Home NEWS OPINION: Oyo Buckling Under The Weight Of Debts || Morufu Smith

OPINION: Oyo Buckling Under The Weight Of Debts || Morufu Smith

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Recently, the governor of Oyo state, Engineer Seyi Makinde was said to have approached the State House of Assembly, seeking for approval for another loan of 2Billion naira. Feelers from Oyo Assembly, however, stated that the members of the House of Assembly were not favourably disposed to approving another round of loans for the governor since the previous loans approved hadn’t made positive impacts to Oyo state.

Every citizen of Oyo state, regardless of party sentiments and affiliations, must condemn in totality any attempt by the government of Engineer Seyi Makinde to plunge the state into an abyss of debts.

Let’s recall that since Gov Seyi Makinde assumed office on 29th May, 2019, he had borrowed tranches of loans to the tune of 150Billion naira or thereabouts. On the 23rd July, 2019, Governor Makinde obtained the sum of 10Billion naira infrastructural loan from three commercial banks, even without the approval of the state’s executive council since the council hadn’t been inaugurated as of the time the loan was obtained.

Also in 2019, Governor Makinde sought and got an approval from the House of Assembly to obtain 7.6Billion naira agricultural loan to finance resuscitation of Akufo and Eruwa farm settlements. As we speak, nothing has been heard of the farm settlements for which the loan was obtained. In the same year 2019, Governor Makinde obtained another 22.5Billion naira infrastructural loan.

To confirm that Governor Makinde was actually addicted to incurring debts, he, on 21st May, 2020, sent two loan requests of 20Billion naira contractor-financing to First Bank and 2.5Billion naira credit support facility from CBN to Oyo Assembly, which promptly approved the loan requests.

Oyo citizens had thought that Gov Seyi Makinde was done with his incessant requests for loans when he suddenly came up with another request for a 100Billion naira bond. Apart from the various loans already obtained by the government, it was also alleged that Governor Makinde relied on monthly loans from commercial banks to pay salaries. This is not difficult to believe since what the state gets from federal allocation and internally generated revenues is shrouded in unnecessary secrecy.

With the recent request for a loan of 2Billion naira, it’s high time all stakeholders in Oyo state project spoke with one voice to halt the debt-incurring spree embarked on by the present administration. With the huge debts already incurred by the government, the future growth and development of the state is undoubtedly gloomy. Insurmountable challenges are already being brewed by Seyi Makinde for whoever is going to take over from him after his 4-year tenure expires in 2023. All the promises of financial self-sustenance made by Seyi Makinde during the electioneering have come to nought. We are yet to see good results of the various loans obtained by the government even when the administration is running close to two years.

This is calling on all political parties and the citizens of the state to prevail on Governor Makinde to stop plunging the state into debts that are threatening to cripple her.

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