Osun Govt insists APC plunged state into high indebtedness

By Ismail Azeez, Osogbo

The Osun State government has reiterated that the state’s current high levels of local and foreign debt are a legacy of the 12-year administration under the All Progressives Congress (APC).

This is in response to reports alleging high local and foreign indebtedness during the 12-year administration of the All Progressives Congress (APC). The government emphasised that recent increases in debt service payments are due to the devaluation of the Naira, not new borrowing.

According to a statement by Commissioner for Information and Public Enlightenment, Kolapo Alimi, the National Bureau of Statistics (NBS) report placing Osun among states with high debt service costs reflects a rise in foreign loan repayments.

The report highlighted that Osun’s external debt service costs surged to N3.4 billion in 2024 from N1.57 billion in 2023, marking a 116% increase.

Alimi explained that the rise in repayment amounts is linked to fluctuations in the Naira’s exchange rate against the US Dollar, rather than new debt accumulation. “Repayments on foreign loans are influenced by the prevailing exchange rate,” he stated.

The statement further clarified that the high level of debt was incurred during the APC’s tenure and noted that the increase in repayments is not unique to Osun but affects all states and the Federal Government due to currency devaluation.

The government assured the public of responsible and sustainable financial management, affirming that there has been no new indebtedness.