The Labour Party (LP) in Ogun State has declared a firm stance against the state government's plan to borrow funds to finance its proposed 2026 budget, vowing to seek legal redress if the move proceeds.
LP Issues Stern Warning Over Borrowing Plan
On Monday, December 15, 2025, the National Vice Chairman of the Labour Party for the Southwest, Comrade Abayomi Arabambi, called on residents of Ogun State to resist Governor Dapo Abiodun's intention to secure loans for the N1.669 trillion "Sustainable Legacy" budget. Arabambi made this declaration during the inauguration of the party's new executive in the state, held at the Nigerian Union of Journalists (NUJ) Secretariat in Abeokuta.
Arabambi insisted that the state has no justification for borrowing to cover half of its capital expenditures. He revealed that the party is prepared to take the Abiodun-led administration to court should it proceed with the loan plan outlined in the 2026 Appropriation Bill.
Alarm Over Undisclosed Debt Terms
The LP chieftain expressed deep concern over the lack of transparency surrounding the proposed borrowing. He highlighted that the budget includes N518.90 billion from capital receipts, such as loans and grants, which constitutes a significant 31% of the total projected revenue.
"The inclusion of ₦518.90 billion from capital receipts, including loans and grants, is the most alarming aspect," Arabambi stated. "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."
He criticized the absence of detailed terms, interest rates, and repayment schedules, arguing that this approach "mortgages future state revenues for present-day spending" and directly contradicts the budget's proclaimed "sustainable legacy" theme. According to him, this strategy risks leaving a legacy of financial bondage for future administrations and taxpayers instead of sustainable physical infrastructure.
2027 Political Ambitions and Party Unity
Beyond the budget confrontation, Arabambi used the occasion to express confidence in the LP's electoral prospects. He boldly predicted that the party would take over the state's governance from the All Progressives Congress (APC) in the 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 asserted.
The event also featured the newly elected State Chairman of the party, Honourable Oluwabukola Soyoye, who promised to lead an inclusive executive. Soyoye assured members that her leadership would foster unity, integrity, and trust, keeping the party as a beacon of hope for the people of Ogun State.
"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," Soyoye pledged to the gathering.
