[size=14pt]N320bn required to transform Osun state - Commissioner[/size]
Written by Adewale Ajayi, Osogbo Monday, 05 December 2011

The Osun State government has said it would require the sum of N320 billion to transform the state and provide necessary infrastructure.

Speaking on how the state intended to realise the proposed amount, the state Commissioner for Finance Economic Planning and Budget, Mr Wale Bolorunduro , during a press briefing, noted that though, the state did not have that amount in its coffer, it could source for it through loan from the bank.

The commissioner explained that as of now, the state had N35 billion, and with that amount, it could approach the bank to leverage the amount on hand by seeking ten times the actual amount it had currently.

He explained that the N85 billion bond the state was seeking was part of efforts to raise the N320 Billion loan.

According to him, with that amount, capital development could be brought to every part of the state.

He explained that the road construction the state would embark on included: Gbongan to Akoda, Iwo to Osogbo; Gbonga Odeyinka; Orile –Owu; Erimo to Oke Resi, stressing that the contractors who would handle the road project would be paid after the job had been completed.

Mr Bolorunduro added that the state government had resolved all financial crisis it had with its workers, just as he added that the state was equally rendering financial assistance to farmers in the form of commercial agriculture credit scheme.

He explained that to aid the transportation sector , the state would be providing finance to members of the National Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN) so that they could acquire buses, just as it said through cooperative, it would be providing loan to mini bus operators in the state.

http://www.tribune.com.ng/index.php/news/32258-n320bn-required-to-transform-osun-state-commissioner

States tend to need the FG to underwrite the sums they wish to borrow. The reason being that they produce zero revenue and get all sustenance from Abuja.
This one could be a tough one though since Aregbesola openly rejected the authority of the Vice President. The recent FRCN action might pale into insignificance as Aregbe's costs run into billions if total payback is demanded.

My bet is that Osun will run into a financial mess.