After his screening and clearance to partake in Oyo gubernatorial race under the platform of the Peoples Democratic Party, PDP, Engr. Seyi Makinde, queried the state’s N157 billion debt profile.
He said, “It would take the next 18 years for a succeeding government to pay up the N157bn debt which this government has incurred in seven years”.
Makinde further stated that Oyo state ranks 30 among the 36 states in Nigeria and cannot sustain itself because it has a monthly N10b expenditure and a monthly revenue of N6billion, leaving a deficit level of N4bn.
But InsideOyo.com fact-checked the statement to see how much Oyo government is really owing, can the state sustain itself without federal allocation and how much does it generate among other states in the country.
This analysis is important so it can help politicians and party loyalist make informed comments and decision about the affairs of the state and out records straight.
How much is Oyo currently owing?
According to the National Bureau of Statistics (NBS) figures released last week, September 19, 2018, the accumulation of Oyo debt (local and foreign) stood at N126 billion as at June 30, 2018.
The Q2 figures had Lagos, Edo, Kaduna, Cross River and Bauchi as the 5 most indebted states in the country.
Breakdown of Oyo debt
- Foreign: $106 million
- Domestic: N88 billion
Is it true that Oyo state is rank 30 among the 36 states in Nigeria and cannot sustain itself?
InsideOyo.com checked and the answer is NO!
In its last Annual States Viability Index ( ASVI), Economic Confidential revealed 14 states that are insolvent as their Internally Generated Revenues (IGR) in 2017 were far below 10% of their receipts from the Federation Account Allocations (FAA) in the same year.
The Economic Intelligence magazine states that those states may not survive without the Federation Account due to poor internal revenue earnings.
Oyo state is not on the list.
InsideOyo.com checked further and Oyo state is placed on the 12h position on the state with high IGR for the year 2017.
