Osun’s debt sustainable –DMO

Contrary to insinuation that the Osun State debt has hit N350 billion, the Director General, Debt Management Office (DMO), Abraham Nwankwo, has given the state a clean bill of health on its debt status.

Nwankwo disclosed that the state is one of the best states in the federation with public debt management.

Fielding questions from newsmen at MicCom Golf Hotel and Resorts, Ada, Osun State, during a three-day retreat for members of the House Committee on Aids, Loans and Debt Management, Nwankwo declared that Osun State status is very sustainable.

Nwankwo, who did not give the actual debt figure of the state, explained that Osun needed to be encouraged in terms of management of debt because it has not borrowed beyond its capacity.

It would be recalled that opposition parties, in particular Peoples Democratic Party (PDP) and Social Democratic Party (SDP), had accused the Aregbesola-led government of a huge debt profile of between N300 billion and N350 billion.

While the state Chairman of PDP, Ganiyu Olaoluwa, claimed that Osun Debt is now N300 billion, Segun Akinwusi, Social Democratic Party (SDP) governorship candidate, claimed that the debt profile of the state has hit N350 billion.

But the DMO boss said Osun State is one of the states in the federation with good and stable public debt management, adding that his office recognises Osun State as the first state to take Sukuk and “by our plan is to encourage the issuance of Sukuk in Nigeria because we need to diversify the instrument in the bond market.

“We want to make sure that all segment of the society is captured in the bond market because there are some groups of people or individuals who do not want to participate in ordinary bond because of interest.

“Our office, DMO, and others are working hard to introduce Sukuk in Nigeria; we are delighted that Osun takes the initiative and help in introducing it in Nigeria, so by that, Osun is one of the best states in public debt management.”