Oyo State’s financial situation raises concerns as the state accumulated N62 billion in debt within the first nine months of 2024, according to SaharaReporters’ analysis of the state’s budget performance document. Alarmingly, debt servicing consumed 44.4% of the state’s internally generated revenue during this period, totaling N20.5 billion ¹. This substantial expenditure on debt charges overshadowed other critical sectors.
Key Allocations:
- Education, Science, and Technology: A mere N2.9 billion was allocated for capital needs, significantly overshadowed by the debt charges.
- Health Ministry: Only N43.6 million was spent on capital needs, while N3.5 million was allocated to the rural water and sanitation agency.
- Water Facilities: Rehabilitation and repairs received a meager N59.8 million.
- Hospitals and Health Centers: No funds were allocated for rehabilitation or repairs.
- Roads: N10 billion was spent on rehabilitation and repairs, which is only half of the amount spent on debt charges.
- Erosion and Flood Control: A paltry N200 million was allocated.
Experts warn that excessive borrowing to fund state budgets leads to high debt servicing figures, ultimately depriving citizens of essential development projects. This trend sparks concerns about the long-term financial sustainability and impact on public services ¹.
