Osun Debt Profile Proportionate to Infrastructural Dev – Ogunkanmi

• Says Aregbesola Used the Loans Judiciously

By Abdulrofiu Agboola

In the wake of public outcry on the debt profile of Osun State, a former Executive Secretary of Ayedire Local Government, Mr Gbenga Ogunkanmi has called on people commenting on the indebtedness of the state to be objective, fair and avoid mischief in their comment.

A fair and objective appraisal of the debt profile, according to Ogunkanmi, would guide the peoples comments and make them appreciate the infrastructural development that has taken place since the inception of Governor Rauf Aregbesola.

Gbenga Ogunkanmi, former Executive Secretary, Ayedire Local Government, Osun State.

Ogunkanmi in an interview with our correspondent on Thursday in Osogbo, stated that it would be unjust and discouraging to chastise Aregbesola on the debt of the state, saying that Osun would have remained a rustic environment but for the ambitious infrastructural projects of the governor.

The former council chairman said that the report of the Nigeria Extractive Industries Transparency Initiative (NIETI) on the debt profile of the state failed to address the purpose, importance and impact of the projects on which the debt was incurred.

He said: “There is no country or state that is not indebted, either huge or small. The question to ask on the debt profile of Osun is: ‘What is the loan meant for, was it used for the purpose it was obtained, is the debt profile proportionate to the infrastructures provided by the governor?’

“NEIMET is only looking at current figure of accruable revenues; it failed to analyze the economic benefit of the projects that can turn around the economy of the state. No matter how huge the debt profile, it is going to pay us in the nearest future. Investors will be attracted with the standard of infrastructural development and our economy will improve.

“Osun incurred the loans on infrastructure, when you invest something, you do not expect a sudden gain, no, it will take time. That is the situation with Osun. NEITI only look at the present situation, it did not look at the future. Things cannot remain like this, by the time these infrastructures are yielding economic benefit; Osun revenues will submerge the debt.

“Infrastructural development is the foundation, the engine room for economic development. Things might be a little bit harsh for us financially now, but on the long run, Osun, not even Aregbesola will earn the profit of the investment in infrastructures.

“The most developed economy like U.S.A and others are also the most indebted countries in the world. As a financial expert, I know you cannot grow your business, company, etc without borrowing, except you are not ambitious. Check the records, Dangote, Otedola, others are also debtors.

“As a matter of fact, other states that are not indebted are not better than Osun, but Osun is far-far above them in term of infrastructural development. So, if Aregbesola had not taken loan, majority of which are bond, where would he get money to finance the project now that exchange rate is high?

“Other states that did not make the bold and ambitious move then are groaning and there is dearth of infrastructures in the states. We know what we took loan for, we know the standard of schools and roads we are constructing and we know the impact on the economy.”