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Labour Party Faults Ogun State’s ₦1.669 Trillion 2026 Budget Over Rising Debt Concerns

Phinadon Mag

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Quick Summary:
The Labour Party criticizes Ogun State’s ₦1.669 trillion 2026 budget, warning that its reliance on loans could deepen debt and threaten long-term financial sustainability.

he Ogun State Government has proposed a ₦1.669 trillion budget for the 2026 fiscal year, tagged the “Budget of Sustainable Legacy.” Governor Dapo Abiodun presented the proposal to the State House of Assembly on Wednesday, December 3, 2025, describing it as a blueprint for infrastructure expansion and economic growth.

The 2026 budget represents a 63% increase over the 2025 appropriation and is highly capital-intensive, reflecting the administration’s focus on long-term development projects.

Budget Breakdown
  • Total Budget: ₦1.669 trillion
  • Capital Expenditure (63%): ₦1.044 trillion
  • Recurrent Expenditure (37%): ₦624.76 billion
Funding Sources
  • Internally Generated Revenue (IGR): ₦509.88 billion
  • Federal Allocations (FAAC, VAT, etc.): ₦554.81 billion
  • Capital Receipts (Loans and Grants): ₦518.90 billion

Governor Abiodun stated that the budget aims to stimulate economic growth, enhance service delivery, and position Ogun State for long-term prosperity, with a strong emphasis on infrastructure, education, and IGR expansion.

Labour Party’s Criticism and Fiscal Concerns

The Labour Party (LP) in Ogun State has sharply criticized the proposed budget, warning that its heavy reliance on borrowing could plunge the state into unsustainable debt.

Borrowing Concerns

Comrade Abayomi Arabambi, the Labour Party’s National Vice Chairman for the Southwest, described the borrowing plan as fiscally reckless, arguing that the state does not need to borrow to fund nearly half of its capital expenditure.

He cautioned that such borrowing would burden future generations and erode the state’s financial independence, urging residents to resist any attempt to finance the budget through excessive loans.

Potential Legal Action

Arabambi further revealed that the Labour Party may pursue legal action against the Abiodun administration if it proceeds with its borrowing plans for the 2026 fiscal year, citing potential violations of fiscal responsibility laws.

Fiscal Responsibility Debate

The LP accused the government of contradicting its own claims of fiscal discipline, arguing that the proposed debt-driven approach jeopardizes Ogun State’s financial future.

In contrast, the state government maintains that the budget is carefully structured to ensure sustainability, emphasizing that all borrowing will be strategic, transparent, and development-oriented.

Government’s Defense

Officials from the Ogun State Ministry of Finance have defended the budget, asserting that the loan components are targeted at infrastructure projects capable of generating long-term economic returns.

They argue that the “Budget of Sustainable Legacy” is designed to balance growth with fiscal prudence, ensuring that every borrowed naira contributes to productive investments rather than recurrent spending.

The administration insists that the increase in IGR projections and federal allocations will help offset borrowing needs and maintain debt sustainability ratios within acceptable limits.

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Police arrest Bauchi man accused of poisoning motorcyclist and stealing his bike.

Ikechukwu Emmanuel

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Operatives of the Bauchi State Police Command have arrested a 27-year-old man, Isiyaka Badamasi, for allegedly poisoning a commercial motorcyclist in an attempt to steal his motorcycle.

According to a statement issued on Thursday by the command’s spokesperson, SP Nafiu Habib, Badamasi and his alleged accomplice, Ma’aruf Sani, reportedly offered a 21-year-old motorcyclist a sweet containing a harmful substance. The victim, who resides in the Yelwa Tudun area of Bauchi, allegedly became intoxicated after consuming it.

The suspects were said to have attempted to dispossess him of his Bajaj Boxer motorcycle. However, the victim raised an alarm after sensing danger, attracting members of the public who apprehended Badamasi. Sani, both of whose residents are reportedly from Na’ibawa in Kano State, escaped and is currently the subject of a police manhunt.

The victim was taken to Gamuwa Primary Health Care Centre, where he remains on admission and is responding to treatment.

The Commissioner of Police, Sani-Omolori Aliyu, has ordered the transfer of the case to the State Criminal Investigation Department for further investigation. The command also urged residents to remain vigilant and reaffirmed its commitment to protecting lives and property across the state.

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Entertainment

Lojay: My uncle told me I would never succeed in music.

Ikechukwu Emmanuel

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Nigerian singer Lojay has revealed that he faced significant opposition when he decided to pursue a career in music, including doubts from members of his family.

Speaking during a recent livestream with content creator Gilmore, the “Monalisa” hitmaker recalled that one of his wealthy and influential uncles, who is now involved in politics, told him he would never succeed in the music industry.

“I have an uncle who is now in politics. I won’t mention his name, but he is very rich and popular. When I wanted to start music, he told me I would never blow,” Lojay said.

Despite the discouragement, the singer remained committed to his ambition and used the criticism as motivation. He expressed satisfaction that his perseverance had eventually produced positive results.

Lojay also encouraged his fans to remain confident in their dreams and avoid allowing negative opinions to define their ambitions.

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News

Benue Police Deny Withdrawal of Mobile Personnel from Ayilamo.

Ikechukwu Emmanuel

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The Nigeria Police Command in Benue State has dismissed reports alleging that Mobile Police personnel were withdrawn from Ayilamo community in Logo Local Government Area.

In a statement issued by the Command’s spokesperson, DSP Orchia Aondogwu, the report was described as unfounded and baseless. He stated that Mobile Police personnel remained deployed in Ayilamo alongside the Divisional Police team and other tactical units.

Aondogwu also said additional military personnel had been deployed to reinforce security in the area, urging the public to disregard the report.

However, the traditional ruler of Ayilamo, Mue Ter, Chief Torkoer Samuel, contradicted the police account. He claimed that the Mobile Police personnel left the community on Wednesday with their equipment and Armoured Personnel Carriers.

The conflicting accounts have raised questions about the current security situation in Ayilamo and the extent of military presence in the community.

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