Osun State Denies Plans for New Loan, Blames Exchange Rate for Increased Repayments
Osun State Government has issued a statement denying reports that it is planning to obtain a new loan. The statement, made by Kolapo Alimi, Commissioner for Information and Public Enlightenment, was in response to a report by the National Bureau of Statistics (NBS) which listed Osun State as number 10 among states with high debt service payments.
According to the NBS report, Osun State recorded N3.4 billion in external debt service costs in 2024, up from N1.57 billion in 2023, representing an increase of N1.83 billion or about 116 percent. Alimi attributed the rise in repayment to the prevailing exchange rate of the Naira to the United States Dollar.
The Commissioner explained that repayment on foreign loans is usually done based on the prevailing exchange rate of the local currency (Naira) to the US Dollar. He also emphasized that Osun State was plunged into high local and foreign indebtedness during the 12 years of the APC government in the state.
Alimi stressed that the increase in repayment is not unique to Osun State, but applies to all states and the Federal Government. He assured the public that the state’s financial management is responsible and sustainable without any new indebtedness.
The Osun State Government’s denial of plans for a new loan aims to clarify the situation and alleviate concerns about the state’s debt burden. As the government continues to navigate the complexities of foreign debt repayment, it is crucial to prioritize transparency and responsible financial management to ensure the state’s economic stability and growth.