Op-Ed

Osun Debt, IGR Are Now Tools For 2026 Cheap Politics And Propaganda

ByGuest Writer

PublishedJuly 15, 2025

By Inwalomhe Donald

Ogbeni Rauf Aregbesola as Governor of Osun State raised the state’s Internally Generated Revenue from N300 million to N1.6 billion monthly. Osun state was raking in N300 million when he took over government in 2010. Aregbesola identified human capacity building and empowerment as effective ways to combat poverty in the country, he stated that a nation who intends to fail the moment its government’s policies and programmes are not targeted at empowering its citizens.

Governor Adeleke who is decamping to APC ought to have buried his heads in shame and apologise to the people of Osun State for series of anti-masses programmes and policies that have resulted in the current national economic crisis being experienced by all Nigerians. Let critics talk about Osun IGR when Aregbesola was governor. Governor Adeleke should focus on the first 18 months of President Bola Tinubu’s administration (July 2023–December 2024), the budget deficit grew to N22.37 trillion, a 74.6% increase from the previous period.

Let Governor Adeleke focus on President Bola Tinubu who has requested the National Assembly’s approval to secure fresh foreign loans amounting to about $24.14b Loans which to Nigerians will not transform the manufacturing sector in Nigeria. It is not a new argument that these loans to Nigeria will not bring good institutions, infrastructure, human capital and technology. The loans will not drive manufacturing-led growth in Nigeria.

This is another debt diplomacy that President Tinubu has introduced. President Tinubu and National Assembly should not drive Nigeria into bankruptcy. The new borrowing plan represents the new face of debt diplomacy in Nigeria. Please Governor Adeleke should advise President Tinubu.

As a secret APC member, Governor Adeleke ought to have buried his head in great shame in view of the numerous anti-masses programmes and policies foisted on Nigerians during their 10-year APC misrule, which have resulted in the current harsh economic crisis, huge debts being experienced by all Nigerians at the moment,

As the people of Osun State warm up for 2026 electioneering campaigns for governorship election, cheap propaganda about Osun debt thrives and make waves in the print, electronic and social media. Critics do not mention Osun Internally Generated Revenue.

The Osun debt issue is more political than economic because of the eventual revelation that the state’s debt portfolio falls far short of what the opposition had told the media.

The opposition told us and still telling us that Governor Aregbesola borrowed more than N300 billion naira but the Nigeria Extractive Industries Transparency Initiative (NEITI), revealed that the debt burden of the 36 states of the Federation rose to over N3.342 trillion, as at 2016. Also, (NEITI) Review shows debt profile and a drastic drop in the revenue profile of most states of the federation. NEITI did not accuse Governor Aregbesola of borrowing N165 billion from 2010 to date and it has not accused Aregbesola of borrowing beyond the capacity of Osun Internally Generated Revenue.

What NEITI did was to review Osun State debt holistically from 1991-2016. I want to correct an erroneous impression about Osun Debt, which critics have accused former Governor Aregbesola of borrowing beyond the capacity of Osun Internally Generated Revenue. Osun State was part of old Oyo State that took loans from Paris and London Club of creditors. Osun State paid part of the interest for the loans. This was the rationale behind the benefits Osun State was getting from Paris Club refund. Critics should know that Aregbesola did not go to Paris Club to borrow money. It is wrong to accuse Governor Aregbesola of borrowing N165 billion because a larger percentage of the debt was inherited.

Those who criticize Aregbesola on debt are playing politics of 2026 election in Osun State. The people of Osun State are overwhelmed and satisfied with the performance and developmental strides of Governor Aregbesola. The people have rejected the politicisation of Osun State debt that started from the creation of Osun State in 1991. The people have realized that Osun debt has now become a tool for cheap propaganda in the hands of critics in Osun State as we approach 2026 governorship election because Osun State is benefitting from Paris Club refund, even when the state was not created when Nigeria took loan from Paris and London Club of creditors.

Osun’s debt is justified and proportional to the rapid infrastructure and economic development, which proved an undeniable answer to those playing politics with the state’s debt profile. After more than six years of historic growth, Governor Aregbesola worked by achieving high growth as part of a broader effort to shift from a consumer-driven economy to a manufacturing-based economy. This prompted concerns from critics who think that the acceleration is too sharp. Osun’s economic growth for the past six years is the highest since 1991.

