Tensions over Oyo State's fiscal management escalated on Wednesday, October 21, 2026, as Senator Sharafadeen Alli issued a direct warning to commercial banks and financial institutions against approving fresh loan facilities for the Governor Seyi Makinde-led administration.
Alli, who represents Oyo South Senatorial District and serves as a key political figure in the state, gave the stern caution following reports of a fresh initiative by the state executive to secure a ₦100 billion commercial loan facility ahead of the upcoming election season.
The lawmaker warned that financial institutions that grant fresh, high-risk loans to the outgoing administration do so at their own peril and will be called to give a full public accounting of such transactions once the current tenure lapses.
In a statement issued by his campaign organization, Senator Alli emphasized that public office holds a duty of fiscal stewardship, insisting that long-term debt commitments should not be piled on the state near the end of a political cycle.
Alli raised concerns over what he described as a lack of transparency surrounding the state’s current debt portfolio, citing the need for an immediate publishable audit detailing domestic and external debt obligations, debt-servicing figures, and outstanding contractual liabilities.
The senator called on the Oyo State House of Assembly to reject routine approvals and exercise strict constitutional oversight on all executive borrowing requests.
He argued that fresh capital procurements so close to an election window risk being diverted into political campaigns and non-essential expenditures rather than genuine public infrastructure.
The warning adds fuel to the ongoing political battle between the ruling administration and opposition figures in Oyo State over revenue utilization, statutory allocations, and long-term state debt sustainability.
As of press time, the Oyo State Government and the Ministry of Finance have yet to issue a formal response to Senator Alli's statements.