It is almost six years that Osun State Governor, Ogbeni Rauf Aregbesola has been in the saddle. He was returned to office in November 27 2014, for a second term. Like in other states, Aregbesola met the state in debt with abandoned projects. He however took only sukuk loan at zero percent interest rate for 11 High Schools project that have direct impact on the lives of the people. He has worked on roads, flyover and airport construction.
From Debt Management Office (DMO) 2015 Annual Report, the total public debt outstanding between 2008-2015 for external stock rose. The total debt service the same period saw the percentage of external debt service drastically reduced from 11.46 per cent to 5.96 per cent, while the percentage of domestic debt servicing grew drastically, increasing the cost of the total debt service since the cost of domestic borrowing is atrociously higher than the cost of external borrowing and this is Aregbesola’s strategy of managing Osun’s debt.
 

 
It’s an established fact that the willingness and ability to borrow do not automatically translate into economic growth. If you agree with this fact, how productive are the country’s recent borrowings?  Governor Aregbesola has observed that our internal debts continue to represent more than two-thirds of Nigeria’s external debt profile, when the cost of servicing domestic debts is ridiculously far more expensive than servicing external debts.
The Governor has questioned government’s continuous borrowing internally when doing so results in insufficient funds, skyrockets the cost of borrowing and above all, crowds out the real sector from the money market? Shouldn’t the high cost of domestic borrowing override whatever are the assumed benefits? Since both London Interbank Offer Rates (LIBOR) and the US Treasury Bonds rates offer far better interest rates for sovereign borrowings, why have we continued not to take advantage of cheaper interest rates?
Osun State raised a sukuk bond worth N10b (some $62m) from the capital market to fund educational development – the first of such by Africa’s biggest economy. Governor Aregbesola is aware that Islamic financial instruments such as sukuk, which attracts zero percent interest has been used to finance infrastructure projects in countries like Malaysia and Indonesia, and in the Middle East, and could attract investors from such countries.
He knows that Islamic finance requires a clear link with real economic activity and transactions have to relate to a tangible, identifiable asset, which comes in handy in the case of infrastructure financing. The governor’s strategy in managing Osun Debt favoured the issuing of a sovereign sukuk, which will send a much-needed positive message to the market amidst the negative investor sentiment that persists currently. He expressed confidence that Nigeria’s maiden sovereign sukuk, which will be oversubscribed as both domestic and foreign investors have appetite for exposure to Nigeria. He therefore urged the DMO to take advantage of this unique opportunity to make a mark on the sukuk market in spite of the challenging times.

In a bid to secure debt relief for inherited debt that will free up funds to meet financial obligations to workers, contractors and other debtors, Osun and other states have topped the list of 11 states, which have issued Federal Government bonds (FGN Bonds) to 14 commercial banks under a debt-restructuring programme facilitated by the Federal Government. The 36 states of the federation had approached President Muhammadu Buhari in June to ask for a bailout that would enable them pay salary arrears to their employees and meet other pressing obligations.
Seizing on the opening, 22 states of the federation have applied to the Debt Management Office (DMO) for their debts to be restructured into FGN Bonds. The Director-General of the DMO told the Nigeria economic council that based on the approval of the president on the plan to restructure bank loans of the states into FGN Bonds in order to address their fiscal imbalance, 22 states submitted reports and applied for restructuring as at August 19.
Governor Aregbesola has studied Osun low multilateral debt, which is the total amount of money that Osun State owes to international financial institutions, such as the World Bank and the International Monetary Fund (IMF). The state only took sukuk bond to build 11 High Schools and no other loan. These financial entities insist that the repayment of multilateral debt becomes priority over any other outstanding loans.
The governor equally studied Osun State bilateral debt, which is a simple loan arrangement between Osun State and a single lender. Such loans are called “bilateral” because there are only two parties to the loan, each with an obligation to the other: One will provide a specific amount of money under the terms of the loan agreement, and the other will repay the money as provided for in that same agreement. Osun sukuk is under multilateral debt. According to DMO, the country’s public debt-to-Gross Domestic Product remained sustainable as a result of the insightful management of the debt portfolio, even in the midst of crude oil price slump.
Osun debt continues to be sustainable in line with IMF debt sustainability threshold, despite all these volatilities in the international capital market and the collapse of oil prices. The people of Osun State have nothing to fear over the level of Osun debt and its management, but should see this period as the time to work harder to grow the economy. Osun Sustainable debt has allowed the state to meet its current and future debt services obligations in full, without recourse to further debt relief or rescheduling, avoiding accumulation of arrears, while allowing an acceptable level of economic growth or without compromising growth. Osun has met IMF debt sustainability threshold, which is a measure of Osun solvency, that is, to ensure that accumulated debts are serviced without defaulting and she is able to sustain her debt servicing overtime. Generally, Osun has a borrowing space under the International Monetary Fund (IMF) debt sustainability threshold of 45% for which Nigeria and other low-middle income countries are.

