LP vows to resist Abiodun’s loan move for 2026 budget

By : Segun Ayinde

Date: 15 December 2025 9:38pm WAT

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National Vice Chairman, Southwest Labour Party, Com. Abayomi Arabambi, on Monday, called on residents of Ogun State to resist any attempt by Governor Dapo Abiodun to get loan to finance the N1.669 trillion budget for the year 2026.

Recalled that Governor Abiodun recently presented a budget of “Sustainable Legacy” before members of the Ogun State House of Assembly.

But, Arabambi, while speaking at the inauguration of the new executive for LP in the state, at Nigerian Union of Journalists Secretariat(NUJ) Iwe-Iroyin, Abeokuta, on Monday, insisted that the state did not need to borrow to fund half of the capital expenditures in the budget.

He divulged that the party would seek legal action against the Abiodun-led administration should it go ahead with its decision to borrow to finance the expenditures in the 2026 Appropriation bill.

The LP’s National Vice Chairman said that any move by the current administration to borrow to finance the budget would be stopped, saying that LP would not fold its arms and watch the future of the state plunge into more debts.

He expressed concern that the terms, interest rates, and repayment schedules of the proposed debts were not detailed in the budget, stating that this contradicted the principle of the budget’s sustainable legacy.

“He said he does not need any loan. We want the governor to take note that Ogun citizens will resist any attempt to seek loan. We advise him not to take loan, or we will seek redress in court.

“The Debt-Financed Capital Receipts Question: The inclusion of ₦518.90 billion from capital receipts, including loans and grants, is the most alarming aspect. This item, representing 31 per cent of total revenue, is essentially a projection of new borrowing.”

“To finance over half of its capital expenditure through loans in a single fiscal year is a strategy that demands the highest level of scrutiny. The terms, interest rates, and repayment schedules of these proposed debts are not detailed, but they inevitably mortgage future state revenues for present-day spending.”

“This directly contradicts the principle of a ‘sustainable legacy,’ potentially substituting physical infrastructure for a legacy of financial bondage for future administrations and generations of taxpayers,” he said.

Arabambi also expressed confidence that LP remains the party to beat in the state come 2027 elections

“We will take over the governorship from APC, the three Senatorial seats, nine House of Representatives and 26 seats of the state House of Assembly come 2027 elections”, he noted.

Earlier, the newly elected State Chairman of the party, Hon. Oluwabukola Soyoye, while speaking in the company of the newly elected members, promised to run an all-inclusive party-led executive to ensure the party remains a beacon of hope to the people in the state.

Soyoye also assured members that her door is open to welcome ideas that will foster unity among members and boost the trust and integrity that the people have in the party.

“I will ensure our party remains a beacon of hope, unity and progress. I promise to be a leader who listens and shows integrity. Let’s work together for our party,” he said.

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