Osun Debt Profile: Traditional Rulers in shock, disbelief as Adeleke reveals the state owes N407.32 billion
... says Oyetola took N18billion loan after losing election
Traditional rulers in Osun State were left in disbelief as the State’s Governor, Senator Ademola Adeleke revealed that his administration inherited a debt stock of N407.32 billion amidst an N18billion naira loan taken after losing election.
Adeleke who met with the traditional rulers for the first time since his inauguration last month, said he took the decision of informing the kings across the state in line with his campaign promise of running an open and transparent government.
He disclosed that the accumulated debts is in eight categories, noting that repayment period of the debts ranges from 16 months to about 28 years.
“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,” the Governor noted in a speech read at the meeting.
“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.”
A breakdown of the debts, according to the Governor are: Budget Support Facility– N51.8 billion, Salary Bail Out Loan– N38.8 billion, Restructured Commercial Bank Loans– N158.77 billion, Excess Crude Account (ECA) Loan– N14.48 billion, CBN Infrastructure Loan– N9.2 billion, FGN Intervention Loan– N1.7 billion, FGN Bridge Finance Facility– N18.04 billion, Foreign Loans– $86.2 million.
“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,” Governor Adeleke pointed out, adding that money owed contractors by the past administration is yet to be determined.
