The Oyo State budget performance document has shown that the state borrowed ₦62 billion in the first nine months of 2024. This development is even as the state spent ₦20.5 billion on public debt charges in the same period of time.
Put into context, Sahara Reporters state that Oyo spent 44.4% of its internally generated revenue in the first nine months of 2024 on debt servicing.
Further review shows that the state spent only ₦2.9 billion on its education, science and technology sector capital needs in the first nine months of 2024 and spent ₦20 billion on public debt charges.
Only ₦43.6 million was spent on the state’s health ministry capital needs in the first nine months of 2024, ₦3.5 million was spent on the rural water and sanitation agency capital needs in the period under review.
Only ₦59.8 million was spent on rehabilitation or repairs of water facilities. Nothing was spent on rehabilitation or repairs of hospitals/health centres. The analysis further showed that the state spent ₦10 billion on rehabilitation/repairs of roads which is just half of what was spent on debt charges. Other developments that suffered include erosion and flood control which took only ₦200 million.
There have been continued concerns on overreliance on loans by states to fund their budget. Large loans have left states with high debt servicing figures which experts say deny citizens of enjoying meaningful developments.
