Osun State Governor, Ademola Adeleke on Thursday said that the official debt of the state is N407.32 Billion, which his administration inherited by the previous government.
The Governor disclosed this while meeting with Osun State Traditional Rulers in Osogbo Osun State Capital.
Adeleke said the purpose of conference was to officially greet the monarchs and also to present the official debt profile left by the immediate past government under leadership of Adegboyega Oyetola.
Adeleke said, “With high sense of responsibility, I am reporting to our people through our traditional rulers, the total debt profile inherited by my administration from Governor Oyetola’s administration.
My administration inherited eight outstanding loan facilities, apart from salaries and pension debts, from Governor Oyetola’s administration. The repayment period ranges from 16 months to about 28 years”.
Adeleke listed the loans as Budget Support Facility with outstanding balance of N51.8 Billion; Salary Bail Out Loan N38.8 Billion; Restructured Commercial Bank Loans, N158.77 Billion; Excess Crude Account (ECA) Loan, N14.48 Billion.
Others are: CBN Infrastructure Loan, N9.2 Billion; FGN Intervention Loan, N1.7Billion; and FGN Bridge Finance Facility: N18.04 Billion
He also added that a large portion of this particular loan was taken after July 16th, 2022 election which Governor Oyetola lost, saying that there was no information on the Repayment terms.
“Not one kobo of this loan was left in Government Coffers, when the Deputy Governor and I resumed work on Monday 29th November 2022. And no explanation on how the loan was expended”, he emphasized.
“There were also Foreign loans of $86.2m, and there has not been any information on the Repayment Terms”.
“My good people of Osun state, the total loan stock as at today is N331.32 Billion.
"If the N76 billion debt on salaries and pension are added, the state is indebted to the tune of N407.32 Billion . The amount owed contractors is yet to be determined.
“The only Fund in government coffers, as at Monday 29th November, was for November 2022 Salary. Otherwise, the state treasury was empty”. As the Governor, I will ask questions and demand for answers”.
“Governor Oyetola must explain how the N331 Billion borrowed in the name of Osun State was expended, with no obvious infrastructural development to justify this huge debt”.
“Governor Oyetola must explain how the N18 Billion Bridge Loan taken after he lost the election on July 16, 2022, was expended”.
“Governor Oyetola must also explain why Osun state is owing salaries & pension to the tune of N76 Billion after collecting a N50 Billion Salary Bail Out Loan from the Federal Government”.
“The Creditors, especially the Commercial Banks must explain why various loans were given to an administration beyond its 4 year tenure. 28 years is equivalent to the tenure of at least four Governors. A child that is born today would have earned a PhD at 28 years of age. This is nothing but mortgaging the future of Osun State with nothing to show for it. This is definitely not acceptable." he added
Reacting to the development, the media aide to Oyetola, Ismail Omipidan, said Governor Adeleke has further exposed his lack of understanding of governance, stressing that Oyetola did not borrow a dime throughout his four years tenure.
Omipidan insisted that his principal never took any loan facility for the four years he (Oyetola) used in office.
He said, “If you go to my principal welfare address he stated it clearly, that like every other state, we benefitted N3billion on monthly basis for six months from the Federal Government as budget support. This money was given to all the 36 states of the federation without requesting. You can not categorize that as loan.
“The new governor does not understand the working of government and he should have allow those that understand the rudiment to explain it to him, So that he won’t be coming to the public to embarrass himself.”