N115.9bn debt, worst in Oyo’s history – Seyi Makinde

Oyo State Governor, Senator Abiola Ajimobi.

A former gubernatorial aspirant , Engineer Seyi
Makinde , has blamed the high debt profile of
Oyo State on the profligacy of the current Oyo
State administration .
In a statement released on Sunday by
Makinde’s media office on a recent publication
by the Bureau of Statistics, which put Oyo
States’ domestic debt at N115. 9 bn, Makinde
said Ajimobi’s second term is plagued by an
appetite for domestic debt and high recurrent
expenditure , which may plunge Oyo State to
into economic paralysis, if not checked.
The statement, quoting the Debt Management
Office records, said Oyo State owed N4. 8 bn
domestic debt in 2011 when Governor Ajimobi
took over . This has increased by more than
2000 percent within five years , while external
debt over the same period reduced by just 9
percent from $ 78 m to $71 m .
“ The crave for domestic debt by this
administration must be the worst in the history
of our dear state , ” Makinde said , “ but what
should worry any patriotic citizen of Oyo State
is that the current debt value may have
doubled by the end of 2017 because the
government would have to borrow at least,
approximately N100bn , to fund the 2017 budget
over which we raised alarm some months ago
due to the unrealistic targets and spending . ”
He noted that debt is not particularly bad if
borrowed fund is wisely channelled towards
revenue – driving projects and infrastructure
projects that yield economic productivity . “ This
is where the current administration failed
woefully , always throwing money at problems
without well thought- out solutions , impact and
outcomes, ” he said .
“ My policy team has carried out a profile of
Oyo State and we have come to the conclusion
that the state – with a prime place in history ,
large arable land, presence of education and
research centres – can become the most
attractive place to live, visit and work in
Nigeria . Our assessment also showed that the
resources that have accrued to this
administration were enough to steer the state
in this direction.”
Makinde said the“ danger that lies ahead for
Oyo State” requires a more innovative solution
under the guide of focused governance .
He , therefore, advised “ that the good people of
Oyo State must be thoughtful in electing the
next leadership which must be one with the
vision and passion to turn around the fortune
of the state. It is almost certain that the current
government will leave Oyo State in a precarious
state and it will be a grave mistake to support
the continuity of such.”

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