Funmi Olaitan, Ibadan

Oyo State Commissioner for Finance and Budget Planning, Mr. Abimbola Adekambi, on Tuesday, denied rumour that the state government was planning to borrow N100b from some banks in the country.

He made the disclosure while addressing journalists in Ibadan, the state capital, stating that the rumour is the handiwork of those he described as having 'vested' interests in the financial affairs of the Ajimobi-led administration.

He said apart from the fact that the Federal Government had embargoed state governments from borrowing, the state at the moment could never be allowed access to such a huge amount of money because of the conditionalities that surround the business of borrowing.

According to him, some of the conditions that determine how much a state can access as loan  include the state's level of internally generated revenue, guarantees from the Debt Management Office and Ministry of Finance as well as the mechanism on how to repay the debt, all of which will not guarantee the state securing such huge amount at the moment.

He maintained that the state had not thought about the idea of borrowing N100b from any bank, let alone pursuing it. 

Speaking on the recently received N7.9bn second tranche of the Paris Club Refund, Adekambi assured that beyond the directive of President Muhammadu Buhari to all state governments to use at least 50 per cent of the fund on paying outstanding workers salaries and emoluments, the state government would commit not less than 60 percent of the entire fund for salaries, salary-related matters including wages and pensions.

He added that, this is in addition to the government's commitment to use all funds accruing to the state from the federation accounts for the same purpose.

While debunking claims that the state's debt profile is to the tune of N115 billion, he explained that about 80 per cent of the figure is made up of salaries, gratuities, pensions and wages owed workers and pensioners in the state before Governor Abiola Ajimobi came on board.  

He disclosed that the remaining 20 per cent is however composed of financial support from the Federal Government including budget support and infrastructural loan.

He said, "the Abiola Ajimobi's administration is very committed to the welfare of the entire people of the state, hence, its decision to deplore 60 per cent of the first disbursement of the first tranche of Paris Club Refund for workers welfare which is more than the 50 per cent suggested by President Muhammad Buhari.

"We will all recall that President Buhari has told state governments to use at least 50 per cent of the refund for workers' wages, salaries and allowances. We are doing more than the 50 per cent in Oyo State. 

"When we collected the first tranche of N7.2bn, we used 60 per cent for workers' salaries and wages. We also collected a part two of the inflow of the sum of N5.003bn and committed 100 per cent to salaries and salary related payments of workers in the state.

"We have paid two months salaries three times consecutively and the governor has not relented in his efforts to clear all the outstanding wages. We will all remember that Oyo State was initially excluded from the refund, but the governor's tenacity and strong will ensured that we also got our share.

"It amazes me when people throw figures in the air without proper explanation or understanding. It is very disappointing when people who claim to be knowledgeable bandy figures for mischief with malicious intent for cheap political gain. Our books are available for all to see and the leadership of the workers' unions meet with us regularly. We devote 100 per cent of our federal allocations to workers' salaries and salary related and we did not borrow all the N115 billion debt.

"About 80 per cent of it is an accumulation of outstanding salaries, pensions, gratuities including those from previous administrations. We will do all within our capacity to always set the record straight and put things in proper perspective with a view to enlightening the public."

He added that the administration tagged the 2017 budget, "Budget of Self-Reliance" because it hoped to generate more funds internally, stating that the state government is already exploring the sales of lands across the states, widening its tax net as well as blocking leakages as a result of rot in the system, to generate more fund for the government to deliver its promises to the people.

Commissioner of Information, Culture and Tourism, Mr. Toye Arulogun, in his remarks, while lamenting that the state government is using 100 per cent of its federal allocation to pay less than two per cent of the population, noted that the government is using its financial mechanism to generate more funds to ensure that other obligations are met to the entire populace.