12-year APC rule responsible for high local, foreign debt, says Osun Govt

By Deborah Oladejo, Osogbo

The Osun State Government has attributed the state’s current high local and foreign debt levels to the 12-year rule of the All Progressives Congress (APC) Government.

The State Government also attributed the rise in the state’s debt service costs to the weakened national currency.

Responding to a National Bureau of Statistics (NBS) report that listed Osun as the tenth state with the highest debt service payments, the Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, clarified that the increase in monthly loan repayments for the state’s foreign loans is due to the devaluation of the Nigerian Naira, not new borrowing.

Alimi noted that all states in the federation, as well as the Federal Government, are subject to this issue, as foreign loan repayments depend on the prevailing exchange rate.

The statement read in part: “The NBS report, highlighted by opposition platforms, noted that: ‘Osun State, located in Nigeria’s southwest, is culturally known for the Osun-Osogbo Festival. In 2024, Osun recorded N3.4 billion in external debt service costs, up from N1.57 billion in 2023. This represents an increase of N1.83 billion, or about 116%.'”

“The public is kindly reminded that repayment on foreign loans is usually done based on the prevailing exchange rate of the local currency (Naira) to the US Dollar.

“It is also important to note that Osun State was plunged into high local and foreign indebtedness during the 12 years of APC governance in the state.

“As the repayment is done in line with the prevailing exchange rate, there is an increase in the Naira value of monthly loan repayments on the foreign loan portfolios of all the states of the federation.

“This inevitable increase is not unique to Osun; it applies to all the states and the Federal Government.

“The public is assured that the state’s financial management is responsible and sustainable, with no new indebtedness.”