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Ekiti government speaks on allegation it borrowed N56bn, explains real situation

Ekiti government speaks on allegation it borrowed N56bn, explains real situation

- The Ekiti state government says it does not owe N56 billion in debt as was widely reported recently

- The government claims that the current government was only indebted to the tune of N11.6 billion

- It says it knows where the allegation allegedly aimed at denting the government comes from

The government of Ekiti state has denied the report that it borrowed N56 billion since Governor Ayodele Fayose assumed office and that a fresh N25 billion loan was applied for.

The government said: “The only fresh loan taken by the government of Fayose was the N10 billion grant from the Excess Crude Account (ECA), which was released to all states for capital projects, N2.8 billion requested from Wema Bank to pay State Universal Basic Education Board (SUBEB) counterpart fund out of which N1 billion has been accessed and N600 million for MDGs counterpart fund, which has been repaid.”

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The state government said it knows where the allegation emanated from saying it was not true that the current administration was so heavily indebted.

A statement by the Lere Olayinka, the special assistant to the state governor on public communications and new media, Lere Olayinka, and obtained by, claimed: “There is no recent bulletin from the DMO website concerning debt owed by any state as claimed in the false report.

“As at the time Governor Fayose assumed office, some of the loans on the debt profile of Ekiti state were; bond from capital market (N26.7 billion), loan for developmental projects obtained from Ecobank using Fountain Holdings (N5 billion), loan for recapitalization obtained from Wema Bank (N1 billion), commercial agric credit scheme from First Bank (N420.8 million), loan for legacy facility obtained from Ecobank (N408.2m), loan for developmental projects obtained from Skye Bank (N7.5bn), vehicle lease obtained from Ecobank (N146.6bn), laptop procurement (N375m) among others.

“It is on record that Ekiti State Government was indebted to the tune of N86, 013,689,097 as at October 16, 2014 that Governor Fayose took over.

“The debts are broken down as follows: bank loans; N15,831,613,425.62, Bond; N26,749,796,784.75, outstanding warrants; N15,522,552,900.76, outstanding to road contractors; N21,286,126,749, outstanding remittances to federal government; N709,883,656.75, outstanding remittances (state government); N592,995,374.89 and EKSG public servants outstanding emoluments; N5,137,888,224.37.

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“The website of the DMO is, Nigerians can visit the website to see whether or not there was any bulletin published this month concerning debt owed by Ekiti state government.”

The statement said that the government was not troubled about those trying to give it a bad name. earlier reported how Ekiti governor, Ayodele Fayose, was accused by the All Progressives Congress (APC) of shortchanging delegates from the state at the recently-held national convention of the Peoples Democratic Party (PDP).

The allegation was leveled by the spokesman of the Ekiti state chapter of the APC, Taiwo Olatubosun.

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