Governor Ademola Adeleke, Osun State
The Osun State chapter of the All Progressives Congress (APC) has alleged that the state government is planning to obtain a N300 billion loan using the 30 Local Government Areas (LGAs) in the state as collateral.
In a statement released on Tuesday by the party’s spokesperson, Kola Olabisi, the APC claimed it had gathered information that Governor Ademola Adeleke and members of his cabinet recently met with senior career officers of the local councils, where the alleged plan to secure the loan was discussed.
According to the opposition party, each of the 30 local government councils would serve as collateral for the proposed loan, which it claimed would amount to about N10 billion per council.
The APC also alleged that assurances were given that the senior cooperative career officers in the councils would be rewarded for their roles in the arrangement.
The party argued that there was no justifiable reason for the state government to obtain such a large loan, warning that the move could plunge the state into heavy debt and burden future generations with repayment obligations.
It further urged stakeholders to condemn what it described as an attempt by the Adeleke-led administration to use local governments as collateral, especially in light of the Supreme Court ruling granting financial autonomy to local government councils.
The APC also warned financial institutions that might be involved in the alleged deal against engaging in what it termed illegal actions, stressing that local governments cannot secure such loans without the approval of the Federal Minister of Finance, the Accountant-General of the Federation, and the executive councils of the respective LGAs, as stipulated by the Debt Management Office Act 2003.
However, the Osun State Government has strongly denied the allegation.
Responding to the claim, the spokesperson to Governor Adeleke, Olawale Rasheed, accused the APC of attempting to divert public attention from what he described as the alleged hijacking of about N250 billion belonging to local governments in the state.
Rasheed insisted that the Adeleke administration has no plan to obtain a N300 billion loan, describing the opposition’s allegation as a baseless rumour.
He also accused the APC of illegally occupying local government secretariats and diverting council funds, adding that those involved would face both legal and electoral consequences.
According to him, the current administration is focused on addressing fiscal and infrastructural challenges inherited from the previous government and has no intention of engaging in what he described as questionable financial dealings.
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