The Edo State chapter of the Peoples Democratic Party (PDP) and the All Progressives Congress (APC)-led state government are at odds following the Edo State Assembly’s approval of a N100 billion loan request by Governor Monday Okpebholo.
The House of Assembly approved the loan on Tuesday, stating it was intended for infrastructural development across the state.
Dr. Anthony Aziegbemi, Chairman of the Edo PDP Caretaker Committee, issued a statement expressing strong concerns over the loan. He stated that according to the Debt Management Office, Edo’s domestic debt stood at ₦112 billion as of December 31, 2024.
“If accessed, this loan means that the current administration would have doubled Edo’s debt in just eight months, what took 34 years to accumulate,” he said.
Aziegbemi further alleged a lack of transparency, claiming that details regarding projects, contractors, interest rates, and timelines have not been disclosed to the public. He emphasized that Edo citizens deserve to know the financial commitments being made in their name and the burden placed on future generations. He also questioned why the loan was allegedly being sourced from commercial banks with high-interest rates instead of development finance institutions with lower rates.
The PDP also raised concerns about the reported decline in internally generated revenue (IGR) from eight billion to two billion, despite claims of generating N10 billion monthly. Aziegbemi reminded the state government and Assembly that the Freedom of Information Act 2011 applies to all levels of government and disclosed that the PDP would file an official FOI request demanding full loan transparency, including details of all projects to be financed, contractors’ information, the full loan agreement, and assembly records.
In response, Fred Itua, Chief Press Secretary to Governor Okpebholo, clarified that the Edo government is not obtaining a direct N100 billion loan. He stated that the state government is acting as a guarantor to contractors, enabling them to secure funding for key infrastructure projects from First Bank. He explained that this innovative funding model allows selected contractors to access funds directly, supported by the state’s financial guarantee, with disbursements tied directly to project-specific needs. The facility has a total tenure of 40 months.
