Again, Omisore, Akinwusi, Osun Govt Fight Over State’s Debts

A report released by Fiscal Responsibility (FRC) which declared
the debt portfolio of Osun State as having gone through the roof,
in contradiction to its gross revenue has, again, set some
stakeholders and the current administration in the state on a
collision course.

The report had listed Osun, Lagos and Cross River states as
having debt portfolios that exceed their gross revenues by 480 per
cent.

The report, published earlier in the week by the federal agency,
put the state’s consolidated debt and gross revenues at 626.25 per
cent and its consolidated debt and net revenue at 286.14 per
cent.

The stakeholders, among whom are a former Head of Service (HoS)
in the state, Mr Sunday Akinwusi and a former deputy governor of
the state and erstwhile chairman, Senate Committee on
Appropriation, Senator Iyiola Omisore, contended that the enormity
of the debt and the implication of the FRC’s report on the economy
of the state were unfavourable to the social and economic
well-being of the state, despite the sustainability claims by the
Debt Management Office (DMO).

However, the state government maintained that the report of the
FRC was obsolete, saying a critical look at the data and table
provided by the commission showed that the report was limited to
2016, just as it failed to take into consideration deductions and
payments made by the state in respect of its debts.

Speaking on the report, Akinwusi said, “I want to say that truth
is very constant. When I raised the alarm about the finances of
this government about four years ago, they labelled me as a liar.
That is why I said that I demand a public apology from this
government. And I must tell you that government had committed this
state for the next 25 years or more for what they have done.

Court remands man in prison for allegedly killing his Police
officers’ wife in Osun

“When you want to borrow money, you have to have the capacity to
pay. The rule is that you cannot borrow in excess of 50 per cent of
your anticipated revenues. Now that they say we have overshot by
480 per cent, it shows that this government has committed unborn
generations to hardship and servitude for the next 25 years. That
is why I say any government that wants to come must be a very
serious one to put a lot of things right apart from what these
people have done today.”

Akinwusi added: “I want to challenge the federal government
agencies, too. They know all these things and are aware of these
conditionalities. Why are they not in a position to enforce them
before they allow everything to go haywire? The Federal Ministry of
Finance has all the means to monitor all the financial resources of
the state government.”

Also reacting to the report, Senator Omisore said: “Osun’s debt
stands at 947.68 per cent and that is the real figure, highest in
Nigeria since independence. Fiscal Responsibility Commission’s
guidelines stipulate that the debt status of any state should not
exceed 50 per cent of the statutory revenues in the previous 12
months.

“Being the highest debtor in Nigeria since independence,
followed by Lagos though with high IGR, Osun’s direct Irrevocable
Standing Payment Order (ISPO) against FAAC is high, i.e.,
Aregbesola has mortgaged our future and that of our children till
2048.”

But the state Commissioner for Finance, Mr Banji Oyebamiji,
disagreed that there was any cause for alarm as regards the
finances of the state, describing the report as being inconsistent
with realities.

“I think that report is very obsolete. If you read the report,
it was credited to 2016, obtained in Abuja and I strongly believe
that the report is obsolete. Let me tell you while I am not
disputing this report, in reference to Debt Management Office in
Abuja. Several times, the office said Osun State debt is
sustainable and serviceable. So, there is no problem at all
regarding that.

“It is not debatable. I would rate it as a credible credit.
People in Osun can match the debt with physical infrastructural
developments in our state and our people are happy to witness these
infrastructural developments, which have never been witnessed in
Osun State. People outside can come and see what we are talking
about. Beyond that, we have been servicing these debts and I am
happy to tell you today that what we have on ground is something to
write home about,” Oyebamiji submitted.

A report released by Fiscal Responsibility (FRC) which declared
the debt portfolio of Osun State as having gone through the roof,
in contradiction to its gross revenue has, again, set some
stakeholders and the current administration in the state on a
collision course.

The report had listed Osun, Lagos and Cross River states as
having debt portfolios that exceed their gross revenues by 480 per
cent.

The report, published earlier in the week by the federal agency,
put the state’s consolidated debt and gross revenues at 626.25 per
cent and its consolidated debt and net revenue at 286.14 per
cent.

The stakeholders, among whom are a former Head of Service (HoS)
in the state, Mr Sunday Akinwusi and a former deputy governor of
the state and erstwhile chairman, Senate Committee on
Appropriation, Senator Iyiola Omisore, contended that the enormity
of the debt and the implication of the FRC’s report on the economy
of the state were unfavourable to the social and economic
well-being of the state, despite the sustainability claims by the
Debt Management Office (DMO).

However, the state government maintained that the report of the
FRC was obsolete, saying a critical look at the data and table
provided by the commission showed that the report was limited to
2016, just as it failed to take into consideration deductions and
payments made by the state in respect of its debts.

Speaking on the report, Akinwusi said, “I want to say that truth
is very constant. When I raised the alarm about the finances of
this government about four years ago, they labelled me as a liar.
That is why I said that I demand a public apology from this
government. And I must tell you that government had committed this
state for the next 25 years or more for what they have done.

Court remands man in prison for allegedly killing his Police
officers’ wife in Osun

“When you want to borrow money, you have to have the capacity to
pay. The rule is that you cannot borrow in excess of 50 per cent of
your anticipated revenues. Now that they say we have overshot by
480 per cent, it shows that this government has committed unborn
generations to hardship and servitude for the next 25 years. That
is why I say any government that wants to come must be a very
serious one to put a lot of things right apart from what these
people have done today.”

Akinwusi added: “I want to challenge the federal government
agencies, too. They know all these things and are aware of these
conditionalities. Why are they not in a position to enforce them
before they allow everything to go haywire? The Federal Ministry of
Finance has all the means to monitor all the financial resources of
the state government.”

Also reacting to the report, Senator Omisore said: “Osun’s debt
stands at 947.68 per cent and that is the real figure, highest in
Nigeria since independence. Fiscal Responsibility Commission’s
guidelines stipulate that the debt status of any state should not
exceed 50 per cent of the statutory revenues in the previous 12
months.

“Being the highest debtor in Nigeria since independence,
followed by Lagos though with high IGR, Osun’s direct Irrevocable
Standing Payment Order (ISPO) against FAAC is high, i.e.,
Aregbesola has mortgaged our future and that of our children till
2048.”

But the state Commissioner for Finance, Mr Banji Oyebamiji,
disagreed that there was any cause for alarm as regards the
finances of the state, describing the report as being inconsistent
with realities.

“I think that report is very obsolete. If you read the report,
it was credited to 2016, obtained in Abuja and I strongly believe
that the report is obsolete. Let me tell you while I am not
disputing this report, in reference to Debt Management Office in
Abuja. Several times, the office said Osun State debt is
sustainable and serviceable. So, there is no problem at all
regarding that.

“It is not debatable. I would rate it as a credible credit.
People in Osun can match the debt with physical infrastructural
developments in our state and our people are happy to witness these
infrastructural developments, which have never been witnessed in
Osun State. People outside can come and see what we are talking
about. Beyond that, we have been servicing these debts and I am
happy to tell you today that what we have on ground is something to
write home about,” Oyebamiji submitted.