Senator Sharafadeen Alli, the [All Progressives Congress (APC)](https://www.apc.org.ng) gubernatorial candidate for Oyo State, has publicly warned banks against extending any further credit to Governor Engineer Seyi Makinde as the governor seeks a fresh N100 billion loan, saying lenders will be held accountable for such approvals.
Alli, who represents the Oyo South Senatorial District in the Senate, said that any financial institution that provides the governor with additional funding will be required to answer for its decision. He made the statement in a document signed by his campaign director, Bisi Oladele, and circulated to the media.
**What is the loan request about?**
Governor Makinde, who is also the presidential candidate of the Allied Peoples Movement (APM), reportedly approached a commercial bank for a new loan of N100 billion. The funds are said to be earmarked for the upcoming local government elections in the state, but Alli described the request as another avenue for squandering public resources.
**What did Alli specifically caution banks to do?**
Alli warned that “Financial institutions cannot afford to disregard prudential lending standards merely because a sitting governor is seeking credit facilities,” emphasizing that banks must adhere to sound lending practices regardless of political pressure.
**When is the governor’s term set to end?**
Makinde’s second term as governor of [Oyo State](https://en.wikipedia.org/wiki/Oyo_State) is scheduled to conclude in May of the following year, leaving roughly seven months in office at the time of the warning.
The APC hopeful’s admonition comes amid broader concerns about state borrowing and fiscal prudence, especially as the state prepares for local government elections that could further strain its finances. Alli’s remarks aim to deter banks from bypassing regulatory safeguards in favor of political considerations.
**Background context**
Nigeria’s banking sector is governed by the Central Bank of Nigeria’s prudential guidelines, which require lenders to assess credit risk and maintain adequate capital buffers. Past instances of state governments borrowing heavily have sparked debates over fiscal sustainability and the potential impact on the national economy.
By issuing this warning, Alli seeks to position himself as a champion of fiscal responsibility, contrasting his stance with that of the incumbent governor ahead of the 2027 general elections.