Adeleke: Osun Foreign Loan Clarification on DMO Report

• Osun State Governor Ademola Adeleke denied taking secret foreign loans, calling claims "fake news."
• The denial followed a DMO report showing Osun State's external debt increased by $26.56 million to $101.70 million between December 2024 and June 2026.
• Adeleke clarified that the increase was due to a $25.8 million loan for the Rural Access and Agricultural Marketing Project taken by the previous administration, which matured by December 2025.
• He noted four other similar loans from the past administration are also maturing and will soon appear in debt reports.
• The current administration maintains it has not taken any external loans and commits to full transparency for any future borrowing.

Governor Adeleke provided a detailed clarification regarding the reported surge in Osun State's external debt, asserting unequivocally that the increase was not due to any new loans taken by his administration.

Osun State Governor Ademola Adeleke has publicly refuted allegations of secretly acquiring foreign loans since assuming office, firmly dismissing such claims as unfounded and "fake news." This denial was issued through a statement from his spokesperson, Olawale Rasheed, obtained by PUNCH in Osogbo on Tuesday. The governor's response came in the wake of a recent publication by Nigeria's Debt Management Office (DMO), which detailed a significant increase in Osun State's external debt, prompting scrutiny and public discussion regarding the state's financial management practices.

According to the DMO's external debt stock report, which was current as of June 30, 2026, Osun State's total external debt reached $101.70 million. This figure represents a substantial rise from the $75.14 million recorded on December 31, 2024, indicating an increase of approximately $26.56 million over an eighteen-month period. The report further specified that the state's multilateral debt stood at approximately $94.15 million by June 2026, while its bilateral debt was approximately $7.55 million during the same timeframe. This data from the DMO formed the basis for the accusations that Governor Adeleke's administration was secretly incurring new foreign liabilities, which he has now moved to clarify.

Governor Adeleke provided a detailed clarification regarding the reported surge in Osun State's external debt, asserting unequivocally that the increase was not due to any new loans taken by his administration. He explained that the $25.8 million reflected in the DMO's figures pertains to an external loan that was originally secured by the previous state government. This particular loan was specifically designated for the Rural Access and Agricultural Marketing Project (RAAMP) within Osun State, highlighting its historical context.

The governor further elaborated that the repayment period for this specific $25.8 million loan had matured by December 2025, which is precisely why it subsequently appeared in the Debt Management Office's report as part of the state's current liabilities. He also cautioned that the state's external debt stock might see further increases in the near future. This is because there are four additional external loans, also initiated by the preceding administration, whose repayment obligations have similarly matured and are expected to be reflected in forthcoming DMO reports. This explanation aims to clearly distinguish between inherited financial obligations and the current administration's fiscal decisions.

Emphasizing his administration's unwavering commitment to sound financial governance, Governor Adeleke affirmed that his government has not secured any external loans since taking office. He underscored that this approach is an integral component of his broader strategy for the sustainable management of Osun State's valuable resources. The governor stressed that should his administration ever decide to pursue foreign financing for any reason, such a process would be conducted with complete openness to the public, adhering strictly to due process and ensuring utmost transparency at every stage.

Governor Adeleke also took the opportunity to criticize those who have accused his administration of secretly obtaining foreign loans, suggesting that such accusations stem from a fundamental lack of understanding regarding public finance. He described these individuals as "ignorant of the statutory procedures for applying for and accessing foreign loans," highlighting the established protocols and legal frameworks involved in securing international financing for state projects. This stance reinforces the administration's position on public finance transparency and accountability, while also educating the public on the complexities of state debt management.

This article clarifies the source of an increase in Osun State's external debt, attributing it to loans from the previous administration rather than the current one. Lawyers advising on public finance, state-level investments, or debt restructuring should note this distinction as it impacts the assessment of the current administration's financial policies and accountability for existing debt obligations. It highlights the importance of due diligence in understanding the historical context of state liabilities.

Source: Original reporting via PUNCH newspaper.