Peoples Democratic Party, PDP, Osun State chapter, yesterday called on Governor Rauf Aregbesola to explain the sudden rise in Osun’s foreign debt portfolio from zero in 2010 to N70 billion as at April this year.
The party, in a statement issued in Osogbo by its spokesperson, Prince Diran Odeyemi, said the latest report released by National Bureau of Statistics, NBS, which covers finances of states till April this year, confirmed earlier position of the party that Osun had been sucked dry by the present administration.
NBS in its latest report covering state’s foreign debt portfolio till April ending, placed Osun on 7th position, with Lagos taking the lead with N377.216 billion.
Following Lagos on the list is Cross Rivers State with an external debt profile of N166.407 billion. Kaduna, Akwa Ibom, Oyo and Katsina States owed foreign creditors N124.438 billion, N80.649 billion; N79.655 debt and N74.033 billion respectively.
The statement further reads: “From findings, Osun had fully paid up the loan obtained from Paris Club to finance Ede, Ejigbo and Ilesa water projects by late Chief Bola Ige of old Oyo State, as at the end of tenure of Chief Bisi Akande’s tenure.
“Also, Debt Management Office, DMO, also throughout the tenure of a PDP governor between 2003 and 2010, had continued to deduct the loan from monthly allocation of the state, which really affected its accruals, until the same administration made efforts to ascertain the status of the loan and it was discovered that it had been fully repaid as at 2002.
“Before PDP exited office, we had also commenced process to get refund of the over deducted monies running to several billions of naira. From fundings, we also discovered that DMO had not only paid the deductions, interest was also added.”
The party said it demanded explanation as to why a state handed over with “no foreign debt burden and mere N8 billion domestic debt portfolio in November 2010 will, at the moment, be hovering on the ditch of bankruptcy. Rather than resorting to name calling, Osun will expect clear explanation on this”.

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