SINCE he was sworn-in, Governor Aregbesola had publicly announced the need to reduce the recurrent expenditure so that more money would be made available to capital spending, which is critical to growing and diversifying the state’s economy. How far has Osun government succeeded in making these necessary cuts; and where exactly have these cuts been made in this effort to reduce recurrent expenditure? In other words, based on real amount spent on capital expenditure, how much reduction was made from 2011- 2016?
Governor Aregbesola introduced sukuk as a debt management strategy that the percentage of external debt service drastically reduced, while the percentage of domestic debt servicing grew drastically, increasing the cost of the total debt service.
The opposition parties in Osun State had claimed that Osun debt profile is not sustainable but the Director General of DMO has proved them wrong. DMO and others are working hard to introduce Sukuk in Nigeria; The Director General of DMO said he was delighted that Osun took the initiative and helped introduce it in Nigeria. By this, Osun is one of the best states in public debt management, he said.  Nwankwo, who did not give the figure on the actual debt explained that the state needed to be encouraged in term of the management of debt because it had not borrowed beyond its capacity. According to the Director General, the nation’s debt GDP ratio has fallen from 22 per cent to 13 per cent. He said, “Our debt is sustainable because the GDP is much lower now. However, in spite of that, government will continue to be very prudent, conservative in its spending.Fanoro is Special Assistant (media) to Osun State Governor.
Aregbesola is well grounded in managing finances and has brought this to bear in the manner he has gone about financing massive infrastructure in Osun as other states sleep away over the recession. Aregbesola’s proactive thinking has taken Osun higher over his six years and these shows that governors all over must become thinkers and not just come in to do things the normal ways. Innovation is the way to go and Ogbeni is the example.

The Governor of the state of Osun, Ogbeni Rauf Aregbesola has again called on traditional rulers to ensure security of lives and property of people in their domains.
The Governor gave the charge while presenting the instrument of appointment to Obaala of Ila Orangun, Obaala Samuel Olufemi Otitoola at the event that was held at the Palace of Orangun of Ila.
 

 
 
The Governor ,who was represented at the event by the Secretary to the State Government, Alhaji Moshood Adeoti said traditional rulers are the custodians of culture and custom of their people saying they know their people better than the security operatives.
Governor Aregbesola lauded the humility and kindness of Orangun of Ila Orangun, Oba Wahab Kayode Oyedotun Bibire l for his subjects. He described the referred monarch as peace loving and progressive saying government will not do anything to undermine his authority in his domain.
The Council Manager of Ila Central Council Development Area, Mr Afolabi Fapounda thanked the Governor on behalf of the people of the town for creating Local Council in Ila saying the action will boost the economy of the people of the area.
The Orangun of Ila Orangun, Oba Wahab Kayode Oyedotun Bibire I appreciated the government for elevating one of his Chiefs to part ii status. He said Obaala Samuel Otitoola is not Obaala of Oke Ejigbo but Obaala of Ila Orangun.
In his welcome address, a community leader ,Prince Oye Agboola described the new Obaala as a very quiet, brilliant and intelligent person who is poised to work for the development of Ila Orangun.
Obaala Samuel Olufemi Otitoola thanked the Governor for the honour done him promising to rededicate himself to the development of Ila Orangun. He appealed to the people of Ila to continue to support and cooperate with government.
Other personalities that graced the Occasion were the Olufon of Ifon, Oba Al Marufu Mogbagbeola, the Permanent Secretary of the Ministry of Local Government, Chieftaincy, Water Resources, Rural and Community Affairs, Mr Muftau Oluwadare as well as prominent sons and daughters of Ila Orangun.

The Governor of the State of Osun has reiterated his commitment to care for people with disability irrespective of their status, by empowering them with means of livelihood for survival in the society.
This was made known by Governor Rauf Aregbesola, who was represented by former Special Adviser on Youths and Sports, Comrade Biyi Odunlade at the closing ceremony on skills acquisition programme for persons with disability.
 

