The All Progressives Congress APC in Osun State and Governor Ademola Adeleke on Tuesday clashed over an alleged plot by the governor to borrow N300 billion using local government funds as collateral.
In a statement issued by APC Chairman Tajudeen Lawal, the party alleged that the Adeleke-led administration planned to use council funds as collateral to access a fresh N300 billion loan from a commercial bank. APC claimed the governor turned to this route after losing legal battles to control local government councils across the state, warning the bank against participating in any such illegality.
According to Lawal, Governor Adeleke and his aides convened a meeting of PDP elected council officials and senior career officers to gain support for the loan scheme. He described the plan as deliberate and unpatriotic, warning that it would plunge future generations into unnecessary debt. The APC also cited the Debt Management Office Act 2003, which requires the approval of the Federal Minister of Finance, the Accountant-General of the Federation, and local government executives before such borrowing.
Reacting, Governor Adeleke’s spokesperson Olawale Rasheed denied the allegations, describing them as a cover for APC’s alleged misappropriation of local government funds. Rasheed accused APC of hijacking and illegally disbursing parts of over N250 billion meant for Osun local governments, and said the governor has no intention of entering into criminal loan agreements.
He added that the state government under Adeleke is focused on cleaning up the fiscal, infrastructure, and social challenges inherited from the previous administration, and vowed that voters and the law would hold those involved accountable.
The disagreement highlights ongoing political tensions in Osun State as APC and the state government continue to dispute control and management of local government resources.
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