There’s also positive evidence that Osun Debt under Aregbesola was economically relevant. In the face of dwindling state resources, Governor Aregbesola took upon himself some ambitious, near impossible tasks and turned them around. Osun roads: Osogbo East by-pass project, AbdulKareem Adebisi Akande Trumpet Interchange Bridge linking the Ibadan-Ife Expressway with the new Omoluabi Motorway (old Gbongan-Osogbo Road) and others are obvious examples.

There is also credible evidence that the state was a viable centre for global investment hub and other projects. In Osun State, the Model for road development is comprehensive and it encompasses the full complement of the road infrastructure including walkways, side drains, pavements, green areas, green median for the dualized roads and street lights. These are innovations that have dramatically changed the landscape of Osogbo the State Capital and other major towns in the State.

It is wrong to accuse Governor Aregbesola of borrowing beyond the capacity of Osun Internally Generated Revenue because Aregbesola raised the Internally Generated Revenue from 300 million naira monthly to 1.6 billion naira monthly in the past 13years.

Also, Osun debt was within threshold, it means among nations of the world, Osun set targets or limits for itself. That limit is usually domesticated against the gross domestic product. The volume of Osun domestic debt did not exceed 40 percent of its GDP. Having noted that figure; the Debt Management Office (DMO) in Nigeria has set a limit for Nigeria (self-imposed limit) of 25 percent, despite the fact that the acceptable limit is 40 percent. Nigeria sets a lower bar. DMO wants to pull Nigeria back if we hit 25 percent of our GDP. Nigeria has just hit 20 percent. So, in terms of ratio, Osun is doing very well.

Under Governor Aregbesola, there was growth in Osun economy and there are corresponding receipts: the economy is active; commerce, industry, employment and tax revenue have increased in Osun. There are several ratios that lend Osun to remain within threshold of borrowing and that has to do with Osun tax revenue to GDP ratio. The tax has increased as businesses are doing well; more people are gainfully employed, and they pay taxes. The companies are doing well, they pay taxes so the Internally Generated Revenue which has increased from N300 million monthly before Aregbesola came to power to N1.6 billion naira monthly as at 2017.

It is true that past and present chief executive public officers of local, state and federal governments in Nigeria have been running on deficit budgets which have led to huge debts. As far as the debt of Osun State is concerned, the fact is that Osun has always had debt since 1991. Her population is growing and for a long time since 1991she has run deficit budgets to cater to the needs of that growing population.

Governor Aregbesola has not borrowed beyond the capacity of Osun’s internally generated revenue and he has met existing debt Obligations from Osun allocations, for repayment of the debt. Governor Aregbesola met monthly recurrent expenditure of N6.59 billion naira and monthly generated revenue including federation account of N2.95 billion naira. He met a revenue deficit of more than N4 billion naira.

Critics should educate Nigerians on monthly revenue deficit of N4 billion naira in Osun State. On assumption of office Aregbesola made several attempts in determining the true position of Osun State’s Debt Obligations. Osun has on record the result of the various attempts at reconciliation starting with the reconciliation of obligations to Paris Club Debt in January 1992, Reconciliation of Loan – on-Lent and Rescheduled Loans in February 1995 and other efforts in 2001, 2005 and 2007.

By contrast to those who left Osun state in ruins, Aregbesola was the first Governor to have launched a RESCUE AGENDA for a state that was moribund when he came to the helm of affairs more than six years ago. There is hardly any family in Osun State today that has not been directly affected by the Aregbesola administration’s projects, RESCUE AGENDA such as O’YES, O’REAP, O’CLEAN, O’SCHOOL and attempts to turn the state into the economic hub of the Southwest.

Governor Aregbesola has introduced in developing Nigerian educational system: the concepts of OSUN SUKUK FUND FOR EDUCATION AND OSUN SCHOOL FEEDING PROGRAMME that every Nigerian must study and cherish. The Osun State HGSFHP, now known as Osun Elementary School Feeding and Health Programme (O-MEALS), commenced as apilot programme of the Home Grown School Feeding and Health Programme (HGSFHP) introduced through the Universal Basic Education (UBE) 2004 Act.

Inwalomhe Donald can be reached via inwalomhe.donald@yahoo.com

The opinions expressed in this publication are solely those of the author. It does not represent the editorial position or opinion of OSUN DEFENDER.