The Osun State Government has said the 12-year administration of the All Progressives Congress (APC) led to high local and foreign indebtedness for the State.
Responding to a National Bureau of Statistics report that listed Osun State as number ten among States with high debt service payments, Kolapo Alimi, Commissioner for Information and Public Enlightenment, clarified that the rise in monthly loan repayments for the State’s foreign loans was due to the devaluation of the Naira, not new borrowing.
Alimi emphasized that this increase was not unique to Osun State, but rather affected all States and the Federal Government as the repayment was based on the prevailing exchange rate.
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According to him, the NBS report, which was picked up by the opposition, had noted as follows: “Osun State, located in Nigeria’s southwest, is culturally known for the Osun-Osogbo Festival. In 2024, Osun recorded N3.4 billion in external debt service costs, up from N1.57 billion in 2023. This represents an increase of N1.83 billion or about 116%.”
“The public would kindly recall that repayment on foreign loans is usually done based on the prevailing exchange rate of the local currency (Naira) to the US$ Dollar.
“It is also important to put on record that Osun state was plunged into high local and foreign indebtedness in the 12 years of APC Government in the State.
“As the repayment is done in line with prevailing rate, there is an increase in the naira value of monthly loan repayment on foreign loans portfolio of all the States of the Federation.
“The inevitable increase, therefore, is not only peculiar to Osun, rather, it is applicable to all the States and the Federal Government.
The public is assured that the State financial management is responsible and sustainable without any new indebtedness.”
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