Home News 22.5 Billion Loan: Don’t Compound The Debt Burden Of Oyo — SPN...

22.5 Billion Loan: Don’t Compound The Debt Burden Of Oyo — SPN Warns Makinde


The Socialist party of Nigeria, SPN, has warned the executive governor of Oyo State, Engr. Seyi Makinde against borrowing 22.5 billion naira.

The party, in a statement signed by its secretary, Comrade Ayodeji Adigun, described the loan as an attempt to compound the debt burden of the state.

OYOINSIGHT.COM recalls that the Oyo State House of Assembly had on the 19th of May approved a loan of N20 billion and N2.5 billion from the First Bank and Central Bank of Nigeria respectively.

“SPN decries the approval of these new loans. This will no doubt compound the debt burden of the state which has now been increased by over N40 billion with the newly approved loan under Seyi Makinde-led government in the state.”

“Again, the approval of the new loan which will be third of such facilities to be accessed by Engr Seyi Makinde-led government in less than one year of its existence is more or less like mortgaging the future of the state especially when none of the loans previously obtained by both the past and the present governments in the state has ever translated into any improvement in the condition of workers and poor people in the state,”the party’s secretary wrote in the statement.

Even though the party acknowledged and described as a welcome development the commitment expressed by the Engr Seyi Makinde-led government to fund both the reconstruction and rehabilitation of road infrastructure including upgrading of health facilities across this state, it noted that if the fundamental motive behind all of the highlighted priority projects is to alleviate the suffering of the working but suffering people and not self-enrichment, it strongly believe that the procurement of the loan facilities is needless and avoidable.

The statement read further, “The SPN strongly holds that all the projects upon which the additional loan facility of N22.5billion was secured can actually be executed without necessarily compounding the outrageous debt burden under which the state groans at this present time.

“This is actually possible, if the alleged security vote of 1billion naira the Governor award to himself is scrapped, all political office holders are placed on salaries and allowances of civil servants and workers’ democratically controlled and well-equipped public works programme is used for all projects including roads, schools, hospitals etc instead of the fraudulent and costly contract system. This is such that the resources freed up from this approach is added to the pool of fund at the disposal of the state and such same is committed and invested on the areas of needs of the working people in the state.

“As we always maintain contract system has been one of the fraudulent means through which pro-capitalist politicians and business associates loot the public fund and throw the state into needless debt crisis.

“SPN equally holds that the democratic control of all of the resources and funds at the disposal of the state by elected committee of workers and community people is very important so as to ensure that they are judiciously invested in areas of needs of the people.

“Given the pro-capitalist and profit-first orientation and disposition of the Seyi Makinde-led government, we recognise that it will be difficult for the regime to follow this kind of programme. It is in the light of this we of the SPN continue to insist that only a government of workers and the poor will be ready to break away from ruinous capitalist policies that always seek to prioritize the interest of a few members of the billionaire class at the expense of the interest of the working people.”

The party Also called on all oppressed working people and youths in the state to join and help to build the party towards an enthronement of a socialist government whose existence will be primarily focused on how to bring a significant improvement to the living and working condition of workers, youths and the masses in the state.

Leave a Reply