Just in: Edo government denies securing ₦100 billion contractor loan

DDM News

The Edo State Government has dismissed public concerns over reports suggesting it secured a ₦100 billion loan, clarifying that the facility recently approved by the State House of Assembly is not a direct loan to the government.

Diaspora Digital Media (DDM) gathered that the clarification was made on Wednesday through a press statement issued by Fred Itua, Chief Press Secretary to Governor Monday Okpebholo.

The government explained that it is not borrowing the ₦100 billion for itself but is only acting as a guarantor for contractors involved in key infrastructure projects across the state.

According to the statement, the arrangement is a strategic loan facility designed to empower qualified contractors to execute vital infrastructure projects.

The fund, to be disbursed by First Bank Plc, will go directly to the contractors, not the state government, and is expected to be repaid within a 40-month period.

The government emphasized that its role is limited to providing financial guarantees that ensure contractors meet loan conditions.

This approach, it said, will expedite project execution without adding to the state’s debt burden.

Fred Itua stated, “The Edo State Government is fully committed to fulfilling its guarantee obligations by ensuring timely payments to the bank as agreed, thereby guaranteeing the seamless and expeditious execution of these vital projects.”

This financial arrangement, described as both innovative and fiscally responsible, is part of Governor Okpebholo’s broader plan to fast-track development across Edo.

It aims to remove bottlenecks typically associated with public project financing by enabling contractors to access capital directly and begin work without waiting for lengthy bureaucratic disbursements.

Among the major infrastructure projects earmarked for execution under the facility are: the construction of a flyover bridge at Adesuwa Road; the construction of Evbhukhu-Sapele Road with a drainage system in Oredo LGA; and the Eguaolor-Iguomo-Uvbenisi-Oza Road with a spur to Ohe community in Uhunwonde LGA.

Other listed projects include the Okpagha-Amufi Road with extensions to AG Bonze Street, Daddy J Road, and Michael Agbedon Street in Uhunwonde/Ikpoba Okha LGAs; internal roads in Ogbeghe and Old Sapele Road in Benin City; Uhie Road off Sapele Road; internal roads in Ugieda village, South Ibie, Etsako West LGA; and the single carriageway of Ekpoma-Uromi-Ubiaja Road in Esan.

The governor’s office stressed that the funds would not pass through government coffers but would go straight to the contractors based on project milestones and specific needs, a measure designed to prevent misuse and ensure accountability.

This clarification comes in response to earlier reports suggesting the state had secured legislative approval to take on a ₦100 billion debt, which triggered public concerns over fiscal responsibility and transparency.

The Okpebholo administration maintains that this model reflects a strategic and efficient means of infrastructure delivery without placing long-term financial strain on the state.

The approach also showcases a shift from traditional government borrowing to performance-based project financing.

With the Edo State Government promising transparency and regular updates on the use and repayment of the contractor-backed facility, residents have been urged to support ongoing efforts to accelerate development across the state.

The administration reaffirmed its commitment to delivering quality infrastructure while maintaining prudent financial management, stating that the ultimate goal is to improve the quality of life for Edo citizens.

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