AMOSUN PLUNGES OGUN STATE INTO FURTHER DEBT - TOTAL DEBT EXPECTED TO HIT N302bn IN AUGUST 2014

Ilese News Extra have today learn't that borrowings since the inception of the Ibikunle Amosun administration is set to hit the N300bn mark by August 2014. Sources in the banking industry have told Ilese News Extra that the total debt portfolio of the State is set to edge closer to that of Lagos State, making it the 2nd most indebted state in Nigeria. Commercial rate interest is expected to hit N5.6bn monthly as Ogun State has again agreed in principle with some banks on further borrowings. The banks and the amounts are:

First Bank of Nigeria - N5,000,000,000.00
Sterling Bank Plc - N10,000,000,000.00
Guarantee Trust Bank Plc - N3,000,000,000.00
Ecobank Nigeria Plc - N1,000,000,000.00

Ogun State in the first two years of Governor Amosun's government took the following loans, they are:

First Bank - N18, 000, 000, 000.00
GTBank - N8, 000, 000, 000.00
Ecobank - N1, 600, 000, 000.00

It went on to convert a N40,000,000,000.00 Contractor finance facility initially granted by First Bank Nigeria into a liquid loan facility. It was to further request another N15,000,000,000.00 from the State House of Assembly in 2013.

The State's foreign loans have also grown exponentially. It is expected that Ogun State will overtake Lagos State (N450bn) as the most indebted State in the country by December 2014.

Following this new request for a fresh N19bn loan, the loyalists of the Governor Amosun in the State House of Assembly have stepped up their efforts to win more votes from the floor in support of the government's incessant borrowings, support enough to meet the 2/3 majority required on monetary related bills.

A loyalist of the Governor and a lawmaker in the State spoke to INE on conditions of anonymity, he said that the carrot approach was the best in this scenario giving that some of the lawmakers need the money to fight for re-election in 2015 and that it is expected that the individual bribe offered may hit N10m per member who vote in support. Other sources within the State House of Assembly have promised to provide recorded audio of the dealings over the issue of this fresh loan request.

The bank we reported in December which had said it would not do business with the State Government had reportedly shunned the government's request to fund it to the tune of N8bn, preferring to keep to its decision not to do business with Ogun State arising from the toxic and precarious state of it's finances under Governor Amosun.

Ilese News Extra will keep you abreast of any further development on the story.