Edo Govt breaks silence: “We didn’t borrow ₦100bn”

By Jethro Ibileke

The Edo State Government has refuted claims that it obtained a ₦100 billion loan from First Bank of Nigeria, clarifying that the facility in question is a contractor financing arrangement for infrastructural projects, with the government acting solely as guarantor.

The clarification follows the Edo State House of Assembly’s approval of the facility during its plenary session on Tuesday.

The approval stemmed from a formal request by Governor Monday Okpebholo, contained in a letter dated June 23, 2025, and addressed to Speaker Blessing Agbebaku.

The governor noted that the decision was reached during the State Executive Council meeting on June 17.

Titled “Request for Legislative Approval of the Sum of ₦100 Billion from the First Bank of Nigeria Plc for the Provision of Contractor Finance Facility for Development of Various Infrastructural Projects in Edo State,” the letter was signed by the Secretary to the State Government, Umar Musa Ikhilor.

It explained that the loan would be channelled directly to contractors for the execution of key infrastructure projects in line with the SHINE Development Framework of the Okpebholo administration.

In his remarks during the plenary, Speaker Agbebaku expressed full support for the approval, stating that he had projects in the budget that the governor had promised to execute.

“If my people will benefit from this facility, why wouldn’t I support it? I support it 100 percent,” he said.

However, in a statement issued on Wednesday, Mr. Fred Latimore, Chief Press Secretary to the Governor, dismissed reports suggesting that the government had directly secured a ₦100 billion loan.

He stressed that the facility was not a conventional government loan but a contractor finance mechanism designed to fast-track infrastructure development across the state.

“We wish to state unequivocally that while the Edo State House of Assembly has indeed granted its approval for a facility amounting to ₦100 billion, the Edo State Government is not obtaining a loan of ₦100 billion,” the statement read.

“Rather, the Edo State Government is strategically positioned as a guarantor for contractors handling critical infrastructural projects across the State.”

According to Latimore, the arrangement allows nominated contractors to access funds directly from First Bank based on their project demands, while the state government guarantees the repayment over a 40-month period.

He described the model as both fiscally responsible and innovative, noting that it is intended to empower contractors without plunging the state into fresh debt.

He added that Governor Okpebholo remains committed to fulfilling the government’s guarantee obligations and ensuring timely payments to the bank, thereby supporting seamless execution of projects aimed at improving the lives of Edo residents.

Among the projects targeted for execution are major road constructions, drainage systems, flyovers, and internal roads across various parts of the state, including Benin City, Oredo, Uhunmwonde, Ikpoba-Okha, Etsako West, and Esan.

Latimore stressed that this development financing model underscores the governor’s resolve to deliver tangible infrastructure across Edo without compromising the state’s fiscal health.

He reiterated that the initiative is strictly contractor-based and aimed at accelerating delivery timelines while maintaining financial discipline.

The government’s position, he said, is aimed at correcting public misconceptions and reinforcing confidence in its transparent approach to infrastructure funding.