Loan Controversy: Osun Govt Refutes N10.5bn Debt
The Osun State Government has become the center of a heated controversy following a report alleging that the state incurred a debt of N10.5 billion in just 19 months.
Following the claims, the government led by Governor Ademola Adeleke denied taking any fresh loans since assuming office in November 2022.
According to Sahara Reporters’ investigation, the 2023 budget performance report indicates that Osun State recorded loans of N10 billion in 2023 and an additional N593.4 million between January and September 2024. This comes despite Governor Adeleke’s repeated assertions that his administration has not borrowed money.
Speaking during the second anniversary of his administration, Governor Adeleke stated, “We did not obtain any loan. We only blocked leakages in the state finance and employed local content to moderate project cost and enforce high standards.”
He emphasized that his administration has run a transparent government, managing finances without discrimination against inherited projects or contractors.
The Sahara Reporters’ claims also extended to expenditures on security votes, alleging that the state spent N2 billion on service votes in 2023 and N684 million between January and September 2024. Additionally, it was reported that another N1.1 billion was spent on security services within the same period.
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Government’s Rebuttal
In a swift response, the Osun State Commissioner for Information, Kolapo Alimi, dismissed the allegations as false and misleading.
He stated that all current debts were inherited from previous administrations under the All Progressives Congress (APC) and not initiated by Governor Adeleke’s administration.
“Since assuming office, the governor has been focused on servicing inherited debts and ensuring project implementation for loans tied to projects like the Ilesa Water Project,” Alimi said.
He described the Sahara Reporters’ claims as either a result of ignorance or deliberate mischief by the opposition.
Alimi further clarified that the loans cited in the budget performance report were connected to multilateral projects such as the Nigeria COVID-19 Action Recovery and Economic Stimulus (NCARES), the Rural Access and Agricultural Marketing Project (RAMP), and the State Action Business Enabling Reforms (SABER).
“These projects were inherited from previous administrations and are funded by institutions like the World Bank and the Islamic Development Bank. They are not new loans but reimbursements and disbursements for ongoing projects,” Alimi explained.
The commissioner also maintained that Governor Adeleke had adopted a “no-loan policy” and remained committed to financial discipline while addressing the financial challenges inherited from past governments.
Hafsoh Isiaq is a graduate of Linguistics. An avid writer committed to creative, high-quality research and news reportage. She has considerable experience in writing and reporting across a variety of platforms including print and online.
