The Edo State Government has clarified that it is not taking a direct N100bn loan, but instead guaranteeing a credit facility for contractors handling major infrastructural projects across the state.
This clarification was captured in a statement on Wednesday, and signed by the state governor’s Chief Press Secretary, Fred Itua.
The clarification followed public concerns over the recent approval of the Edo State House of Assembly for the credit facility.
On Tuesday, the Edo House of Assembly approved a N100bn loan for Governor Monday Okpebholo to carry out infrastructural development across the state.
The approval followed Monday’s letter, addressed to the Speaker of the House, Blessing Agbebaku, stating that the contractual loan facility would be sourced from First Bank Nigeria Plc.
“The development of critical infrastructural projects is aimed at enhancing transportation, creating employment opportunities, improving the quality of life for citizens, and boosting the economic growth in the state,” the letter reads partly.
However, the government on Wednesday said it was only acting as a guarantor for selected contractors, who would receive funds directly from First Bank Plc to execute priority infrastructure projects.
Itua explained that while approval was granted for a N100bn facility, “the Edo State Government is not obtaining a loan of N100bn.”
He said the facility is part of an innovative financing strategy introduced by the Okpebholo-led administration.
“The arrangement is specifically a contractor loan facility designed to empower nominated contractors with direct access to capital,” he said, adding that the government’s role is to guarantee the financial transaction, not to borrow.
He noted that the loan has a tenure of 40 months and that the government has committed to fulfilling its guarantee obligations by ensuring timely payments to the bank, thereby facilitating uninterrupted project delivery.
The projects expected to benefit from the facility include the Construction of a flyover bridge at Adesuwa Road and the Construction of Evbhukhu–Sapele Road with drainage in Oredo LGA.
Others include Eguaolor–Iguomo–Uvbenisi–Oza Road in Uhunwonde LGA and Okpagha–Amufi Road with spurs to several streets in Uhunwonde/Ikpoba Okha LGA.
The rest are Internal roads in Ogbeghe and Old Sapele Road, Benin City; Uhie Road off Sapele Road, Benin City; Internal roads in Ugieda village, South Ibie, Etsako West LGA and Ekpoma–Uromi–Ubiaja road in Esan
Itua described the strategy as a “pragmatic and fiscally responsible model”, designed to ensure that contractors have adequate funding to complete projects efficiently.
“This innovative approach is a deliberate move by Governor Okpebholo’s administration to accelerate the development of key infrastructure,” the statement added.
The government urged the public to disregard reports suggesting it was taking on new debt and reaffirmed its commitment to transparency and efficient project delivery across the state.