Osun State Government’s tax revenue from the Federal Accounts and Allocation Committee (FACC) ran out last month as a result of appropriate deductions by the federal government.
At the end of the last FAAC meeting, the state got a negative allocation of -375 million naira.
The negative allocation, it was learned, was a major fallout from the N200 billion loan secured by the Rauf Aregbesola administration from 2010 to 2018.
The sharp drop in the allocation, it was learned, was the result of the heavy subsidy from the Petroleum Motor Spirit (PMS), otherwise known as oil.
Aregbesola, who is currently home minister, served two terms as governor of Osun State.
Blueprint has collected from multiple sources that at last count, the administration led by Governor Adegboyega Oyetola has repaid around 72 billion naira of accumulated debt.
“A breakdown shows that in the first two years of the Oyetola administration, the state government paid N2.4 billion (monthly) of the loan secured by the previous administration.
“However, after paying N72 billion of the N200 billion loan, the FAAC deductions fell to N1.4 billion per month, thus amounting to N72 billion of the sum of the debt paid so far by the current government,” one of the sources said.
It was further discovered that since his arrival on board, Governor Oyetola has not borrowed any money (local or foreign) for the operation of his administration, including the payment of workers’ salaries.
However, our source further revealed that “With 1.45 billion naira being the actual allocation to the state from FAAC last month, the state went home with a negative of -385 million naira, implying that the sum would be deducted in the next allocation.
“This is in addition to the N1.8 billion originally to be deducted for servicing the loan obtained by the Aregbesola administration.”
Blueprint’s findings revealed that despite the huge debt profile incurred by the previous administration in the state, several projects undertaken by the administration were left unfinished with approximately 30 months of salary and pension arrears left. under the current government.
“Despite the negative stipend, Osun has since paid February salaries.”
Efforts by our reporter to get the state finance commissioner, Bola Oyebamiji, to talk about how February salaries were paid and other obligations fulfilled, proved fruitless.
But a senior government source, who spoke on condition of anonymity, said: ‘For Governor Oyetola, he has really put his dexterity and managerial acumen into running the affairs of the State in the midst of this heavy N200 billion over-indebtedness and other daunting challenges.
“It has been difficult no doubt, but we have a man who has really prepared for the challenges of governance. Oyetola is brutally cautious as governor. It blocked leaks and waste. Thinking outside the box, he had projected how to ensure wages would not fail over the next four years.
“He’s not one to make excuses and that’s why he puts the welfare of the workers first. Remember, he hasn’t borrowed a kobo since coming on board, yet this silent achiever is rolling out plans. Few governors who have found themselves in his shoes would resist the “temptation” to borrow as he does.
Govt a continuum – Help from ex-governor
Reacting to our story, the former governor’s media aide, Sola Fasure, said government is a continuum and Aregbesola’s successor inherited both assets and liabilities.
He said: “These are just allegations. The case is already in the public domain. There is no such thing as 200 billion naira. It is a false allegation. Some of the projects on which the debts were incurred, the federal government was reimbursing the state government.
“The state government got a refund from the federal government. A government will leave you with both an asset and a liability. When people talk about liability, ask them about assets. Aregbesola was gone four years ago now, both the asset and the liability is what they inherited.