The Governor of Osun State, Ademola Adeleke, has accused the immediate past governor, Gboyega Oyetola, of taking out an N18bn ($48m) loan after losing the July 2022 governorship election.
Speaking during a meeting with Osun State Traditional Rulers in Osogbo, Adeleke said that the state is currently in debt to the tune of N407.32bn, and that his administration inherited eight outstanding loan facilities, as well as salary and pension debts, from Oyetola’s administration. The repayment period for these loans ranges from 16 months to 28 years.
Adeleke also alleged that Oyetola’s administration did not leave any funds behind to repay the loans, nor was there a repayment plan in place.
He added that the only funds in the government’s coffers as of November 29th were for the November 2022 salary, and that 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 that Oyetola must explain how the N331bn borrowed in the name of Osun State was spent, with no obvious infrastructure development to justify the debt. He also called on the creditors, particularly the commercial banks, to explain why loans were given to an administration beyond its four-year tenure.
In response, Oyetola denied Adeleke’s allegations, saying that he did not borrow any money during his four years in office. “The claim by the new governor shows clearly that he lacks understanding of how government is run,” Oyetola’s spokesperson, Ismail Omipidan, said in a statement.
He added that the money received from the federal government was not a loan, but budget support provided to all 36 states without request.
The ongoing dispute over the state’s debt profile highlights the ongoing tensions between Adeleke and Oyetola, who were political rivals in the 2022 election.
Adeleke, who was declared the winner of the election, has vowed to hold Oyetola accountable for the state’s financial situation and to ensure that any funds borrowed are used for the benefit of the people of Osun State.
