The Peoples Democratic Party (PDP) in Edo State has expressed concern over the recent approval by the Edo State House of Assembly for Governor Monday Okpebholo to obtain a N100 billion loan.
The state assembly, on Tuesday, approved a ₦100 billion loan facility from First Bank of Nigeria PLC to support Governor Monday Okpebholo’s administration in delivering key infrastructural projects across the state.
The PDP chairman in the state, Tony Aziegbemi, in a statement issued in Benin on Wednesday, said a report by 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).
He added that if the new loan is accessed, Okpebholo would have effectively doubled the state’s domestic debt profile in less than Eight months.
“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.
“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 timeline for execution.
“The people of Edo deserve to know what commitments are being made on their behalf and at what cost.
“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 monthly, Okpebholo and his hirelings in their jaundiced response lied to Edo people that that the State was generating N10bn monthly,” the chairman said.
