A youth group, Federation of Yoruba Youths Forum, has raised concern over a N300 billion loan recently taken by the Oyo State government.
The forum said the decision to borrow such an amount had huge implications for the financial stability of the state and the well-being of citizens.
A statement in Abuja by the national coordinator of the forum, Comrade Isola Olamilekan, said while the forum understood the need for governments to access funds for development projects, the debt burden could be very difficult to manage.
They expressed fears that the state’s revenue might be insufficient to service the debt, potentially leading to a debt trap.
“We are concerned about the lack of transparency in the loan acquisition process, including the terms and conditions of the loan, interest rates and repayment schedules.
“The loan may compromise the state’s financial stability, potentially affecting its ability to fund essential public services, such as healthcare, education and infrastructure development,” the forum said.
The group urged the state government to provide a detailed breakdown of the loan, including the terms and conditions, interest rates and repayment schedules.
They recommended that the state government ensures transparency and accountability in the use of the loan, with regular updates on the project’s progress and financial management.
“We suggest that the state government engages with citizens and stakeholders to discuss the loan’s implications and ensure that their concerns are addressed.
“We believe that the Oyo State government has a responsibility to manage public funds prudently and ensure that any loan acquired is used for the benefit of its citizens.
“We urge the government to prioritise transparency, accountability and citizen engagement in the management of the loan,” the youths stated.
