Osun’s External Debt Rises by ₦35.76 billion in 18 Months, DMO Records Show
By Reloaded News
Official records published by the Debt Management Office (DMO) have shown that Osun State’s external debt stock increased by approximately $26.56 million between December 2024 and June 2026, raising questions about the loans or debt facilities responsible for the increase and whether the state government adequately disclosed them to the public.
The DMO’s external debt stock report as at June 30, 2026, puts Osun State’s total external debt at $101.70 million, compared with $75.14 million recorded as at December 31, 2024.
The difference represents an increase of approximately $26.56 million within 18 months.
At the Central Bank of Nigeria’s published Nigerian Foreign Exchange Market rate of ₦1,346.2565 to the dollar on October 30, 2026, the increase translates to approximately ₦35.76 billion.
A breakdown of the DMO figures shows that the state’s multilateral debt increased from approximately $67.60 million in December 2024 to $94.15 million in June 2026. Its bilateral debt also recorded a marginal increase, moving from approximately $7.54 million to $7.55 million within the same period.
The figures raise important questions about the nature, purpose and approval of the additional external debt obligations.
The development is particularly significant against the background of previous public statements by the Osun State Government concerning its debt reduction efforts.
In July 2025, the state government announced that Osun’s external debt had declined from $91.78 million in December 2022 to $75.14 million in December 2024, presenting the reduction as evidence of its debt management efforts.
However, the latest DMO records indicate that the external debt stock subsequently increased to $101.70 million by June 2026.
Although borrowing is not inherently unusual or objectionable, particularly when contracted to finance infrastructure and other development priorities, public accountability requires that citizens are informed about the obligations being undertaken in their name.
The increase in Osun’s external debt therefore raises several questions that deserve clear answers from the state government.
What specific loan facilities account for the increase of approximately $26.56 million? Which institutions or development partners provided the funds? What projects or programmes are being financed through the facilities, and when were the agreements executed and disbursements made?
Equally important is whether the loans were presented to the Osun State House of Assembly for consideration and approval, and whether the legislative process was conducted openly.
The public also deserves to know the repayment terms, interest rates, maturity periods and the implications of the obligations for the state’s future finances.
External loans, particularly those obtained from multilateral development institutions, may have long repayment periods. However, the duration and terms of repayment do not remove the responsibility of government to disclose the purpose and conditions of such borrowing.
For a state whose citizens will ultimately bear the consequences of public borrowing, transparency should not be optional.
The Osun State Government should explain the increase, identify the projects and programmes connected to the facilities, and make the relevant approval and repayment details available to the public.
The people of Osun State deserve to know the financial commitments being undertaken on their behalf and the development benefits expected in return.
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