ABEOKUTA – Labour Party has attacked Ogun State Government on its proposed ₦1.67 trillion budget for 2026, warning of a looming fiscal crisis if the administration fails to adopt prudent financial management.
Addressing journalists at the inauguration of the Labour Party State Executive in Abeokuta, Ogun State capital on Monday, the LP South West Chairman, Comrade Abayomi Arabambi described the budget as “ambitious but fiscally unsustainable”, citing over-reliance on federal allocation and debt-financed revenue streams.
The LP’s South West Vice chairman questioned the wisdom of financing ₦518.90 billion of the budget through loans, potentially mortgaging future state revenues.
While acknowledging impressive IGR growth, Arabambi noted that expenditure growth outpaces revenue, threatening fiscal stability.
Arabambi called on the Ogun State House of Assembly to rigorously scrutinize the budget, demanding transparency on loan agreements and project viability.
“The people demand accountability, not monumental projects at the altar of fiscal instability,” he emphasized.
“The budget’s Achilles’ heel is its staggering dependence on volatile revenue sources, leaving Ogun State hostage to external shocks,” Arabambi stressed.
He continued, “Ogun State risks trading physical infrastructure for generational debt bondage. The budget’s structure appears development-focused, but its sheer scale and ambition raise profound concerns.
“The budget projects ₦554.81 billion from federal statutory allocations, constituting 33% of total revenue. This exposes Ogun State to external risks, particularly oil price shocks and production quotas.
“The presentation of a historic ₦1.668 trillion Appropriation Bill for the 2026 fiscal year by Governor Dapo Abiodun, termed the “Budget of Sustainable Legacy,” has undoubtedly captured public attention for its sheer scale and ambition.
“While the administration’s intent to drive growth through infrastructure and complete legacy projects is clear, a rigorous economic critique, benchmarked against prudent fiscal management and sustainable development principles, raises profound concerns. This statement aims to provide a balanced, evidence-based analysis of the proposed budget, questioning its underlying assumptions and potential long-term implications for the fiscal health of Ogun State.
“On the surface, the budget’s structure appears development-focused. Allocating 63% (₦1.044 trillion) to capital expenditure, with significant portions dedicated to Infrastructure (32%), Education (17%), and Health (13%), aligns with theoretical models for stimulating economic growth.
“The cited improvements in Internally Generated Revenue (IGR), from ₦52 billion in 2020 to a projected ₦250 billion for 2025, are commendable and reflect administrative effort.
“However, these positives are overshadowed by the budget’s staggering 63% year-on-year increase and its heavy reliance on volatile and debt-financed revenue streams, which collectively pose a significant risk to the state’s financial sustainability.”
Arabambi, therefore, sought a moderated budget growth, credible financing plan, and rigorous project assessment.
Meanwhile, the inaugurated LP State Executive members are: Chief Oluwabukola Soyoye (Chairman), Prince Ayodele Olaseni (State Deputy Chairman 1), Hon. Kazeem Banjoko, State Deputy Chairman 2, Hon. Ismail Arikewuyo, State Deputy Chairman,Comr Sojobi Adesina, State Deputy Chairman, Asiwaju Teni Ola Basiru, State Deputy Chairman.
Others are; State Deputy Chairman, Com. Abosede Lamidi, State Secretary
Prince Ade Adesanya, State Asst Sec. 1, Hon. Mojisola Ajayi, State Asst Sec 2, Temitayo Aluko, State Treasurer, Com. Fesomade Gbadebo, State Fin Sec., Pastor Juliana Andrews, State Publicity Sec, Com. Olusola Olufemi, State Organizing Sec,
Malik Olasunkanmi Olaleye, State Legal Advisor,
Barr. Joseph Simon, State Auditor, Barr. Olufemi Ibiayo, State Women Leader, Alhaja Omowunmi Abdul, State Youth Leader, Comr Akinlabi Joseph, Central Senatorial Women leader, Com. Adesola Monsurah Shittu, East Sen Women Leader, Mrs F M Ogunlana, West Sen Women Leader, Comr Afolabi Funmilayo, Sen Youth Leader, Adekunle Adebiyi, East Sen Youth Leader, Mr Ayanfe I.A, West Sen Youth Leader, Hon Goriola Aderoku
