Edo Govt Shocks Critics: ‘We Didn’t Borrow ₦100bn – We Only Backed Contractors!’

Edo State authorities have dismissed reports suggesting the government obtained a ₦100 billion loan from First Bank for infrastructure development.

The Edo State Government has addressed recent reports suggesting it obtained a ₦100 billion loan from First Bank of Nigeria Plc, clarifying that it is not acquiring the funds directly but rather standing as a guarantor for contractors engaged in critical infrastructure projects across the state.

The clarification comes following the Edo State House of Assembly’s approval of the facility during a plenary session held on Tuesday. The approval was in response to a letter sent by Governor Monday Okpebholo, dated June 23, 2025, and addressed to the Speaker of the House, Rt. Hon. Blessing Agbebaku.

The letter, 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,” stated that the decision was reached during the State Executive Council’s meeting on June 17, 2025.

Signed by the Secretary to the State Government, Umar Musa Ikhilor, the letter explained that the funds, while sourced from First Bank, would not be disbursed to the state government directly but rather to selected contractors responsible for executing key infrastructural projects.

Governor Okpebholo, in the letter, emphasized that the facility would support projects aligned with the administration’s five-point development agenda under the SHINE framework. These initiatives aim to drive urban renewal, enhance transportation, create employment, and improve the quality of life in Edo State.

During the plenary, Speaker Blessing Agbebaku expressed full support for the request, citing anticipated benefits for his constituents. “I support this loan facility 100 percent,” he said, noting that the Governor had committed to implementing projects in his constituency.

However, in a statement issued on Wednesday, Fred, the Chief Press Secretary to the Governor, clarified the nature of the financial arrangement. He reiterated that “the Edo State Government is not securing a loan but rather providing a guarantee for contractors to access funds from First Bank for project execution.”

He further described the initiative as a contractor finance model aimed at fast-tracking infrastructure development through direct funding to contractors. The facility has a 40-month tenure and is backed by the state’s commitment to ensure timely repayment to the bank.

Some of the priority projects to be executed under this arrangement include:

• A flyover bridge at Adesuwa Road;

• The Evbhukhu-Sapele Road with underground drainage in Oredo LGA;

• The Eguaolor-Iguomo-Uvbenisi-Oza Road in Uhunwonde LGA;

• The Okpagha-Amufi Road with spurs in Ikpoba-Okha/Uhunwonde;

• Inter-road construction in Ogbeghe and Old Sapele Road in Benin City;

• Internal roads in Ugieda village, South Ibie, Etsako West;

• A single carriageway along the Ekpoma-Uromi-Ubiaja road in Esan.

Fred added that the innovative financing strategy demonstrates Governor Okpebholo’s pragmatic and fiscally responsible approach to governance, aimed at ensuring that contractors are financially equipped to complete projects swiftly and effectively for the benefit of all Edo citizens.