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Osun Indebted To Tune Of N407.32 Billion : Adeleke To Royal Fathers

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4 years ago

December 15, 2022

Ireporteronline

Osun Indebted To Tune Of N407.32 Billion : Adeleke To Royal Fathers

Ademola Adeleke scaled 1

Osun State Governor Ademola Adeleke has briefed Royal fathers on the financial situation he inherited upon taking office.

Adeleke, of Peoples Democratic party, PDP, who succeeded Gboyega Oyetola of the All Progressives Congress, APC , revealed that the state is indebted to the tune of N407.32bn.

While addressing Osun State Traditional Rulers on December 15th at Osogbo, Adeleke said, “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:

Budget Support Facility:
Outstanding Balance: N51.8 Billion
Monthly repayment: N154.9m

Repayable Period Outstanding:
335 months = 27 years 9 months

Salary Bail Out Loan:
Outstanding Balance: N38.8 Billion

Monthly Repayment: N232.77m

Repayable Period Outstanding:

67 Months = 13 years 9months

Restructured Commercial Bank Loans:

Outstanding Balance: N158.77 Billion

Monthly Repayment: N1.14 Billion

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

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

FGN Intervention Loan:
Outstanding Balance:
N1.7Billion
Monthly Repayment:
N100m

Repayable Period Outstanding:
17 months

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.

Foreign loans: $86.2m
No information on the Repayment Terms.
He added, “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.

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