The All Progressives Congress (APC) in Osun State on Tuesday alleged that the state government is planning to secure a loan of N300 billion by using the 30 local government areas as collateral.
The opposition party made the claim in a statement issued by its spokesperson, Kola Olabisi.
According to the party, it gathered that Governor Ademola Adeleke and members of his cabinet recently met with senior career officers across the local government councils to discuss the proposed borrowing.
The APC alleged that each of the 30 local government councils in the state was being considered as collateral for the N300 billion loan.
It further claimed that assurances were allegedly given that cooperative senior career officers in the councils would be rewarded for their roles.
The party insisted that there was no justifiable reason for the state government to seek such a facility using local government areas as collateral, warning that the move could plunge the state into unnecessary debt that future generations might have to repay.
It therefore called on stakeholders to condemn what it described as an attempt by the Adeleke administration to use local government councils as collateral to secure about N10 billion per council, amounting to N300 billion in total.
The party also argued that the move would contradict the financial autonomy granted to local governments by the Supreme Court of Nigeria.
The APC cautioned banks and financial institutions that might be involved in the alleged transaction to avoid engaging in any illegal arrangement, stressing that the state government does not have the authority to interfere with the finances of local governments.
The party further maintained that the alleged borrowing plan would amount to an unlawful financial arrangement and could violate provisions of the Debt Management Office Act 2003, which requires certain approvals before local governments can obtain such loans.
However, the state government dismissed the allegation. The spokesperson to the governor, Olawale Rasheed, accused the APC of spreading unfounded claims in an attempt to divert attention from what he described as the party’s alleged involvement in the diversion of about N250 billion belonging to local government councils in the state.
Rasheed said the Adeleke administration had no plan to obtain any N300 billion loan and described the allegation as baseless.
He also accused the APC of unlawfully occupying council secretariats and diverting local government funds for political purposes, adding that those involved would face both legal consequences and political backlash from voters in the state.
According to the governor’s aide, the administration of Adeleke remains focused on addressing financial, infrastructural and social challenges inherited from the administration of former governor Gboyega Oyetola. NAN
