The Osun State Government has attributed its high debt service payment to the devaluation of the Naira, dispelling rumours of new borrowing.
According to Commissioner for Information and Public Enlightenment, Kolapo Alimi, the increase in monthly loan repayment is a direct consequence of the nation’s weak currency.
“The apparent rise in debt service payment is not due to new borrowing, but rather a result of the Naira’s devaluation,” Alimi clarified.
“It is also important to put on record that Osun state was plunged into high local and foreign indebtedness in the 12 years of the last administration in the state.
“As the repayment is done in line with prevailing rate, there is an increase in the Naira value of monthly loan repayment on foreign loans portfolio of all the states of the federation.
“The inevitable increase, therefore, is not only peculiar to Osun, rather, it is applicable to all the states and the Federal Government.
“The public is assured that the state financial management is responsible and sustainable without any new indebtedness,” he added.
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