Ogbeni Osun of debts! How Rauf Aregbesola Plunges Osun State Into Everlasting Debts

Apparently worried about the rate at which the Rauf Aregbesola’s All Progressives Congress (APC) government in Osun State has obtained loans from financial institutions, the Bankers Forum in the state has declared that no more loans will be granted to the government.

Sources revealed that the Bankers Forum met in Osogbo a few days ago and decided to place embargo on loans to Aregbesola’s government. The Forum further resolved that “any money that comes from anywhere to any of the banks should be seized and converted to loan repayment.”

The source, which refused to give further details on the meeting said, the events of last week (PDP rally) have further heightened anxiety of the bankers. Aregbesola had admitted borrowing N41 billion from the capital market, but failed to disclose the state’s indebtedness to First Bank, Zenith Bank, Infrastructure Bank, Sterling Bank, etc. The governor did not also mention the total amount he had forced each local council in the state to borrow, which sources put at N100 billion per local government, and the over N250 billion that he used contractors to borrow on behalf of the state. Sources revealed that the sum of N60 billion bond was raised from the capital market; N25 billion loan was taken from First Bank Plc; N2.5 billion from Sterling Bank (to be paid back with Sure-P funds at N100 million per month till 2016); and about N5 billion from Zenith Bank.

Apart from the above listed loans, listed below are mindboggling details of other frivolous loans taken by the state government in the last three years. First Bank Plc gave out a loan of N8.6 billion to Rauf Aregbesola as a governor. The purpose was to offset a loan collected from the United Bank for Africa (UBA) on March 9, 2011 payable within 72 months (six years).

First Bank Plc. also granted another N3.2 billion on July 30, 2011, payable within 72 months (six years) to fund road projects and other government expenditures. Wema Bank Plc. granted a whopping sum of N240 million, out of which N185 million had been refunded to fund a self-styled OYES-Tech programme in Osun State. The loan collected on November 17, 2012 is payable within 12 months.

Unity Bank Plc. also granted Aregbesola’s government another N390 million to take care of the MDG counterpart fund. Repayment was 12 months, starting from February 9, 2012 date of collection.

Another counterpart MDG fund from Unity Bank Plc. granted on February 9, 2012, payable within 12 months out of which N148,666,575.79 had been refunded. Next came Zenith Bank Plc loan, to fund another (RAMP) counterpart fund granted on 06/03/2012, a total of N166, 267,000. This is also payable within 12 months out of which the sum of N126,083,445.14 had been refunded.

Zenith Bank Plc. granted another N.1billion loan to fund a ISDP counterpart fund on March 09, 2012, payable within 12 months. First Bank Plc. also granted another N124.5 million loan to fund Adesoji Aregbesola’s ‘O’ Meal programme on April 11, 2012, refundable within six months out of which only N17,081,178.62 has been refunded.

Sterling Bank Plc also granted a loan of N350 million, which was collected on April 17, 2012, payable within 12 months. The fund was wasted on 2012 annual pilgrimages. The sum of N157,568,745.48 has just been repaid. Wema Bank Plc also released N650 billion to Aregbesola to acquire a block of 12 flats with 36 rooms plus boys quarters in Abuja for OSICOL. The fund was released on July 12, 2012, payable within 36 months (3 years) with only N27,704,350.08 refunded.

First Bank of Nigeria Plc. freely released another N.3 billion to Rauf Aregbesola, claiming it was to pay OBAFOOT Nig. Ltd for supplying motor vehicles on June 26, 2012, payable within 12 months. Only N69,729,080.53 has been refunded so far.

Another First Bank of Nigeria Plc. loan largesse to Rauf Aregbesola was given out on June 6, 2012, payable within 12 months. Of the N562 million collected to fund ‘O’ Uniform programme, only N106,972,949 has been refunded so far. First Bank of Nigeria Plc also granted another N273,299,754.40 to Osun State government to fund the 80 per cent of another supply of 100 units of pick-up vehicles, on May 25, 2012, payable within 36 months (3years) with just N7,591,659 repaid so far.

On June 27, 2013, First Bank Plc. released another N.5 billion to Aregbesola’s government to take care of APC’s critical government expenditures. This is payable within four months with as much as N371,302,627.22 being refunded. Sterling Bank Plc. released N2 billion on August 1, 2013 to take care of Commercial Agriculture Credit Scheme, payable within 36 months (3 years). Nothing has been refunded so far.

First Bank Plc doled out another N188 million to Aregbesola for the supply of another set of motor vehicles by OBAFOOT Nig. Ltd on July 5, 2012 and payable within 12 months. Only N44,116,990.32 has been refunded.

The same First Bank Nig Plc. again released N200 million to Aregbesola on July 10, 2012, payable within 12 months, to take care of the critical aspects of Aregbesola’s expenditures. Only N48,043,859.90 has so far been refunded.

Behaving like father Christmas, First Bank Plc. released another N140,555,555.51 to Aregbesola on July 27, 2012, payable within 12 months. It was for the supply of motor vehicles by OBAFOOT Nig. Ltd. A sum of N21,331,581.64 only has been refunded till date.