The Edo State chapter of the Peoples Democratic Party (PDP) has condemned the approval by the State House of Assembly for Governor Monday Okpebholo to obtain a N100 billion loan from First Bank of Nigeria Plc for infrastructural projects, describing the move as “reckless, unacceptable, and dangerous.”
In a statement issued on Wednesday in Benin City, Dr. Tony Aziegbemi, Chairman of the Edo PDP Caretaker Committee, expressed outrage over the borrowing plan, warning that it poses a serious threat to the state’s fiscal sustainability.
According to Aziegbemi, Edo’s total domestic debt between the state’s creation on August 27, 1991, and December 31, 2024, stood at approximately N112.9 billion.
He said the new borrowing, if accessed, would nearly double the state’s debt burden in less than eight months of Okpebholo’s administration.
“It took 34 years for all previous governors of Edo State to accumulate N112 billion in debt. Senator Okpebholo is about to add N100 billion in just under eight months. This is alarming and raises questions about the competence and intentions of this APC-led administration,” Aziegbemi stated.
The PDP further criticized the lack of transparency surrounding the loan, pointing out that no details had been made public regarding the proposed projects, contractors, interest rates, repayment plans, or execution timelines.
“It is unacceptable that such a monumental financial commitment is being undertaken without public scrutiny. The once-vibrant State Assembly has abandoned its constitutional duty to act as a check on the Executive,” the statement added.
Aziegbemi argued that development loans of such magnitude are usually sourced from development finance institutions with concessional interest rates. He warned that borrowing from a commercial bank at prevailing rates—estimated at 30%—would lead the state to pay over N35 billion annually in interest alone.
The PDP chairman also alleged that the Okpebholo administration had inherited over N50 billion from the immediate past government and questioned the rationale behind the fresh loan, especially when the government claims it is generating N10 billion in monthly IGR.
“This only exposes the fiscal irresponsibility of the Okpebholo government and suggests a drastic fall in internally generated revenue,” he said.
The party expressed concern over the timing of the borrowing, coming as the Supreme Court is yet to deliver judgment on the disputed 2024 governorship election.
“It appears to be nothing but a slush fund to service political godfathers and cronies who helped subvert the will of the people during the last election,” the statement read.
Aziegbemi announced that the party would invoke the Freedom of Information Act to demand full disclosure of the loan agreement, including:
- A list of infrastructure projects to be financed
- Names and profiles of nominated contractors
- The loan’s interest rate, tenure, and repayment terms
- All resolutions and minutes related to the loan approval
He warned First Bank of Nigeria Plc against disbursing the loan, stressing that the people of Edo State deserve full transparency on the commitments being made on their behalf.
“Edo people will not sit idly while their future is mortgaged to fund the greed and luxury of a few,” he concluded.
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