The Edo State Government has clarified that the recently approved N100 billion facility by the Edo State House of Assembly is not a direct loan to the state, but a credit guarantee aimed at empowering contractors executing critical infrastructure projects across the state.
In a statement issued on Tuesday, the government stressed that it is not borrowing N100 billion, but rather acting as a guarantor to contractors who will secure funding from First Bank Plc to finance key projects.
“This clarification is crucial to correct any misconception arising from reports suggesting that the Governor had directly obtained an approval to borrow the aforementioned sum,” the statement read.
The contractor financing scheme, which has a tenure of 40 months, allows selected contractors to access project-specific funds from the bank, with the Edo State Government guaranteeing repayment to ensure timely project delivery.
Governor Lucky Aiyedatiwa Okpebholo’s administration described the move as a “fiscally responsible model” designed to fast-track infrastructural development without overburdening the state with direct debt.
Projects earmarked under the scheme include:
- Construction of a flyover bridge at Adesuwa Road
- Evbhukhu-Sapele Road with underground drainage in Oredo LGA
- Eguaolor-Iguomo-Uvbenisi-Oza Road with a spur to Ohe community in Uhunwonde LGA
- Okpagha-Amufi Road with links to AG Bonze Street and Michael Agbedon Street in Uhunwonde/Ikpoba Okha LGA
- Interconnecting roads in Ogbeghe and Old Sapele Road, Benin City
- Uhie Road off Sapele Road, Benin City
- Internal roads in Ugieda village, South Ibie, Etsako West LGA
- A single carriageway of the Ekpoma-Uromi-Ubiaja road in Esan
The government reaffirmed its commitment to meeting all obligations under the guarantee agreement and to ensuring the seamless execution of the listed infrastructure projects.
Governor Okpebholo’s administration stated that this financing mechanism reflects its strategic intent to improve the state’s infrastructure while maintaining financial prudence.
