Edo State chapter of the Peoples Democratic Party, PDP, on Wednesday tackled the State Governor, Monday Okpebholo, and the State House of Assembly over the planned borrowing of N100 billion for infrastructural projects in the State.
The House of Assembly had on Tuesday approved the state governor’s request to borrow the sum of N100 billion from First Bank of Nigeria Plc for a contractor finance facility.
Reacting, the state leadership of PDP described the request by the Governor and approval by the State House of Assembly as unacceptable, reckless, and dangerous borrowing.
A statement by Dr Tony Aziegbemi,
Chairman, Edo PDP Caretaker Committee and made available to newsmen on Wednesday in Benin City said between August 27, 1991 when the state was created and December 31, 2024 its domestic debt profile stood at N112, 998,966, 385,30 billion.
Aziegbemi opined that whereas it took 34 years for all Governors of the state to incur N112billion debt, it is only taking Governor Okpebholo less than eight months to incur N100 billion.
According to him, the Peoples Democratic Party (PDP) in Edo State expresses grave concern over the recent approval by the Edo State House of Assembly for Governor Monday Okpebholo to obtain a One Hundred Billion Naira loan from First Bank of Nigeria.
“According to the Debt Management Office (DMO), Edo State’s total domestic debt since creation on 27 August 1991 as at December 31, 2024, stood at One Hundred and Twelve Billion Naira (N112,000,000.00).
“If this new loan is accessed, Senator Okpebholo would have effectively doubled the state’s domestic debt profile in less than eight months.
“It took 34 years for all governors of Edo State to incur N112 Billion Debt, it is taking Sen. Monday Okpebholo less than 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.
“What is particularly disturbing is the complete absence of transparency surrounding this loan.
“No detailed breakdown of proposed projects has been made public. No information has been provided regarding the identity of nominated contractors, the interest rate, repayment terms, or the timeline for execution.
“It is unacceptable that such a significant financial obligation is being incurred without public scrutiny or clear justification. The once vibrant State Assembly has abandoned its constitutional duty to rein in the excesses of the Executive Branch of Government.
“The State Assembly must be aware that infrastructure loans of this magnitude are ordinarily sourced from development finance institutions on low-interest rate/concessional terms. Securing such a facility from a commercial bank with high interest rates is both fiscally irresponsible and economically short-sighted.
“At the prevailing interest rate of 30% and add-ons, Edo State will be paying 35 billion Naira annually just as interest. This is alarming and acutely not sustainable.
“When we raised alarm about the fall in the IGR from about N8bn monthly during the immediate past government to about N2bn, Okpebholo and his hirelings in their jaundiced response lied to Edo people that the State was generating N10bn monthly.
“We are also aware that the Okpebholo government inherited over N50 billion in the state treasury from the Godwin Obaseki-led administration less than eight months ago.
“So, how do we justify that a government that inherited such an amount and claims to be generating over N10bn monthly in IGR is now running to First Bank Nigeria Plc to borrow N100 billion?
“It only exposes the fiscal irresponsibility of the Okpebholo government and affirms the drastic fall in the IGR, thereby forcing them to resort to reckless borrowing to cover up the shortfall.
“This lack of transparency is especially troubling given the prevailing political context. With the Supreme Court set to deliver judgment in the appeal over the disputed 2024 governorship election which the APC stole in collusion with INEC, 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.
“It appears to be nothing but another conduit pipe to slush funds, which Okpebholo plans to service his endless list of godfathers and political thugs who helped him steal the people’s mandate during the last governorship election.
“We reject this dangerous resort to reckless borrowing and mortgaging of the future of our dear State to foot the bill of a greedy few”, he said.
Aziegbemi added that in line with the Supreme Court judgment, it would explore the Freedom of Information Act 2011 to obtain detailed information about the loan.
He listed some of the detailed information to request, including a full list of the infrastructure projects to be financed, names, and profiles of the nominated contractors.
Others are the full loan agreement, including interest rate, tenure, repayment terms, and disbursement schedule, and all records of proceedings and resolutions related to the loan by the State Executive Council.
While rejecting the loan, he told the governor and his handlers that Edo people would not idly watch them mortgage the future of the State and its people to fund and satisfy the insatiable appetite and opulent lifestyle of his godfathers and political cronies.
The PDP chairman, who warned the management of First Bank Nigeria Plc against granting the loan, added that the people of Edo deserve to know what commitments are being made on their behalf and at what cost.
