Ekiti: PDP accuses Gov Fayemi of taking N25.5bn secret loan

The PDP disclosed that the N20 billion loan was secretly obtained from Access Bank in December 2019 and the State Internally Generated Revenue (IGR) was mortgaged to the loan for a period of 20 years.

Emmanuel AmudaAugust 5, 2020

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The Ekiti State chapter of the Peoples Democratic Party (PDP), on Wednesday, August 5, has accused the State Governor, Dr. Kayode Fayemi of plunging the State to fresh indebtedness, disclosing that between December 2019 and July 2020, the government has taken N25.5 billion loan.

Secretary of the PDP Caretaker Committee in Ekiti State, Prince Diran Odeyemi, who made this known in a statement on Wednesday, said it was strange that the State Government could take N20 billion and N5.5 billion loans, with 20 and 15 years repayment plan without informing the people of Ekiti State.

The PDP disclosed that the N20 billion loan was secretly obtained from Access Bank in December 2019 and the State Internally Generated Revenue (IGR) was mortgaged to the loan for a period of 20 years.

“As for the new N5.5 billion, it was a Central Bank of Nigeria (CBN) Agric loan and it was paid into the State Government account in Sterling Bank last month.

“The N5.5 billion has 15 years repayment period and as at today, N1 billion has been looted from it with the remaining N4.5 billion to be diverted into private pockets, with about 1,000 hectares of land to be cleared and the bush clearing already done by the State Government as justification,” the party said.

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While condemning the All Progressives Congress (APC) Government of Fayemi for always plunging Ekiti State into debt, Odeyemi said it was appalling Governor Fayemi is accumulating debts now, just the way he plunged the State into debt during his first tenure.

It should be noted that in May this year, the State Government said it had concluded arrangements to secure N2.5 billion loan. If this N2.5 billion is added to N25.5 billion, it will amount to N28 billion, meaning that within two years, Governor Fayemi has obtained N28 billion loan!

The PDP said; “During his first tenure as governor, despite receiving over N46.4 billion from the Excess Crude Account and N2 billion as Subsidy Reinvestment Programme (SURE-P) fund, Fayemi took N25 billion bond, N31 billion commercial bank loan and left N15.5 billion warrants unpaid.

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“Contractors were owed N21.3 billion while unpaid State Public Servants emoluments were N5.1 billion, with N709.9 million outstanding remittances to federal government.

“During his first tenure, Governor Fayemi squandered the loan that he took and he is doing the same thing now. For instance, N2.75 billion was earmarked for the construction of Oja Oba market in Ado Ekiti out of the N20 billion bond obtained in 2012, nothing was done. Also, N400 million was earmarked for the construction of New Governor’s Office, nothing was done.”