Osun State is grappling with a whopping N407.32 billion naira debt, including N76 billion owed as workers salaries and pension by the immediate past Governor Gboyega Oyetola led All Progressives Congress, APC administration.
Governor Ademola Adeleke, who made the declaration on Thursday in Osogbo the state capital also made another startling revelation that his predecessor took a bumper N18.04 billion federal bridge finance facility loan after he lost the July 16th, 2022 election without any information on the repayment terms.
Adeleke made these disclosures in an address he delivered at a meeting with the state’s royal fathers said the amount owed contractors is yet to be determined.
Besides, he said his administration inherited eight outstanding loan facilities from Oyetola, apart from salaries and pension debts while the repayment period ranges between 16 months and 28 years.
The loans listed include Budget Support Facility, Salary Bail Out Loan, Restructured Commercial Bank Loans, Excess Crude Account (ECA) Loan, CBN Infrastructure Loan, FGN Intervention Loan, FGN Bridge Finance Facility and Foreign Loans.
He said that the only fund in government coffers as at Monday 29th November was for the November 2022 Salary, as he insisted that he would ask questions and demand answers on how the funds were expended.
According to him, his predecessor must also explain why the state owes salaries and pension to the tune of N76 billion after collecting a N50 billion Salary Bail Out Loan from the Federal Government.
Adeleke said that creditors, especially the Commercial Banks must explain why various loans were given to an administration beyond its four year tenure.
Following is the governor’s full address:
“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.
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, 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: N1.7 Billion
- Monthly Repayment: N100m
- Repayable Period Outstanding: 17 months
7. FGN Bridge Finance Facility: N18.04 Billion
A large portion of this particular loan was taken after July 16th, 2022 election which Governor Oyetola lost.
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.
8. 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.
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 your Governor, I will ask questions on your behalf. And will 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.
I will update you accordingly, as we progress.
Find attached to my speech the attachments directly from the state’s Accountant General.”
