Edo PDP Faults Gov Okpebholo’s N100bn Loan, Says Another Conduit Pipe to Slush Funds
By Simeon OSAJIE
The Edo State chapter of the Peoples Democratic Party (PDP) has expressed concern over the recent approval of N100bn loan to the state governor, Senator Monday Okpebholo, by the State House of Assembly.
The Edo State House of Assembly (EDHA) had on Tuesday approved a N100 billion loan facility from First Bank of Nigeria (FBN) PLC to support Governor Monday Okpebholo’s administration in delivering key infrastructural projects across the state.
In a statement signed by the Chairman, Edo PDP Caretaker Committee, Dr. Tony Aziegbemi made available to journalists, he said, “If this new loan is accessed, Governor Okpebholo would have effectively doubled the state’s domestic debt profile in less than Eight months.”
While quoting the Debt Management Office (DMO), the PDP noted that “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).
“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 opposition lamented that “what is particularly disturbing is the complete absence of transparency surrounding this loan,” stressed that “the people of Edo deserve to know what commitments are being made on their behalf and at what cost.”
The PDP continued: “No information has been provided regarding the identity of nominated contractors, the interest rate, repayment terms, or timeline for execution.
“It is unacceptable that such a significant financial obligation is being incurred without public scrutiny or clear justification.”
Aziegbemi, who expressed worry that “the once vibrant State Assembly has abandoned its constitutional duty to rein in the excesses of the Executive Branch of Government,” reminded the lawmakers 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 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 who claims to be generating over N10bn monthly in IGR is now running to First Bank Nigeria Plc to borrow N100 billion. It only but 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.”
The PDP Chairman who argued that the loan “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,” demanded a “full list of the infrastructure projects to be financed; names and profiles of the nominated contractors; 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 and House of Assembly.”
