By Jethro Ibileke
The Edo State Government has denied taking a ₦100 billion loan facility from the First Bank to finance critical projects in the State.
Recall that the State House of Assembly had on Tuesday during plenary, approved the said loan request by the government.
The approval followed a letter of request from the Governor dated June 23, 2025, and addressed to the Speaker of the House, Blessing Agbebaku.
In the letter, the Governor noted that the decision to obtain the loan facility was taken at the State Executive Council’s meeting held on June 17, 2025.
The letter was 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”.
The letter, signed by the Secretary to the State Government, Umar Musa Ikhilor, added that the contractor finance loan facility would be sourced from the First Bank of Nigeria Plc.
“May I respectfully inform Mr Speaker that the Edo State Government desires to reposition Edo State through massive infrastructural upgrade and urban renewal to facilitate the realisation of the five-point agenda anchored on the SHINE Development Framework.
“May I also inform Mr Speaker that Edo State intends to obtain a contractor finance facility of one hundred billion naira from First Bank of Nigeria Plc, which will be disbursed to nominated contractors for the development of various infrastructural projects in Edo State.
“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 Governor further explained that the loan would be channelled for the development of various infrastructural projects across the State, geared towards the realisation of his government’s five-point agenda that is anchored on the SHINE Development framework.
Also, the Speaker of the House, Blessing Agbebaku, at plenary, said he is 100 per cent in support of the loan.
“I also support this loan facility because I also have projects in the budget that the Governor has promised to do.
“If my people will benefit from this facility, why wouldn’t I support it. I support it 100 per cent,” he added.
But, Mr Fred, the Chief Press Secretary to Governor Okpebholo, in a statement on Wednesday, denied that the government is taking any loan, but only standing as “a guarantor for contractors handling critical infrastructural projects across the state”.
His statement reads:
“We wish to state unequivocally that while the Edo State House of Assembly has indeed granted its approval for a facility amounting to N100 billion, the Edo State Government is not obtaining a loan of N100 billion.
“Rather, the Edo State Government is strategically positioned as a guarantor for contractors handling critical infrastructural projects across the State. The guarantee will then secure the necessary funding for project execution from First Bank Plc.
“This clarification is crucial to correct any misconception arising from reports suggesting that the Governor had directly obtained approval to borrow the aforementioned sum.
“The arrangement is specifically a contractor loan facility designed to empower nominated contractors with direct access to capital for their projects, with the State’s guarantee underpinning the financial transaction.
“This innovative approach is a deliberate move by Governor Okpebholo’s administration to accelerate the development of key infrastructure across Edo State. The funds, which will be disbursed by First Bank Plc directly to the contractors based on their project demands, have a tenure of 40 months.
“The Edo State Government is fully committed to fulfilling its guarantee obligations by ensuring timely payments to the bank as agreed, thereby guaranteeing the seamless and expeditious execution of these vital projects.
“Among the priority projects earmarked for execution under this funding mechanism are: Construction of a flyover bridge at Adesuwa Road; Construction of Evbhukhu-Sapele Road with surface and underground drainage system in Oredo LGA; Construction of Eguaolor-Iguomo-Uvbenisi-Oza Road with Spur to Ohe community in Uhunwonde LGA; Construction of Okpagha-Amufi Road with Spur to AG Bonze Street, Daddy J Road, and Michael Agbedon Street in Uhunwonde/Ikpoba Okha LGA; Construction of inter roads in Ogbeghe and Old Sapele Road, including associated hydrology structure in Benin City; Construction of Uhie Road off Sapele Road, Benin City; Construction of internal roads in Ugieda village, South Ibie, Etsako West LGA; Construction of a single carriage way of Ekpoma-Uromi-Ubiaja road in Esan, among others.
“This pragmatic and fiscally responsible model underscores Governor Okpebholo’s strong commitment to delivering on his mandate for infrastructural development, ensuring that contractors are well-resourced to complete projects efficiently, and ultimately improving the lives of Edo citizens.
“The Edo State House of Assembly on Tuesday gave nod to the State Governor, Monday Okpebholo, to access a contractor loan facility of N100 billion for infrastructural development of the State.”