Controversy is brewing in Oyo State following the approval of a ₦300 billion loan request by Governor Seyi Makinde, with sharp disagreements among lawmakers, opposition parties, and civil groups.

The uproar began when Hon. Ibraheem Shittu, an APC lawmaker representing Saki West, raised alarm that the loan was approved during an “emergency sitting” while the House of Assembly was on recess. He alleged that he was not informed and described the loan as “needless,” especially at a time when Oyo receives a 500% increase in FAAC allocation.

But the Oyo Assembly leadership quickly dismissed his claims, branding him “ignorant” and accusing him of poor attendance at plenary sessions. The Assembly clarified that out of the ₦300bn, ₦149bn was to refinance an existing loan with UBA, while ₦151bn was for new infrastructure and contractor financing. They insisted the process was constitutional and transparent.

The APC in Oyo State also waded in, condemning the move as reckless. The party accused the governor of piling up unnecessary debts, noting that this was the third major loan in 2025 alone, bringing the year’s borrowing to ₦610bn. The APC warned that the mounting debt could cripple the state before 2027.

On its part, the Oyo State Government defended the decision, saying Governor Makinde is committed to responsible financial management. According to his media aide, Dr. Sulaimon Olanrewaju, the refinancing arrangement will ease repayment burdens, while the infrastructure loan will fund key projects such as the Rashidi Ladoja Circular Road, Samuel Ladoke Akintola Airport upgrade, and feeder road construction. He accused the APC of hypocrisy, reminding them of unpaid salaries and abandoned projects under their administration.

Civil society groups have also joined the debate. The Concerned Youth Movement (CYM) described the loan approval as a betrayal of public trust, accusing lawmakers of disrespecting their constituents by approving loans without consultation.

Meanwhile, concerns for Hon. Shittu’s safety have been raised. APC chieftain, Barr. AbdulWaheed Lawal urged party leaders to petition the Police and DSS to protect the lawmaker from alleged threats and intimidation over his stance.

With arguments raging from the Assembly floor to the streets, the ₦300bn loan has become one of the most divisive political issues in Oyo State this year.