The Edo State chapter of the All Progressives Congress (APC) has criticized the state government over the approval of an N11.3 billion loan by the state house of assembly.
The Edo State House of Assembly recently approved the sum of N11.3 billion loan for the state government.
Governor Godwin Obaseki stated that the loans are for agricultural palliatives, contractor finance, bank guarantee, procurement of 50 CNG buses for the Edo City Transport Services (ECTS), construction of roads, and drainages in the new Coral city in Benin, among others.
The loans are to be sourced from First Bank of Nigeria.
Reacting to the approval, the State Acting Chairman of APC, Jarrett Tenebe, described the loan as unnecessary and warned that it would plunge the state into financial distress.
Tenebe alleged that the state already has a debt profile of between N135 billion and $36.6 billion.
Tenebe criticized the Governor Obaseki-led government, accusing it of seeking to leave the state in ruins by requesting a loan facility of N17.5 billion.
He also alleged that the government deceived the people by requesting N9 billion when the actual amount was N17.5 billion.
Furthermore, Tenebe claimed that the lawmakers were recalled from recess by the speaker of the house for the immediate approval of N9 billion loan.
However, after opposition lawmakers questioned the rationale for the loan, it was discovered that the facility was not N9 billion but a figure wrapped in secrecy as much as N17.5 billion.
He alleged that opposition lawmakers rejected and refused to be part of the approval.
Tenebe concluded by alleging that the state government has designed the loan as a conduit to divert state funds for the forthcoming governorship election.
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