KEY POINTS
- APC warns Adeleke’s $56 million loan could raise Osun’s foreign debt to N81.6B, threatening fiscal stability.
- Governor Adeleke dismisses APC claims, blaming past administrations for inherited federal loans.
- Osun’s participation in federal borrowing initiatives, including NG-CARES, sparks political tension and debt sustainability concerns.
Osun State’s financial stability is under scrutiny as the All Progressives Congress (APC) vocally opposes Governor Ademola Adeleke’s plan to secure a N56 billion($36.22 million) foreign loan.
The opposition party has expressed alarm over the state’s already high debt profile, warning that the loan could push Osun’s foreign debt burden to N81.6 billion($52.77 million), deepening concerns about its fiscal sustainability.
APC criticizes Adeleke’s borrowing strategy
In a statement released Monday from the Tinubu/Shettima campaign office, Chief Kola Olabisi, APC’s Director of Media and Publicity, criticized the governor’s borrowing strategy.
He claimed Adeleke’s approach was detrimental to Osun’s financial health, accusing the administration of accumulating excessive debt with little regard for long-term economic stability.
Debt load mounts as Adeleke’s administration borrows heavily
According to The Nation, Olabisi highlighted the growing debt load, pointing to Osun’s existing obligations, including domestic loans of N10 billion($6.47 million) and N3.92 billion($2.54 million) earlier in 2023, which have already raised the state’s total debt to N55.3 billion($35.79 million).
He further alleged that the state had secretly secured an additional N26.6 billion($17.21 million) loan to fund the ‘Nigeria for Women Project,’ a move he argued only exacerbates the state’s mounting financial woes.
The APC also voiced concerns over Osun’s involvement in the second phase of the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) programme, warning that the state’s plan to borrow N56 billion($36.22 million) under the initiative would add more strain to its finances.
Governor’s office rebukes APC’s allegations, blames predecessors
In response, Governor Adeleke’s spokesperson, Olawale Rasheed, quickly dismissed the APC’s allegations, labeling them as “fake news” and accusing the opposition of spreading baseless claims due to their inability to challenge Adeleke’s governance.
Rasheed emphasized that many of the loans cited by the APC were part of federal initiatives inherited from former governors Rauf Aregbesola and Gboyega Oyetola, underscoring that these financial matters were not under Adeleke’s control. “This is not our issue,” Rasheed asserted, calling the APC’s criticisms “illiterate postulations.”
As tensions between the APC and Adeleke intensify, all eyes remain on Osun’s fiscal trajectory as the state navigates its growing debt challenges and the political ramifications of its borrowing strategy.
