Osun APC accuses Adeleke of debt mismanagement; govt dismisses claims

By Deborah Oladejo, Osogbo

The Osun State chapter of the All Progressives Congress (APC) has criticized Governor Ademola Adeleke’s administration, accusing it of accumulating massive debts and engaging in financial mismanagement.

Speaking at a press conference on Monday, the party’s Director of Media and Information, Chief Kola Olabisi, alleged that the Adeleke-led government secretly obtained loans totaling ₦10 billion in 2023. He claimed the state’s domestic debt profile had increased from ₦46.8 billion in 2022 to ₦55.3 billion in 2023.

Olabisi further disclosed:

“A closer look at the financial documents reveals that a new finance lease loan of ₦4.2 billion was obtained in 2023. In addition, the existing domestic debt of ₦705.6 million for the Ministry of Agriculture and Food Security rose to ₦2.9 billion. Similarly, a debt of ₦280.8 million under the Ministry of Rural Development and Community Affairs increased to ₦1.4 billion in 2023. The debt for the Ministry of Youths and Sports also escalated from ₦161.7 million to ₦1.02 billion. Altogether, additional loans to these three ministries in 2023 amounted to ₦3.92 billion.”

He added:

“To compound matters, the state has reportedly signed a $16 million foreign loan agreement, equivalent to ₦26.6 billion, for the ‘Nigeria for Women Project.’ This loan, signed by the state’s Commissioner for Finance and witnessed by the Accountant-General, is expected to be disbursed early next year.

However, the lack of transparency surrounding the project has fueled speculations that the loan, repayable over 30 years, may be diverted for the 2026 governorship election.”

Olabisi also accused the Adeleke administration of placing the state in a precarious financial position, citing a combined foreign loan acquisition of $51 million (₦81.6 billion, using an exchange rate of ₦1,600 to $1).

He stated:

“Information from the Federal Ministry of Finance indicates that Osun State accessed $20 million under the NG-CARES program, equivalent to ₦32 billion. Although the first phase of the NG-CARES program ended in June 2024, the governor has been reportedly misled into signing up for the second phase, called NG-CARES.

“This new phase involves a loan of $15 million, equivalent to ₦24 billion. The total amount for both phases of the NG-CARES facility is $35 million, or ₦56 billion.”

In a swift response, the spokesperson for Governor Ademola Adeleke, Mallam Olawale Rasheed, dismissed the APC’s allegations as baseless and false.Rasheed said:

“We are not surprised because the APC in Osun has nothing constructive to say anymore. They cannot fault us on service delivery or governance. Our administration has received commendations and awards for good governance across various sectors.

“They should act as a responsible opposition and acknowledge our achievements instead of peddling fake news. The allegations about loans are recycled falsehoods that we have repeatedly debunked.”

On the NG-CARES program, Rasheed clarified:

“How can you attribute NG-CARES, a World Bank initiative, to us? This is a federal project inherited from both former governors Aregbesola and Oyetola. It is not our initiative.”