…Govt Acting Only As Guarantor —CPS
The Edo State chapter of the Peoples Democratic Party (PDP) has raised alarm over what it describes as a “criminally reckless” plan by Governor Monday Okpebholo to secure a ₦100 billion loan facility from First Bank of Nigeria; a move the opposition says will effectively double the state’s domestic debt burden in under eight months.
In a strongly worded statement issued on Tuesday, the PDP condemned the Edo State House of Assembly for approving the controversial loan request, warning that it threatens the long-term fiscal health of the state.
Quoting data from the Debt Management Office (DMO), the PDP noted that Edo’s total domestic debt since the state’s creation in 1991 stood at ₦112 billion as of December 31, 2024. “It took 34 years by all governors of Edo State to incur ₦112 billion debt. It is taking Senator Monday Okpebholo just eight months to double it,” the statement read.
The opposition party further decried the lack of transparency surrounding the loan, stating that no public information has been made available regarding the proposed use of the funds, the identity of nominated contractors, or the loan’s terms; including interest rates, repayment schedule, or project timelines.
“At a prevailing interest rate of 30%, with additional fees, Edo State could be paying ₦35 billion annually in interest alone. This is fiscally irresponsible and economically unsustainable,” the statement said.
Dr. Tony Aziegbemi, Chairman of the PDP Caretaker Committee in Edo, who signed the release, said the party is particularly alarmed that such a significant financial decision is being taken without due diligence, accountability, or public engagement.
“Loans of this magnitude are ordinarily sourced from concessional lenders such as development finance institutions. Securing such a facility from a commercial bank at high interest rates is reckless,” Aziegbemi added.
The PDP also questioned the need for the loan, pointing out that the Okpebholo administration inherited over ₦50 billion from the immediate past Obaseki-led government and had publicly claimed to be generating over ₦10 billion monthly in Internally Generated Revenue (IGR).
“If this were true, what then justifies running to First Bank for a ₦100 billion loan? This only exposes the fiscal recklessness of the APC-led administration and confirms our earlier warnings about a drastic fall in IGR to as low as ₦2 billion monthly,” the party stated.
The opposition also accused the governor of attempting to use the loan as a slush fund to settle political debts. “This appears to be another conduit to funnel state resources to service the endless list of godfathers and political thugs who helped Okpebholo steal the people’s mandate during the last election,” Aziegbemi alleged.
With the Supreme Court judgment on the disputed 2024 governorship election imminent, the PDP said the timing of the loan raises suspicion and calls for vigilance.
The party further issued a warning to First Bank Nigeria, urging the financial institution to tread carefully, stressing that “Edo’s resources belong to the people, not to any individual or political party seeking to cling to power.”
Citing a recent Supreme Court judgment in Comrade Austin Osakue & Ors v. Edo State, which affirmed the applicability of the Freedom of Information Act to all levels of government, the PDP said it will immediately file formal FOI requests to compel the Edo State Government to disclose the full list of projects the loan is intended to finance; names and profiles of nominated contractors; the loan agreement, including interest rates and repayment terms; and records of all proceedings and resolutions of the Executive Council and the State Assembly related to the loan
“We say no to this reckless and dangerous borrowing. Edo people will not stand by and watch their future mortgaged to satisfy the opulent lifestyles of political cronies,” the statement concluded
Reacting, the Chief Press Secretary to Governor Monday Okpebholo, Fred Itua noted that Edo government was not obtaining a direct N100 billion loan in spite of the Assembly’s approval of the facility.
In a statement, Itua stated that the state government was acting as a guarantor to contractors, enabling them to secure funding for key infrastructure projects from First Bank.
He explained that the facility allowed selected contractors to access funds directly, supported by the state’s financial guarantee to ensure smooth project implementation.
“Governor Okpebholo’s administration is adopting this innovative funding model to fast-track infrastructure development across Edo, with disbursements tied directly to project-specific needs.
“First Bank Plc will release funds to contractors based on verified project requirements, with a total facility tenure of 40 months,” he said.
