Adeleke: I inherited N407bn debt from Oyetola

Osun State Governor, Ademola Adeleke, says his administration has discovered a debt of N407.32 billion left behind by the immediate past governor of the state, Gboyega Oyetola.

Adeleke made this known at a meeting with the traditional rulers in Osogbo, the Osun State capital on Thursday.

“I called this meeting first to meet our royal fathers and to present to you the official debt profile of Osun as at November 30 and as submitted to me by the state Accountant-General.

“With high sense of responsibility, I am reporting to our people, through our traditional rulers, the total debts 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 governor said.

He said the repayment period of the loans ranges from 16 months to about 28 years.

Governor Adeleke listed the loans to include “Budget Support Facility: Outstanding Balance: N51.8 billion, Monthly repayment: N154.9 million, Repayable Period Outstanding: 335 months = 27 years nine months.

“Salary Bail Out Loan: Outstanding Balance: N38.8 billion, Monthly Repayment: N232.77 million, Repayable Period Outstanding: 167 Months = 13 years nine months.

“Restructured Commercial Bank Loans: Outstanding Balance: N158.77 billion; Monthly Repayment: N1.14 billion, Repayable Period Outstanding: 139 Months = 11 years six months.

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“Excess Crude Account (ECA) Loan: Outstanding Balance: N14.48 billion, Monthly Repayment: N89.97million, Repayable Period Outstanding: 161 Months = 13 years four months.

“CBN Infrastructure Loan: Outstanding Balance: N9.2 billion, Monthly Repayment: N44.98 million, Repayable Period Outstanding: 205 months = 17 years, one month.

“FGN Intervention Loan: Outstanding Balance: N1.7 billion, Monthly Repayment:
N100 million, Repayable Period Outstanding: 17 months.

“FGN Bridge Finance Facility: N18.04 billion (A large portion of this particular loan was taken after July 16 election, which Gov. Oyetola lost. No information on the Repayment terms).”

Adeleke said no kobo of the N18 billion loan was left in the state government’s coffers when he assumed office, adding that no explanation was also provided by the last administration on how the loan was expended.

He said foreign loans discovered was $86.2 million, adding: “There is no information on the repayment terms of the loan.

“My good people of Osun, 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 has yet to be determined.

“The only fund in government coffers, as at Monday, November 29, was for November 2022 salary, otherwise, the state treasury was empty,” the governor said.

Adeleke added that Oyetola must explain how the N331 billion borrowed in the name of the state was expended, with no obvious infrastructure development to justify the huge debt.

“Oyetola must explain how the N18 billion Bridge Loan taken after he lost the election on July 16, 2022, was expended.

“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 four year tenure,” Governor Adeleke stated.

The Star