Osun APC Accuses Adeleke of Plotting N300bn Loan Using LG Councils as Collateral

 

The Osun State chapter of the All Progressives Congress (APC) has accused Governor Ademola Adeleke of planning to secure a N300 billion loan by using the state’s 30 local government councils as collateral.

In a press statement issued on Tuesday, the Osun APC Chairman, Tajudeen Lawal, described the alleged plan as illegal, unpatriotic and capable of plunging the state into avoidable debt.

According to the party, the Adeleke-led administration allegedly convened a meeting on Monday at the State Secretariat in Abere with individuals it described as “illegal local government chairmen” elected under the Peoples Democratic Party (PDP), as well as key local government officials including Heads of Local Government Administration, Directors of Administration and Heads of Finance.

The APC claimed that during the meeting, the state government disclosed plans to obtain a N300 billion loan from Unity Bank Plc, with each of the 30 local government areas expected to serve as collateral for the facility.

The party further alleged that the proposed arrangement would amount to about N10 billion per local government area.

Lawal stated that the alleged move was part of what he described as ongoing attempts by the state government to regain control of local government councils despite previous court rulings.

He referenced earlier judgments by the Court of Appeal of Nigeria and the Supreme Court of Nigeria concerning the administration of local governments in the state, insisting that the APC-reinstated council chairmen remain the legally recognised executives in the councils.

The APC also urged the management of Unity Bank to exercise caution, warning that any agreement entered into with what it termed “illegal council officials” could be legally invalid.

According to the party, such a borrowing plan would violate provisions of the Debt Management Office Act 2003, which outlines conditions under which local governments can obtain loans.

The party called on stakeholders in Osun State to intervene and caution the governor against pursuing policies that could increase the financial burden on the state.

APC maintained that the alleged borrowing plan, if implemented, would saddle future generations with debt and undermine the autonomy of local government councils.

As of the time of filing this report, the Osun State Government had not issued an official response to the allegations.