The Osun State Governor, Ademola Adeleke has accused his predecessor, Gboyega Oyetola of throwing the state into debt after he lost the July 16, 2022 gubernatorial poll.
Oyetola allegedly took a loan of N18 billion shortly before he handed over power, bringing the total amount owed by the state to N407.32 billion as of November 30th, 2022.
Adeleke made the revelation during a meeting with Osun State Traditional Rulers at Osogbo, Osun State Capital.
He said, “my administration inherited eight outstanding loan facilities, apart from salaries and pension debts, from Governor Oyetola’s administration.
Furthermore, Adeleke disclosed that the repayment period for the loan facilities ranges from 16 months to about 28 years.
“My good people of Osun state, the total loan stock as of 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 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,” Adeleke told the traditional rulers.
He added, “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 and 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 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.”
Below is the breakdown of the debt by Adeleke below:
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.