Edo PDP questions N100bn loan approved for Okpebholo, demands project details as APC says state only guarantees contractors under a bank facility
[dropcap]E[/dropcap]do loan transparency dispute deepens political tension between the Peoples Democratic Party and the All Progressives Congress-led state government, following the approval of a ₦100 billion loan request by Governor Monday Okpebholo.
Also read: Edo PDP accuses Governor Okpebholo of N2.8 billion bribery scheme to defect lawmakers to APC
The state Assembly passed the loan proposal on Tuesday, stating that it would be used to fund infrastructural development across Edo State.
However, the PDP has rejected the approval process, warning that the debt burden could be disastrous if not checked.
Dr Anthony Aziegbemi, chairman of the Edo PDP caretaker committee, released a statement in Benin on Wednesday raising several objections.
According to him, the new borrowing would double Edo’s domestic debt, which the Debt Management Office placed at ₦112 billion as of December 2024.
He noted that it took 34 years to reach the existing figure, while the current government could match that level in only eight months. “It is unacceptable to incur such debt without scrutiny or explanation,” Aziegbemi said.
The PDP alleged that the state Assembly failed in its oversight duties by approving the loan without disclosing key information such as project names, contractor details, repayment timelines, or interest terms.
Aziegbemi insisted that Edo residents had the right to know what financial burdens were being committed in their name.
He also criticised the state for considering commercial loans, which he claimed could attract interest rates of up to 30 percent, rather than sourcing development funds at lower rates.
He further questioned why the government needed such massive borrowing despite reportedly inheriting over ₦50 billion from the Obaseki administration less than a year ago.
Aziegbemi stated that PDP would submit a formal Freedom of Information request, invoking a recent Supreme Court decision that upheld public access to state financial records.
The opposition is now demanding full details of the proposed projects, including contractors’ names and profiles, the loan agreement itself, and legislative records.
Reacting to the criticism, Governor Okpebholo’s Chief Press Secretary, Fred Itua, issued a statement denying that the state was directly borrowing the full amount.
He clarified that the administration was merely guaranteeing contractors who would obtain funding from First Bank Plc.
Under the model, selected contractors would receive funds tied to verified project needs, with disbursements overseen by the bank and a facility tenure of 40 months.
According to Itua, this funding method is part of an innovative plan by the government to fast-track infrastructure delivery.
He added that the arrangement ensures accountability and reduces the risk of misusing public resources. Despite this explanation, concerns over transparency and future debt exposure continue to stir public debate.
The growing Edo loan transparency dispute has now evolved into a wider conversation about responsible governance, fiscal accountability, and the power of legislative oversight.
Also read: Edo APC promises Tinubu 2.5 million votes in 2027
Both parties appear set for a prolonged face-off as PDP pushes for disclosure while the APC defends its development-focused strategy.
Oreoluwa is an accountant and a brand writer with a flair for journalism.
