issued by the Director of Media and Publicity of the Senator Sharafadeen Alli Campaign Organisation (SSACO), Bisi Oladele, expressed concern over the reported loan, particularly against the backdrop of the Oyo State House of Assembly’s approval of a N200 billion bond in June to refinance existing debts.

The campaign organisation urged Makinde to exercise restraint and ensure that any fresh borrowing was supported by clear economic justification, transparent terms and a credible repayment plan.

It acknowledged that the governor retained the constitutional authority to administer the state until the expiration of his tenure but warned against using the remaining months to accumulate financial liabilities that could constrain the next administration.

“We, however, warn that the remaining months of his term limit must not become an opportunity for reckless expenditure, questionable borrowing or the creation of financial liabilities that could constrain future governments,” the statement said.

SSACO said the reported N100 billion commercial bank facility raised questions about its necessity, purpose, repayment structure, collateral arrangements and the projects it was intended to finance, particularly given prevailing commercial lending rates.

The organisation also demanded full disclosure of the debts the proposed N200 billion bond was intended to refinance, the interest obligations attached to them, the bond’s pricing and maturity period, and the savings expected from the transaction.

It further cautioned commercial banks and other financial institutions against granting credit facilities to the state government without conducting thorough due diligence and assessing its capacity to repay.

“We warn that any financial institution that lends recklessly or on unreasonable terms to the Makinde administration should be prepared to answer serious questions about its lending decisions and bear responsibility for any breaches of applicable laws and regulations,” the statement added.

The campaign organisation maintained that financial institutions must adhere to prudential lending standards and prioritise the protection of public funds and the long-term financial stability of the state over short-term commercial interests.

It also urged the state government to publish an updated account of Oyo State’s domestic and external debts, debt-servicing obligations, outstanding contractual liabilities and projected fiscal position ahead of the inauguration of a new administration in May 2027.

SSACO called on the state House of Assembly to exercise rigorous oversight over borrowing proposals and major expenditure approvals, rather than treating requests from the executive as routine matters.

The organisation warned that the state should not be left with unsustainable debts and long-term financial commitments when the next administration assumes office.

“Every kobo borrowed today must be justified, every expenditure must withstand public scrutiny, and every financial commitment must serve the enduring interests of our people,” the statement said.

It added that the governor must remain accountable and govern responsibly until the end of his tenure, stressing that public office should not be treated as an unrestricted mandate to borrow and spend public funds.