Osun owes N407.32 billion ― Governor Adeleke

Osun State governor, Senator Ademola Adeleke on Thursday said the state is currently indebted to the tune of N407.32 Billion.

The governor who made this known while delivering his address at a meeting with the State Traditional Rulers in Osogbo, Osun State Capital.

The governor told them that his administration inherited eight outstanding loan facilities, apart from salaries and pension debts from Governor Oyetola’s administration, saying that the repayment period ranges from 16 months to about 28 years.

He explained that “the large portion of this particular loan was taken after the July 16th, 2022 election which Governor Oyetola lost, and 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. Foreign loans: $86.2m
No information on the repayment terms. My good people of Osun state, the total loan stock as at today is N331.32 Billion.”

The governor added that “the N76 billion debt on salaries and pension are added, the state is indebted to the tune of N407.32 Billion. The amount owed to contractors is yet to be determined. The only fund in government coffers as of Monday 29th November was for November 2022 salary. Otherwise, the state treasury was empty.

“As your governor, I will ask questions on your behalf. And will demand answers. Former 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 is taken after he lost the election on July 16, 2022, was expended.

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“Governor Oyetola must also explain why Osun state is owing salaries & pension to the tune of N76 Billion after collecting a N50 Billion salary bailout from the Federal Government.

“The creditors, especially the commercial banks must explain why various loans were given to an administration beyond its four-year tenure. 28 years is equivalent to the tenure of at least four governors. A child that is born today would have earned a Ph.D. 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. Osun is indebted to the tune of N407.32 Billion.”

He thereafter listed others as;

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 9 months.
3. Restructured Commercial Bank Loans – Outstanding Balance: N158.77 Billion, Monthly Repayment: N1.14 Billion, Repayable Period Outstanding: 139 Months = 11 years 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 and
5. CBN Infrastructure Loan – Outstanding Balance of N9.2 Billion, Monthly Repayment: N44.98m, Repayable Period Outstanding, 205 months = 17 years, 1 month.
6. FGN Intervention Loan – Outstanding Balance: N1.7Billion and Monthly Repayment: N100m, Repayable Period Outstanding = 17 months and
7. FGN Bridge Finance Facility: N18.04 Billion.