The leadership of Peoples Democratic Party (PDP) in Edo state, Wednesday, berated governor Monday Okpebholo’s over the latter’s decision to borrow N100 billion.
The party also faulted the timing of the loan move because according to them, “it came as the Supreme Court is set to deliver judgment in the appeal of the 2024 governorship election.
“The timing of this borrowing calls for vigilance. Edo’s resources belong to the people, not to any party or individual seeking to hold on to power through the courts.”
Chairman of the PDP in Edo state, Dr. Anthony Aziegbemi, who disclosed this in a statement, alleged that the lack of detailed transparency in the loan, is especially troubling given the prevailing political context.
Aziegbemi referenced data from the Debt Management Office (DMO), which put Edo tate’s total domestic debt N112,000,000.00 since its creation on 27 August, 1991 to December 2024.
He noted, that Governor Okpebholo would have effectively doubled the state’s domestic debt profile in less than Eight months if the new loan is accessed.
According to the PDP chair, “it took 34 years by all governors of Edo State to incur 112 Billion Debt. It is taking Sen. Monday Okpebholo Eight months to double it.
“This is an alarming development that raises serious questions about the long-term fiscal sustainability of the State; and indeed, about the financial competence of this APC led Administration.”
The Edo state House of Assembly, Monday, granted governor Monday Okpebholo’s loan request to borrow 100 billion to finance infrastructure projects across the state.
Meanwhile, Governor Okpebholo has said his administration was not obtaining a loan of N100 billion, but strategically positioned as a guarantor for contractors handling critical infrastructural projects across the state.
In a statement issued by the Chief Press Secretary (CPS), Fred Itua, explained: “the guarantee will them secure the necessary funding for project execution from First Bank Plc.”
He added that the clarification was crucial to correct any misconception arising from reports suggesting that the governor had directly obtained an approval to borrow the aforementioned sum.
“The arrangement is specifically a contractor loan facility designed to empower nominated contractors with direct access to capital for their projects, with the State’s guarantee underpinning the financial transaction,” Itua stated.