Osun State Debt Profile: APC Lawmakers Engage in Heated Altercation with PDP Senator over $20 Million World Bank Grant

Strategic Insights -

Nigeria's Osun State has been embroiled in a heated controversy surrounding its rising debt profile and the utilization of a $20 million grant received from the World Bank. Federal lawmakers from the state's All Progressives Congress (APC) caucus have clashed with the sole senator from the Peoples Democratic Party (PDP), Francis Fadahunsi, over the state's economic viability and debt repayment capacity. The APC caucus has accused Fadahunsi of "scare mongering" and attempting to create unnecessary conflict, while the senator maintains that the state is insolvent and unable to borrow more.

Key Takeaways:

  • The Osun State debt profile has surpassed N170 billion, ranking it as the sixth most indebted state in Nigeria.
  • The state's economic viability is being questioned due to its high debt burden.
  • The APC caucus claims that the $20 million World Bank grant has been spent on rehabilitating and equipping 332 Primary Health Care Centres (PHCs) across the state, including in Fadahunsi's area.
  • Senator Fadahunsi disputes this claim, stating that the grant was not being utilized transparently and challenging the APC caucus to provide details of contracts awarded for the PHCs and the equipment and drugs purchased.
  • The APC lawmakers have accused Fadahunsi of attempting to undermine the state's progress and progress.
  • The Osun State Government has reportedly cut down its 2020 budget to N82 billion due to financial realities stemming from the COVID-19 pandemic.
  • The state government has also transparently audited its financial records quarterly and annually.

Statistics:

  • Osun State's debt profile has surpassed N170 billion.
  • The state has 332 Primary Health Care Centres (PHCs) that have been rehabilitating/quipped using the $20 million World Bank grant (315 have been rehabilitated, with 256 already fully equipped and functioning).
  • 47 PHCs have been inaugurated in Fadahunsi's Ljesa area alone.
  • 120-bed wards and 30 units of doctors' quarters are being constructed at the Asubiaro Specialist Hospital, Osogbo.
  • The Ejigbo General Hospital has been rehabilitated and revitalized, and is equipped with modern equipment.

Sources:

  • Nwanne, B. (2020). Osun APC Lawmakers Clash with Fadahunsi over World Bank Grant. Premium Times.