 
The event took place at Osun Rehabilitation Centre, Ilobu and was organised by the State Ministry of Women, Children and Social Affairs.
The Chairman ,House Committee on Women, Children and Social Affairs, Honorable Isreal Aloba also speaking at the ceremony, encouraged the beneficiaries not to be static, but develop more on the skills acquired. He then affirmed the support of the members of the State House of Assembly to the welfare of people with disability.
Earlier in her welcome address, the Permanent Secretary, Ministry of Women, Children and Social Affairs, Pharmacist (Mrs.) Omolara Ajayi congratulated the beneficiaries for being empowered by Governor Rauf Aregbesola despite the economic recession in the state.
She described the gesture of Governor Rauf Aregbesola as passion to bring special people with disability out of the shackles of poverty and erase stigmatization that is often attached to their status.
The beneficiaries were selected from Local Council Development areas, area offices and Administrative Offices across the state.

The executive governor of the state of Osun Ogbeni Rauf Aregbesola has urged teachers in the state to create and engage students in secondary schools in extracurricular activities so as to prevent them from involving in nefarious activities.
The Governor said this during the grand finale of a debate organised by Segun Adegoke Youth and Development Foundation (SAYDEF) for secondary school students in the state held at the Ikire campus of Osun State University.
 

 
 
Aregbesola who was represented by the Executive Secretary of Osun Education Quality Assurance and Morality Enforcement Agency, Dr Ayodele Owoade urged the teachers to be committed to their jobs and assured them that the arrears of their salaries would be paid.
The governor commended the founder of the SAYDEF, Mr Segun Adegoke for his positive impact on the youth and his contributions to the betterment of the lives of other people in the state.
At the end of the debate, Regina Mundi Girls Secondary School, Iwo emerged the overall winner. Greys International School, Ede won the second position while Deeper Life International School, Agunbelewo Osogbo came third. The winners got cash prize and learning materials.
Owland National School, Olupona came 4th in the competition while Fatimah High School, Ikire came 5th and they also received cash and other consolation prizes.
The founder of the SAYDEF, Mr Segun Adegoke said he set up the foundation to motivate youths and encourage them to engage in intellectual activities.

The Bank of Industry and Oduduwa Foundation have sealed a N1bn financing scheme for the benefit of small businesses in Osun State as part of measures to address youth unemployment and poverty in the state.

Under the MoU, the bank will provide loans to youths and businesses in Ile-Ife, as well as other beneficiaries outside the community.
According to the bank, the fund will be made available for on-lending to entrepreneurs within the agric, agro-allied, solid minerals and services sectors at an interest rate of 7.5 per cent.

A statement quoted the Acting Managing Director, BoI, Mr. Waheed Olagunju, as saying during the signing of the agreement in Ile-Ife recently, that a substantial part of the loan would be disbursed to women, youth and businesses showing high potential for job and wealth creation along the value-chain of the identified sectors, as well as capacity to repay the loans.
He said, “We have been partnering multinational and corporate companies, but today, we are collaborating with traditional rulers. These are people who have access to the grass roots. Partnering them is a way of ýdemocratising entrepreneurship.
“We identify areas in which communities have comparative advantages and invest in them. The beneficiaries will be selected using the global best practices.
“For this edition, about 15 to 20 per cent of them will be those who deal in local production, especially value-addition. We are working with the Entrepreneurship Development Centre of Obafemi Awolowo University, Ile-Ife. Applications are expected to be submitted and a joint committee of the BoI team, the Oduduwa House and OAU team will access it. They are to be monitored by members of the committee and elders, especially the traditional rulers.”
Olagunju added that the first batch of potential beneficiaries had been trained by the EDC, as the bank was alfready building capacity of entrepreneurs before disbursing the funds to them, adding that at least 5,000 youths would benefit from the initiative.
On his part, the Ooni of Ife, Oba Adeyeye Ogunwusi, emphasised the need to get youths empowered, saying that was necessary for the nation’s continuous growth.
He challenged monarchs across the country to be dedicated to youth development in their communities.
Oba Ogunwusi said, “If the youths of today are empowered, many generations will benefit from them and poverty will be abolished. Today’s event is another giant step in the history of Ile-Ife.
“We are moulding the future of our youths in the areas of agriculture and agro-allied industry. I put a challenge to other monarchs to engage in community partnership. We should stop relying on government.”

