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PDP says servicing Fayemi’s debts has cost Ekiti N35.34b


Kayode Fayemi

Chairman of the Peoples Democratic Party (PDP) in Ekiti State, Gboyega Oguntuase, has said that servicing debts incurred by ex-governor Kayode Fayemi has cost the state N35.34 billion.

He said the debts and deductions from statutory allocations, which started from 2010 to 2014, have continued till date.

Oguntuase said the state is servicing the debts with an average of N1.1 billion monthly, adding that about 40 per cent of the state’s allocations are deducted monthly from the source.


According to him, documents from the Debts Management Office (DMO) and the Federal Ministry of Finance revealed that the liabilities were incurred under several headings.

He noted that from October to December 2014, N1.71 billion was deducted from the state’s allocations to service the debts.

He said: “In 2015, N7.85 billion was deducted from the allocations, and in 2016, it was N11.30 billion, while in 2017, N12.12 billion was also deducted.

“From January to May this year, N4.94 billion has been deducted. While the state has paid off the commercial agriculture credit scheme, it is yet to pay off others, even as some would run till 2036.”

The PDP chairman stressed that these huge deductions have robbed Governor Ayodele Fayose of financial capacity to pay workers salaries promptly and also meet obligations on projects execution.

He explained: “The debts are under some contractual obligations as fertiliser, foreign loans, bond, and commercial agriculture credit scheme.

Others are water project, restructuring of bank loans and excess crude loan among others.

Oguntuase disclosed that under contractual obligations, Fayemi’s government bought vehicles for traditional rulers and various groups, which they did not offset before leaving office.

“We all know about the N25 that billion they borrowed from the Capital Market to finance some projects, but where are the projects?” he asked.

Responding, the Director of Media and Publicity of Fayemi Campaign Organisation, Wole Olujobi, said it is ridiculous for Fayose and his aides to still be peddling inaccurate debt figures.

He said the Debts Management Office had published that Fayose borrowed N56 billion in the last three years, contrary to his opinion that he never borrowed any money.

“Again, we admit that Fayemi borrowed N25 billion to be defrayed within seven years. Records are there at the DMO that Fayemi paid back N14.5billion of the debts.

“This left a balance of N10.5billion before he left office on October 16, 2014. All the projects that benefitted from the bond are verifiable,” he said.

He explained other areas covered by Fayemi’s loan to include roads across the state, schools and hospital rehabilitation.

Olujobi accused the Fayose administration of abandoning the world standard Ikogosi Resort, Ire Burnt Bricks Company, and other projects initiated by Fayemi.

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