Do not borrow to pay salaries, Ogunyemi, a financial expert, advises Adeleke

 

Dr. Tunji Ogunyemi, an economist at Obafemi Awolowo University in Ile-Ife, has issued a warning to Governor Ademola Adeleke of Osun State, advising him against resorting to bank loans to cover the salaries of the state's civil servants.

In an interview on a radio program in Osogbo, Dr. Ogunyemi emphasized that Governor Adeleke should prioritize paying salaries based on the available funds in the state's coffers. He discouraged the practice of borrowing money from banks specifically for the purpose of settling salaries.

Dr. Ogunyemi stressed the importance of utilizing the Osun Inland Revenue Service (OIRS), the state's agency responsible for generating internal revenue, to increase funds rather than relying on borrowed money for salary payments.

He asserted, "There must be a moratorium now on borrowing; Osun must never borrow to pay salaries. You pay salary only based on what you have, not by going to the bank and borrowing with the intention of paying salaries. It should never happen."

Furthermore, Dr. Ogunyemi urged Governor Adeleke to seek guidance from his predecessor, Adegboyega Oyetola, regarding his successful management of Osun State without resorting to borrowing for four years.

"The era of politicking is over. The Governor should approach Oyetola and learn from him how he was able to govern Osun State during that critical period without depleting the state's resources," Dr. Ogunyemi advised.

He commended the remarkable performance of Governor Oyetola and encouraged Governor Adeleke to acquire insights from his predecessor's effective strategies for governance and financial management. By doing so, Governor Adeleke can gain valuable knowledge on how to navigate the challenges of sustaining Osun State without depending on loans.