The Labour Party (LP) has criticised the ₦1.668 trillion 2026 budget proposal of Ogun State Governor, Dapo Abiodun, warning that its scale and funding structure pose serious risks to the state’s long-term fiscal stability.
The party’s South-West Vice Chairman, Mr. Abayomi Arabambi, voiced the concerns on Monday in Abeokuta during the inauguration of newly elected executives of the Ogun State chapter of the party at the Nigeria Union of Journalists (NUJ) Secretariat, Iwe Iroyin.
Arabambi described the proposed appropriation bill—tagged the “Budget of Sustainable Legacy”—as fiscally unsustainable, arguing that its sharp year-on-year growth and heavy dependence on volatile revenues and borrowing reflect poor economic judgement.
According to him, while the administration’s intention to drive development through infrastructure investment may appear commendable, the budget’s structure raises fundamental questions about prudence and sustainability.
“The ₦1.67 trillion budget cannot be regarded as a sustainable legacy. A true legacy must be rooted in fiscal responsibility, transparent governance and spending that aligns with secure and verifiable revenue,” Arabambi said.
He expressed concern over what he termed excessive optimism in revenue projections, particularly the reliance on federal statutory allocations and debt-financed capital receipts. He noted that over 30 per cent of the proposed budget is expected to come from loans and grants, a move he said could mortgage the future of the state.
Arabambi further warned that injecting such a large volume of spending into the state economy could fuel inflationary pressures, crowd out private sector investment and increase the cost of living for residents.
“The danger is not only in the size of the budget, but in how it is to be funded. Unchecked borrowing and unrealistic projections could trap Ogun State in a cycle of debt servicing that will burden future administrations and generations,” he added.
While acknowledging improvements in Internally Generated Revenue (IGR), the LP chieftain argued that expenditure growth far outpaces revenue growth, leaving the state vulnerable to economic shocks.
He also accused the Abiodun-led administration of failing to deliver meaningful socio-economic benefits to the people, describing the government as insensitive to the plight of residents.
“This government has failed the people of Ogun State. Budgets should be instruments of development, not political statements. What we are seeing is ambition without adequate fiscal discipline,” he said.
Arabambi said the Labour Party would intensify efforts to unseat the ruling All Progressives Congress (APC) in the 2027 general elections, promising a people-centred and economically responsible alternative.
“We will take every lawful measure to remove the APC in 2027 and replace it with a government that prioritises accountability, social welfare and sustainable development,” he declared.
He urged the Ogun State House of Assembly to subject the budget proposal to rigorous scrutiny, demand full disclosure of loan terms and debt obligations, and ensure that all major projects undergo independent cost-benefit assessments before approval.
The event also featured the inauguration of newly elected Ogun State LP executives, including the State Chairman, Hon. Chief Oluwabukola Soyoye; Deputy Chairmen, Prince Ayodele Olaseni, Hon. Kazeem Banjoko, Hon. Ismail Arikewuyo, Comrade Sojobi Adesina, Asiwaju Teni Ola Basiru and Comrade Abosede Lamidi; State Secretary, Prince Ade Adesanya; Assistant Secretaries, Hon. Mojisola Ajayi and Temitayo Aluko; and State Treasurer, Comrade Fesomade Gbadebo, among others.
