Gov. Godwin Obaseki of Edo State.
The Edo State Government has come under criticism over the N11.3 billion loan recently approved for it by the State House of Assembly. The state chapter of the All Progressives Congress (APC) leveled the criticism in its reaction to the development on Friday, describing it as needless and one that would plunge the state into financial distress.
The Edo State House of Assembly had on Monday approved the sum of N11.3 billion loan for the state government.
The approved loans, said the State Governor, Godwin Obaseki, was for agricultural palliative and contractor, finance and bank guarantee loan, and were to be sourced from First Bank of Nigeria.
He gave the breakdown of the loan as N2.2 billion for agricultural palliatives, with a repayment plan of N94.3 million for a period of 24 months (two years).
He added that the N9.1billion was for contractor, finance and bank guarantee loan for the construction of some housing units in Asokoro, Abuja.
He also added that the approval was for the procurement of 50 CNG buses for the Edo City Transport Services (ECTS) and construction of roads, and drainages in the new Coral city in Benin among others.
The loans are to be sourced from First Bank of Nigeria
Reacting to the approval of the loan, the state chapter of the party at a press briefing on Friday, the State Acting Chairman of APC, Jarrett Tenebe, alleged that the state already had a debt profile of between N135 billion and $36.6 billion Dollars.
Tenebe opined that it was the design of the Governor Obaseki-led government to leave the state in ruins by requesting for a loan facility of N17.5 billion.
He also alleged that the state government deceived the people of the state for the request for N9 billion, whereas in actual fact, it was N17.5 billion.
Said Tenebe: “It is most disheartening that the Edo State Government is now requesting for a loan facility of N17.5 billion with no corollary of project attached to the said loan.
“Also, the facility is not attached as loan to be taken in the 2024 fiscal budget just recently passed by the House of Assembly. A cursory perusal of the entire budget does not reveal where the project for the facility is ever captured”.
He further alleged that the lawmakers were recalled from recess by the speaker of the House for the immediate approval of N9billion loan, but after the opposition lawmakers questioned the rationale for the loan, it, was, however, discovered that the facility was not even N9 billion but a figure wrapped in secrecy as much as N17.5 billion.
He alleged that opposition lawmakers, however, rejected and refused to be part of the approval.
Tenebe, however, alleged that the state government had designed the loan as conduit to take the state money to prosecute the forthcoming governorship election.
