The Edo State Government has officially clarified reports surrounding the recently approved N100 billion financial facility by the Edo State House of Assembly, stating unequivocally that the state is not borrowing N100 billion.
In a statement issued on Wednesday, the government explained that what has been approved is a contractor-backed credit facility in which the Edo State Government stands as guarantor for nominated contractors handling critical infrastructure projects across the state. The arrangement allows these contractors to access funds from First Bank Plc to execute designated projects, with the state providing the financial backing to secure those loans.
This clarification became necessary following misinterpretations in some quarters suggesting that Governor Monday Okpebholo had secured direct approval to borrow N100 billion on behalf of the state.
According to the government, the initiative is a strategic, fiscally responsible mechanism designed to accelerate the pace of infrastructure delivery without overburdening the state’s debt profile. Under the arrangement, First Bank Plc will directly disburse funds to contractors based on verified project milestones, with a repayment tenure of 40 months.
Priority projects earmarked for execution under the facility include:
Construction of a flyover bridge at Adesuwa Road, Benin City
Reconstruction of Evbhukhu-Sapele Road with drainage systems in Oredo LGA
Construction of Eguaolor-Iguomo-Uvbenisi-Oza Road with a spur to Ohe community in Uhunwonde LGA
Construction of Okpagha-Amufi Road with spurs to AG Bonze Street, Daddy J Road, and Michael Agbedon Street in Uhunwonde/Ikpoba-Okha LGA
Construction of interior roads in Ogbeghe and Old Sapele Road axis, including hydrology structures in Benin City
Reconstruction of Uhie Road, off Sapele Road, Benin City
Rehabilitation of internal roads in Ugieda village, South Ibie, Etsako West LGA
Construction of a single carriageway from Ekpoma-Uromi-Ubiaja Road in Esan land, among others.
The state government reiterated its commitment to meeting its guarantee obligations by ensuring timely remittance to the bank as agreed, thereby guaranteeing uninterrupted project execution and prompt delivery.
Governor Monday Okpebholo’s administration described the model as a bold, innovative and sustainable financing strategy aimed at ensuring that infrastructure projects critical to the economic wellbeing of Edo citizens are not stalled due to financial constraints.
“This is a deliberate, pragmatic financing mechanism to empower our contractors with direct access to capital, while protecting the state’s fiscal stability,” the government stated.
