Edo State opposition leaders attacked Governor Monday Okpebholo over his plan to borrow 100 billion naira from First Bank of Nigeria. The Peoples Democratic Party said the borrowing request was reckless and dangerous for the state. State assembly members approved the governor's loan application on Tuesday for infrastructure projects. PDP officials called the decision unacceptable because it lacks proper oversight. The opposition party released a statement Wednesday criticizing the massive debt proposal.
Dr Tony Aziegbemi leads the Edo PDP committee that condemned the borrowing plan. He said previous governors took 34 years to create 112 billion naira in state debt. Okpebholo wants to add 100 billion naira in less than eight months as governor. The new loan would double the state's total debt since Edo was created in 1991. Aziegbemi warned this borrowing threatens the state's financial future.
Opposition leaders complained about the lack of transparency around the loan agreement. No public details exist about which projects will receive funding or which contractors will do the work. The loan terms remain secret from citizens who must repay the money. Interest rates from commercial banks reach 30 percent compared to lower rates from development institutions. The state would pay 35 billion naira annually just for interest on this loan.
The PDP suspects the timing connects to an upcoming Supreme Court case about the disputed 2024 election. Aziegbemi said the state inherited 50 billion naira and claims monthly revenue of 10 billion naira. He questioned why a wealthy state needs such massive borrowing from private banks. The opposition plans to use freedom of information laws to obtain loan details.
Dr Tony Aziegbemi leads the Edo PDP committee that condemned the borrowing plan. He said previous governors took 34 years to create 112 billion naira in state debt. Okpebholo wants to add 100 billion naira in less than eight months as governor. The new loan would double the state's total debt since Edo was created in 1991. Aziegbemi warned this borrowing threatens the state's financial future.
Opposition leaders complained about the lack of transparency around the loan agreement. No public details exist about which projects will receive funding or which contractors will do the work. The loan terms remain secret from citizens who must repay the money. Interest rates from commercial banks reach 30 percent compared to lower rates from development institutions. The state would pay 35 billion naira annually just for interest on this loan.
The PDP suspects the timing connects to an upcoming Supreme Court case about the disputed 2024 election. Aziegbemi said the state inherited 50 billion naira and claims monthly revenue of 10 billion naira. He questioned why a wealthy state needs such massive borrowing from private banks. The opposition plans to use freedom of information laws to obtain loan details.
