Ademola Adeleke, the governor of Osun State, claims that his predecessor, Gboyega Oyetola, borrowed N18 billion after losing the governorship election in the state.
On Thursday, December 15, the governor announced that the state is in debt to the tune of N407.32 billion.
Adeleke told traditional rulers in Osogbo that Oyetola must explain why the state owes N76 billion in salaries and pensions after receiving a salary bailout of N50 billion from the federal government.
Adeleke stated that his administration inherited eight loan facilities, as well as a pension and debts, with repayment terms ranging from 16 months to 28 years.
He said: “My good people of Osun State, the total loan stock as of today is N331.32billion.
“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 to contractors is yet to be determined.
“The only fund in government coffers, as of 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 answers,” Adeleke told the traditional rulers.
He added, “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.
“Governor 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. 28 years is equivalent to the tenure of at least four governors. A child that is born today would have earned a Ph.D. at 28 years of age. This is nothing but mortgaging the future of Osun State with nothing to show for it. This is definitely not acceptable.”