The Edo State House of Assembly’s approval of a N100 billion loan request by Governor Monday Okpebholo has ignited a fierce political battle between the state government and the Edo chapter of the Peoples Democratic Party (PDP). The loan, aimed at financing infrastructural development across the state, was approved on Tuesday, sparking immediate backlash from the opposition.
Dr. Anthony Aziegbemi, Chairman of the Edo PDP Caretaker Committee, raised alarm over the state’s rising debt profile. According to him, data from the Debt Management Office (DMO) indicates that Edo’s total domestic debt stood at N112 billion as of December 31, 2024. He argued that the loan, if accessed in full, would nearly double the state’s debt within just eight months—an amount that previously took 34 years to accumulate.
The PDP chieftain expressed concerns about the opacity surrounding the loan, noting the absence of critical details such as project specifics, contractor identities, interest rates, and repayment timelines. “It is unacceptable to incur such debt without scrutiny or explanation,” Aziegbemi said.
PDP Demands Transparency and Accountability
Aziegbemi criticized both the Edo State Assembly and the APC-led government for what he described as a failure in constitutional oversight. He accused lawmakers of rubber-stamping a vague financial commitment without subjecting it to thorough public debate or scrutiny.
“Ordinarily, loans of this magnitude are sourced from development finance institutions offering single-digit interest rates, not commercial banks demanding rates as high as 30 percent,” he lamented. He also questioned the administration’s financial management, recalling that PDP had earlier flagged a drop in internally generated revenue (IGR) from N8 billion to N2 billion, despite government claims of N10 billion monthly revenue.
Furthermore, Aziegbemi queried the whereabouts of over N50 billion reportedly inherited from the Obaseki administration less than eight months ago. “Where has all the money gone?” he asked pointedly.
Invoking the Freedom of Information (FOI) Act 2011 and citing the recent Supreme Court ruling in Osakue v. Edo State, Aziegbemi announced that the PDP would file an FOI request demanding full disclosure of the loan agreement, the names and profiles of contractors, and assembly records pertaining to the approval.
–Government Defends Loan Structure as Innovative
In response, the Chief Press Secretary to Governor Okpebholo, Fred Itua, dismissed the PDP’s concerns, clarifying that the state was not taking a direct N100 billion loan. Instead, he explained that the government is providing a financial guarantee to contractors who will independently access funding from First Bank.
According to Itua, the innovative funding model was designed to accelerate infrastructure development without burdening the state with direct borrowing. “The facility allows contractors to secure funds directly, backed by the state’s guarantee. Disbursements are tied strictly to verified project milestones,” he stated.
He further explained that the facility has a tenure of 40 months and that funds will be released in tranches based on specific project needs. This approach, Itua emphasized, minimizes the risk of misappropriation and ensures that funds are applied directly to critical infrastructure projects.
Details of the Funding Mechanism Remain Contentious
Despite the government’s explanation, questions persist about the specifics of the funding arrangement. Critics argue that whether the loan is direct or through contractor guarantees, the financial obligation ultimately falls on Edo taxpayers should any contractor default.
The PDP insisted that without clarity on the full terms of the guarantee—including collateral, repayment structures, and possible penalties—the deal poses significant risks to the state’s fiscal health. “A loan by proxy is still a debt obligation,” Aziegbemi stressed.
Civil society organizations and financial analysts have also joined the call for the Edo State government to publish the full loan documentation, including the Memorandum of Understanding (MoU) with First Bank and contracts with the implementing firms.
Public Outcry Grows Amid Legal, Political Threats
The growing controversy has sparked widespread public debate in Edo State, with residents and stakeholders demanding greater transparency in the management of public funds. Some accuse the government of mortgaging the future of Edo citizens for political expediency, while others believe the funding is necessary to address the state’s glaring infrastructure deficits.
The Edo PDP has vowed to explore all legal options to halt the loan process if transparency demands are not met. “Edo PDP says no to mortgaging our future. We will not stand by while our people’s resources are hijacked to fund private political greed,” Aziegbemi declared.
As tension mounts, all eyes remain on the Edo State government to either release comprehensive details about the loan arrangement or brace for sustained political and legal pushback ahead of the upcoming governorship elections.
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