June 25 2025
Press Release
Okpebholo’s Criminally Reckless N100 Billion Loan Will Double Edo’s Local Debt
……PDP Demands Transparency and Immediate Halt to Irresponsible Borrowing
……Says Reckless Borrowing A Confirmation of Drastic Fall in IGR
…….Warns First Bank PLC
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, Sen. 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.
We are also aware that the Okpebholo government inherited over ₦50 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 ₦100 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.
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.
We also wish to remind the Edo State Government and House of Assembly that in April 2025, the Supreme Court delivered a landmark ruling in Comrade Austin Osakue & Ors v Edo State, expressly affirming that the Freedom of Information Act 2011 applies to all levels of government in Nigeria, including states.
Relying on this binding judgment, the PDP will be making formal Freedom of Information requests to obtain:
- 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
- All records of proceedings and resolutions related to the loan by the State Executive Council and House of Assembly
We say no to this reckless and dangerous borrowing and want to remind Okpebholo and his handlers that Edo people will 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.
Dr Tony Aziegbemi,
Chairman,
Edo PDP Caretaker Committee
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