Afenifere Chieftain and Peoples Democratic Party (PDP) governorship aspirant in Ekiti State, Prince Dayo Adeyeye has described as worrisome and alarming, the debt profile of the State under the Governor Kayode Fayemi; saying; "It would have even been better if the huge loan already obtained by the State government was spent on income-generating projects."

The Fiscal Responsibility Commission (FRC) had in its report, said the total indebtedness of Ekiti State stood at N35.98bn as at December 31, 2011. FRC said the State debt profile of N35.98bn as against its revenue profile of N44.97bn was against the limit of 50 percent of annual revenue in the previous 12 months set by the Debt Management Office (DMO).

Reacting through the Director General of Prince Adedayo Adeyeye Movement (PAAM), Hon. Bisi Kolawole, the governorship aspirant called on the Central Bank of Nigeria (CBN), Security and Exchange Commission (SEC), and other financial clearing houses to put a stop to the rate at which the state government is obtaining loans.

He disclosed that as at October 15, 2010 that Fayemi assumed office, Ekiti State Bank loan and borrowings amounted to N7.5 billion and these included the outstanding loans of N3.4 billion obtained by civil servants in the state on which deductions were being made from their salaries.

He said there was also counterpart fund borrowed from the Millennium Development Goals (MDGs) and State Universal Basic Education Board (SUBEB) for which the balance of N3 billion was left in various accounts of MDGs and SUBEB.

"The reality is that, Ekiti State debt profile was less than N5 billion when Fayemi assumed office and for the debt to have risen from about N5 billion in October 2011 to N35.98 billion in December 31, 2011 is alarming.

"It simply indicates that Fayemi's government borrowed N30 billion with 12 months!

"And more worrisome is the fact that the borrowed funds were not spent on income generating projects, through which the loans could be repaid.

"Instead, they are spending borrowed funds on multi billion naira contracts to execute questionable projects like building new government house, civic centre, governor's office, government arcade, etc.

"Does it make any economic sense for borrowed fund to be used to build new government house and governor's office when nothing is wrong with the existing ones?

"Therefore, Ekiti people should prevail on Fayemi to stop running government on credit by spending in advance, funds that should accrue to the State in 30 years, thereby keeping the present and future generations of Ekiti people in perpetual bondage of debt," Adeyeye said.