Osun Is Indebted To The Tune Of N407.32 Billion – Governor Adeleke

—-Demands Explanation From Oyetola

Contrary to the claims of immediate past Governor Gboyega Oyetola that his administration left 14billion naira into the coffers of Osun State government, Governor Demola Adeleke Thursday put the debt profile of the State at 407. 32billion

Adeleke who gave the revelation during a meeting with the traditional Rulers said with the discovering of the huge debt profile of the State it had make it difficult to meet the yearning and aspiration of the people especially in payment of salaries, pension and other state demands.

Adeleke said ” I am pleased to welcome our royal majesties and fathers to this all important event. I called this meeting first to meet our royal fathers and to present to you the official debt profile of Osun state as at November 30th, 2022 as submitted to me by the Accountant General of Osun State.

“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.

” This event is in pursuance of my pledge to Osun people to be transparent and run an open government.

The Governor disclosed that his 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, as follows:

1. Budget Support Facility:
• Outstanding Balance: N51.8 Billion

• Monthly repayment: N154.9m

• Repayable Period Outstanding:
335 months = 27 years 9 months

2. Salary Bail Out Loan:

• Outstanding Balance: N38.8 Billion

• Monthly Repayment: N232.77m

• Repayable Period Outstanding:

•167 Months = 13 years 9months

3. Restructured Commercial Bank Loans:

• Outstanding Balance: N158.77 Billion

• Monthly Repayment: N1.14 Billion

• Repayable Period Outstanding:
139 Months = 11years 6 months.

4. Excess Crude Account (ECA) Loan:
• Outstanding Balance: N14.48 Billion

• Monthly Repayment: N89.97m

• Repayable Period Outstanding:
161 Months = 13 years 4 months

5.CBN Infrastructure Loan:
• Outstanding Balance: N9.2 Billion

• Monthly Repayment: N44.98m

• Repayable Period Outstanding:

205 months = 17 years 1 month

6. FGN Intervention Loan:
• Outstanding Balance:
N1.7Billion

• Monthly Repayment:
N100m

• Repayable Period Outstanding:
17 months

7. FGN Bridge Finance Facility: N18.04 Billion

According to him a large portion of this particular loan was taken after July 16th, 2022 election which Governor Oyetola lost. adding that there is no information on the repayment terms.

His words “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 saying that Foreign loans remains $86.2m of which there is no information on the Repayment Terms.

He said the state had a total loan stock as at today is put at N331.32 Billion. and 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.

Adeleke hinted that the only Fund in government coffers, as at Monday 29th November, was for November 2022 Salary. Otherwise, the state treasury was empty.

He told the Royal fathers that 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.

He 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.

The Governor however promised to continue to update the traditional Rulers on the update of state finances.