The prevailing culture of deceit within the Biodun Oyebanji-led government in Ekiti State, has consistently led to unnecessary lies being told to Ekiti people and ultimately plugging the people into poverty and misery.
In order to protect ourselves from potential lawsuits while continuing to expose any attempts to exploit the people of Ekitikete, I have made the decision to withhold the photographed copy of the State Assembly Document.
Instead, I’ll rely on the Freedom of Information Act request submitted to the Debt Management Office in Abuja to obtain a publicly acceptable version of the Bond Documents related to the loan obtained by the government of Ekiti State in September 2024. A loan facility to the tune of 39 billion naira, payable in 12 years, was applied for by the Governor Oyebanji-led administration.
The legislative procedure for approving loans/bonds is as follows: the governor’s letter of request for a loan is read in the chamber by the Speaker. The letter of request is transmitted to the Committee on Local and Foreign Debt. The committee receives the letter, sets a date, and summons the finance commissioner, BPP DG, and all heads of agencies factored in the loan.
The committee reports back to the Chamber, and the report is debated. The lawmakers decide whether to approve or not to approve.Sadly, none of the above stated steps or processes were followed. I do not know how all these happened in secrecy within hours of one night, under whatever guise. Evidence within the State Archive indicated that this government has indeed taken a loan facility in bond form to the tune of 39 billion naira, payable within 12 years.
Yet both the executive and the legislative arms publicly claim no loan was taken in the year 2024. An accusation doesn’t confer guilt. Ekiti people, will continue to watch whether the loan will be used for its stated intents; i.e. completion of the cargo airport, the flyover bridge and the ring road projects.
Consequently, the lack of scrutiny in the loan approval process is a recipe for disaster. The State House of Assembly appears to have abdicated its responsibility to ensure that the loans align with the state’s development priorities.
The recent #39billion loan, taken by the Oyebanji led administration in Ekiti State, comes on the heels of a #126 billion loan from the African Development Bank (AfDB) for the reconstruction of the so-called Ekiti Knowledge Zone.
Obviously, the state’s ability to repay these loans is uncertain. The economy of Ekiti State is largely dependent on federal allocations, which are subject to fluctuations. The state’s internally generated revenue is also limited, making it difficult to service the loans.The consequences of defaulting on these loans would be catastrophic.
The state’s credit rating would be severely damaged, making it difficult to access credit in the future. Moreover, the state’s infrastructure and human development projects would suffer, exacerbating the already dire socio-economic conditions in the state.Conclusively, the Ekiti State government must be cautious in its financial dealings.
The State House of Assembly must also live up to its responsibility of scrutinizing loan agreements. The people of Ekiti State deserve better, and it is the responsibility of their leaders to ensure that their future is not mortgaged.
