Debt Servicing Takes Center Stage in Oyo State as Governor Makinde Spends N20 Billion in 9 Months
A review of Oyo State's budget performance document for the third quarter of 2024 reveals that the state spent a total of N20 billion on debt servicing between January and September 2024.
The breakdown shows N6.5 billion was allocated to foreign debt servicing, while N13.9 billion went toward domestic debt obligations. This expenditure on debt servicing surpasses the funds allocated to several critical infrastructure projects during the same period.
For instance, the review highlighted that no funds were spent on constructing or providing hospitals and health centers during the nine months under review. Spending on public schools stood at only N2.6 billion, while construction and provision of infrastructure accounted for N16.9 billion.
Additionally, the state allocated N10.8 billion to road rehabilitation and repairs, N3.5 billion for markets and parks rehabilitation, and a mere N59 million for water facility repairs. Notably, the N27 billion spent on the construction and provision of roads exceeds the debt servicing expenditure by only N7 billion.
These figures underscore Oyo State's heavy debt servicing burden amid pressing developmental challenges. Reports indicate that 79% of households in the state lack access to sanitary facilities, while 57% lack access to clean drinking water.
The state’s prioritization of debt servicing over critical public services raises questions about its fiscal strategy and the impact on residents’ quality of life.
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