Osun APC, govt clash over alleged N300bn loan plan

The All Progressives Congress (APC) in Osun State and the state government have traded accusations over an alleged plan by the administration of Governor Ademola Adeleke to secure a N300 billion loan using the state’s 30 local government councils as collateral.

The opposition party claimed it uncovered a plot by the Adeleke-led government to obtain the loan from Unity Bank Plc, an allegation the state government has strongly denied, describing it as a baseless attempt to divert attention from alleged financial misconduct involving local government funds.

In a statement issued on Tuesday, the Osun APC Director of Media and Strategy, Kola Olabisi, alleged that the state government convened a meeting at the State Secretariat in Abere with individuals it described as “illegal local government council chairmen” elected under the Peoples Democratic Party (PDP), alongside senior local government officials.

According to Olabisi, those invited included Heads of Local Government Administration (HLAs), Directors of Administration (DAs) and Heads of Finance (HFs) from all 30 local government areas and the area office.

He alleged that during the meeting, the state government disclosed plans to borrow N300 billion and proposed that each local government area serve as collateral for the loan.

Olabisi claimed that assurances were given that cooperative council senior career officers would be “handsomely taken care of” if the arrangement was executed.

The APC spokesperson questioned the rationale behind the alleged move, warning that such borrowing would plunge the state into unnecessary debt.

“There is no justifiable reason for the Adeleke-led government to deliberately and wickedly plunge the state into avoidable debts which unborn generations would be made liable to repay,” he said.

Olabisi also argued that the alleged plan would violate the spirit of the Supreme Court of Nigeria ruling granting autonomy to local government councils across the country.

He urged stakeholders and financial institutions to resist what he described as an illegal arrangement.

“The management of Unity Bank Plc should be mindful of the fact that states do not have authority over local government councils and that any such deal is illegal and not binding now or in the future,” he said.

Olabisi further maintained that the only recognised local government executives in the state were the APC