The 2023 financial audit conducted by Osun State’s Auditor-General, Kolapo Idris, has shed light on the state’s debt situation, revealing a total liability exceeding N336 billion. The report offers a detailed analysis of the state’s fiscal strategies and highlights significant domestic and external debt burdens.

Domestically, the state’s liabilities include a salary bailout of N21.6 billion, restructured commercial bank loans of N73.9 billion, and a Federal Government intervention fund amounting to N18.4 billion. On the international front, Osun State’s external debt is pegged at N78.5 billion, underscoring a heavy reliance on borrowed funds for financial operations.

Further scrutiny of loans under the Domestic Debt Management Office (DMO) unveils additional financial commitments. These include undisclosed loans worth N114 billion, a budget support facility of N17.2 billion, an Excess Crude Account (ECA) facility of N9 billion, and infrastructure loans totaling N4.3 billion, collectively pushing DMO-managed domestic loans to N144.6 billion.

In terms of debt servicing, public debt charges for 2023 amounted to N16.73 billion, falling short of the N19.85 billion budgeted. This N3.12 billion variance was largely due to reduced domestic interest and principal payments on treasury bills and long-term borrowings. Specifically, domestic interest payments totaled N1.57 billion, below the projected N2.38 billion, while principal payments reached N15.15 billion, under budget by N2.33 billion.

In addition, the report highlights the state’s travel and transport expenses, which totaled N4.38 billion, slightly below the budgeted figure of N4.63 billion, with a variance of N253.7 million.

The audit underscores Osun State’s increasing dependence on loans, raising concerns about fiscal sustainability and the need for more prudent financial management strategies to address its growing debt burden.