The Alarming N37bn Increase in Osun State's External Debt. By Sesan Opadoyin

The recent surge in Osun State's external debt, from N41 billion in 2022 to N78 billion in 2023, a staggering increase of N37 billion, raises significant concerns.

This alarming increase, as shown on page 61 of the state's 2023 audited financial statements published 4 days ago, suggests that the Ademola Adeleke government may be engaging in borrowing practices without adequate transparency. The people of Osun State deserve to know the specifics behind this substantial rise in debt. It is crucial to hold the government accountable and ensure that they justify this significant financial decision, particularly when the government is notorious for profligacy and insane spending. For instance, against common-sense, Governor Adeleke tweaked the 2023 budget for his office to N19bn (See page 62 of the 2023 audited financial statement) from the initial N6.2bn that was previously passed by the last Assembly. This was at a time the budget for key sectors like Agriculture was slashed from N5bn to N2.7bn by the governor. As at the end of the first quarter of the 2024 alone, N5.2bn had also been spent for the entertainment, food and luxury lifestyle of the governor and his lackeys.

Similarly, the government of Osun in 2023 expended N4.3bn for Travel and Transport as against N1.3bn incurred by the previous government.

Given the unsavoury history of the current government for frivolous and frenzied spending, one would be worried that such a jump occured on the debt profile of the state. What could it have been used for in view of the fact that the same government received N34bn grants/aids as well as N141bn (both State and 30LGAs) federal allocation in 2023.

Borrowings, especially one based on impulse, can have long-term negative implications for the state's economy and its citizens. Increased debt levels can lead to higher interest payments, reduced public spending on essential services, and potential economic instability. It is imperative the government provide a detailed breakdown of how these borrowed funds are being utilized and the specific projects they are intended to support.