Oyo Loans: PDP’s Gbolarumi Raises Alarm Over State’s Growing Debt Burden

By: Tunji Okunlola

Hazeem Gbolarumi, a former deputy governor of Oyo State and governorship contender on the platform of the Peoples Democratic Party (PDP), has questioned the debt policy of Governor Seyi Makinde, warning of what the state’s growing obligations could mean for its finances.

Gbolarumi stated his position in a statement released on Saturday by his Media Office.

His comments follow the Oyo State House of Assembly’s approval of two financing proposals. The first is a N100 billion loan. The second is a N300 billion facility meant to refinance an existing contractors’ finance arrangement with Access Bank.

According to the state government, the N100 billion loan will go toward ongoing infrastructure projects and other development programmes. The refinancing, officials say, will shift the existing arrangement from Access Bank to United Bank for Africa (UBA) at a lower interest rate.

The loans have drawn scrutiny from opposition politicians, who have raised concerns about the pressure the new commitments could place on the state’s finances and on the administration that will take office after the 2027 elections.

Gbolarumi’s intervention comes as political activity ahead of the 2027 governorship election gathers pace. Beyond the debt issue, he has also taken issue with aspects of Makinde’s leadership of the party, including how PDP stakeholders have been consulted and how a successor is being chosen.

The controversy has renewed calls for the government to be more open about the loans, including what the money will be used for, the terms of repayment and the specific projects that will benefit.

Supporters of the government argue that borrowing is a legitimate way to fund infrastructure and complete projects already under way. Critics counter that the state should publish fuller details of its debt obligations and explain what further commitments would mean for its finances.