The State Programme Officer of Osun School Feeding and Health Programme (O’MEAL), Mrs Olubunmi Ayoola has charged the food vendors in the Government Elementary Schools across the State to serve pupils with quality and nutritious food in line with government directives.
 

 
Mrs Ayoola made this charge while addressing the food vendors at a workshop in Osogbo and Ilesa.
She said Ogbeni Rauf Aregbesola’s administration has invested so much in the feeding of pupils in public elementary schools and this has manifested in the increase in the enrolment of pupils in the schools.
Mrs Ayoola explained that, the inclusion of Orange Fleshed Sweet Potato (OFSP) in the menu is to add more value and increase more vitamin A intake in pupils in public schools.
She therefore advised the food vendors to always serve fruits as provided in the menu table of the pupils.
Highlight of the activities was the demonstration of cooking of Orange Fleshed Sweet Potatoes .

The State Operation Coordinating Unit of Youth Employment and Social Support Operation, Bureau of Social Services has started releasing the Single Register of poor and vulnerable people for public works in the State after clearance from the World Bank.
 

 
The Public Workfare component of YESSO had collected its list of beneficiaries based on selection criteria as entrenched in the operation manual of YESSO. The Public Workfare Program Implementation Unit led by Mr. Gbenga Odulaja came to SOCU office with his team in April and July 2016, to mine from the Single Register for the first and second phases of Community-Based Targeting respectively.
Beneficiaries are aged between 18- 35 yrs with not more than 0-9 yrs  of education
There are 1,088 eligible persons spread across 303 communities in 12 LGAs covering the 3 Senatorial Districts.
The beneficiaries were selected from households nominated as the poorest by ALL stakeholders in each community viz: Elders Group, Women Group & Youth Groups
Majority are female & about 30% suffer from one handicap or the other

The Speaker,Osun House of Assembly, Mr Najeem Salaam, says the parliament will continue to support the Governor Rauf Aregbesola-led executive arm of government in providing affordable healthcare for the citizens of the state. Salaam said this on Wednesday in Osogbo while receiving the members of Diabetes Association of Nigeria (DAN).
 
 

 
 
The speaker, who noted that Governor Aregbesola had improved the health care delivery in the state, said the government would be encouraged to do more.
 
He urged all other stakeholders in the health sector in the state to support Governor Aregbesola-led government’s programmes in providing affordable and qualitative healthcare for the citizenry.
 
In his remarks, the House Committee Chairman on Health, Mr Leke Ogunsola, said diabetes was an ailment that kills if proper care and enlightenment were not given to the public.
 
Ogunsola said if these had been done, people would know the causes and how to prevent diabetes.
 
Also speaking, the DAN National Vice-President, Mr Sunday Olayemi, commended the assembly for supporting the association in its fight against diabetes.
 
Olayemi urged other states’ parliaments to assist diabetic patients in tackling the challenge of insufficient drugs for patients in the hospitals.

The Governor of Osun State, Ogbeni Rauf Aregbesola, on Thursday extended his condolences to the family of Chief Rasheed Gbadamosi who died on Wednesday.
 

 
Aregbesola described the late Gbadamosi as a leading industrialist, humanist, art  and culture promoter and writer.
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In a condolence message signed by the Director, Bureau of Communication and Strategy, Office of the Governor, Mr. Semiu Okanlawon, Aregbesola described the death of the industrialist as the “passage of a good man.”
The Governor, who prayed for the repose of Chief Rasheed Gbadamosi’s soul and extended his condolences to the immediate family, members of the business community, the people of Lagos state where he hailed from and Nigeria at large.
Aregbesola urged Governor Akinwumi Ambode of Lagos State, people of the Business and Art communities to take with equanimity the death of Chief Rasheed Gbadamosi, describing it as an inevitable end for all.‎
Aregbesola said: “The late Gbadamosi lived his live for the good of humanity. He was a good man. He built reputation as a credible businessman and industrialist. His love for philanthropy was remarkable. He loved culture and spent his resources to promote arts. It is painful to loose this good man but one clear lesson is the transient nature of life itself.”
“On behalf of the good people of Osun, it is our fervent prayer that Allah will grant him Aljanah Firdaus and give the people of Lagos  State the fortitude to bear the loss.”