Oyo State has sparked concerns after borrowing billions of naira in just nine months, while also spending heavily on debt servicing.
This development is alarming, especially considering the state spent a substantial amount on public debt charges during the same period.
A review of the Oyo State budget performance document reveals the state’s significant financial burden.
The state spent a substantial percentage of its internally generated revenue on debt servicing, leaving little for essential sectors.
Education, science, and technology received minimal funding, while healthcare and rural water and sanitation agencies received paltry allocations.
Road repairs and erosion control also suffered from inadequate funding.
Experts warn that states’ reliance on loans to fund budgets leads to high debt servicing figures, ultimately denying citizens meaningful development.
This trend raises concerns about Oyo State’s long-term financial sustainability and its ability to provide essential services to its citizens.
