The Osun State government has clarified that the recent increase in monthly repayments for foreign loans is not due to new borrowing by the current administration.
In a statement issued on Tuesday in Osogbo and signed by Commissioner for Information and Public Enlightenment, Mr. Kolapo Alimi, the government explained that the heightened debt service payments are attributed to fluctuations in the exchange rate between the Naira and the US Dollar.
The statement came in response to a National Bureau of Statistics (NBS) report which ranked Osun as the 10th highest among Nigerian states for debt service payments. According to the NBS, Osun’s external debt service costs rose to ₦3.4 billion in 2024, up from ₦1.57 billion in 2023—a 116 percent increase.
Alimi emphasized that the increase in debt service costs is a widespread issue affecting all states and the Federal Government due to currency exchange rate impacts. He assured the public that the state’s financial management remains responsible and sustainable, with no new loans undertaken by the current administration.