IBADAN—The Peoples Democratic Party, PDP,  in the South West has called on well-meaning Nigerians to warn the Action Congress of Nigeria, ACN, governed states not to plunge the zone into unnecessary debt saying the loans that they are accessing  may take about 50 years to repay.

Specifically, the opposition party in the zone alleged that two states in the zone-Osun and Ekiti states,  are now indebted to the tune of over N150 billion  with Ogun State on the verge of allegedly taking N100 billion bond.

Speaking through its National Vice-Chairman, South-West, Chief Segun Oni in statement by his media aide, Mr. Lere Olayinka, the party said except the governors in the ACN governed states were checked, people in the zone would have to face the dire consequences of the huge debt the ruling party would incur.

The party also called on the Central Bank of Nigeria, CBN, Security and Exchange Commission, SEC, and other financial clearing houses to put a stop to the rate at which the states are obtaining loans.

Describing the action as alarming, Oni said: “This regime of taking loans and bonds and giving promissory notes on multi billion naira contracts to execute questionable projects like building new government houses” must not be taken with levity.

Giving the breakdown, he alleged that Osun State alone now owes over N120 billion, Ekiti is owing over N30 billion “planning to take another N30 billion while Lagos State government was said to have, as at June 30, 2012, accumulated an external debt profile of more than half a billion dollars, despite having a monthly revenue of about N23 billion.

“We wish to alert all well-meaning Yoruba sons and daughters on the dangerous trend of obtaining frivolous loans by the ACN governors in the South-West, and call on the CBN and other financial regulatory agencies to put a stop to it. As at today, Osun State has taken N60 billion bond, N25 billion loan from the First Bank, N17.8 billion from Infrastructure Bank (to construct Oshogbo-Kwara Boundary road), N17.5 billion road project (six inter-township roads) to RATCON on contractor financing and another N7.6 billion for Ilesha and Oshogbo township roads to RATCON on contractor financing. Contractor financing means you are borrowing from your contractor at a cost higher than even bank term loans, “ he said.

“In Oyo State, a 4km road project around Challenge area in Ibadan was awarded for N5.7 billion to Hitech Construction Company, allegedly owned by ACN leader, Bola Tinubu on contractor financing basis while the same practice is going on in Ogun State, and one begins to wonder where the States incomes (federal allocation and Internally Generated Revenue) are going into, he alleged.”

PDP better be mute on issues like this. Going through the previous record, PDP's former administration in the West put the region at the apex in debtors list. Especially, Ogun and Oyo. Lagos is capable of solving her debt issue anytime. Oyinlola, the former governor of Osun and presently PDP's national secretary borrowed 18billion Naira on worthless things, isn't that alarming enough?
http://www.punchng.com/news/lagos-kaduna-criver-ogun-oyo-top-foreign-debtors-list/

TINUBU awarded a 4km road for 5.7billion in challenge road, Oyo state? Hmmmmmmm, now I see why this man dey red eye.

These people appear to be worst than PDP. How can you award a four kilometer road for such an amount? AC THIEVES

They are just busy clowning., cos it's funny

Hmmmmmm, ACN too? Hypocrites

Israelmossaic: These people appear to be worst than PDP. How can you award a four kilometer road for such an amount? AC THIEVES

was it not the same segun oni that claimed the PDP had evidence that state of osun wanted to secede from nigeria?i wonder how anyone takes the words of those fools seriously.when he was governor of ekiti state,what project did he execute?i was doing my youth service in ekiti while he was governor and i recently went there on a visit and i can testify at the turnaround.states like ekiti receive a paltry sum as allocation and since they cant depend on IGR,their only option os to take loans.the issue should be how judiciously the loans are utilised and as forr ekiti and osun,they are doing a good job