An analysis of the Oyo State budget performance document for the third quarter of 2024 has revealed that the state allocated a staggering N20 billion to debt servicing between January and September 2024.
The breakdown shows that foreign debt servicing accounted for N6.5 billion, while domestic debt servicing amounted to N13.9 billion. This expenditure exceeds the funds allocated to several critical infrastructure and public services within the state during the same period.
For example, the review of the document highlights that no funds were allocated to the construction or provision of hospitals and health centers throughout the nine months under review. Additionally, only N2.6 billion was spent on constructing or providing public schools, and N16.9 billion was used for infrastructure development.
While debt servicing stood at N20 billion, other key areas received significantly lower funding. Rehabilitation and repairs of roads were allocated N10.8 billion, while N3.5 billion was spent on the rehabilitation of markets and parks. Water facilities received a mere N59 million for repairs and maintenance.
Notably, the state spent only N7 billion more on constructing and providing roads than it did on debt servicing, with a total of N27 billion allocated to road projects compared to N20 billion on debt servicing.
This heavy expenditure on debt servicing comes at a time when 79% of households in Oyo State reportedly lack access to sanitary facilities, and 57% do not have access to clean drinking water.
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Source: Chronicles Reporters