The Action Congress of Nigeria and the Peoples Democratic Party have disagreed over the insinuation that the debt profile of Osun State has exceeded N300bn.
Commissioner for Special Duties and Regional Planning, Mr Ajibola Basiru, described the allegation by the PDP that Osun has borrowed more than N300bn as childish.
Basiru, who spoke in Osogbo on Friday during a rally in support of Governor Rauf Aregbesola's second term bid, said no bank in Nigeria has the authority to grant more than N20bn loan to a borrower at a time, stressing that "the recapitalisation fund for banks in Nigeria remains N25bn."
He said, "Everything that we do is in the public domain and in public interest. PDP members peddling rumours here in Osun should contact the Debt Management Office to know the truth. We have not borrowed from any bank.
"No bank will borrow you more than your earnings and resources. How much does Osun collect as federal allocation in a month? Is it up to N300bn? No bank in Nigeria will borrow you N300bn.
"The PDP is pained and shocked by the tremendous projects being done throughout the state. Instead of them to join the progressive train of Aregbesola, they have resorted to lies, cheap blackmails and rumours.
These will not save them from defeat in 2014."
But the Chairman, Osun PDP, Alhaji Gani Olaoluwa, insisted that the Aregbesola administration has borrowed over N300bn from various banks within and outside the country.
