The Edo State Government has denied claims that it secured a ₦100 billion loan from First Bank of Nigeria, clarifying that the approved facility is a contractor finance arrangement aimed at accelerating key infrastructural projects across the state, with the government acting only as guarantor.
This clarification follows the approval granted by the Edo State House of Assembly during its plenary session on Tuesday. The request for approval was made by Governor Monday Okpebholo in a letter dated June 23, 2025, addressed to the Speaker of the House, Rt. Hon. Blessing Agbebaku. The governor explained that the decision to pursue the facility was reached during the State Executive Council meeting held on June 17, 2025.
The letter, signed by the Secretary to the State Government, Umar Musa Ikhilor, 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.” It stated that the funds would be disbursed directly to contractors handling critical infrastructure works under the SHINE Development Framework of the Okpebholo administration.
During the plenary, Speaker Agbebaku expressed support for the initiative, stating that his constituents stand to benefit from several of the projects tied to the facility. “If my people will benefit from this facility, why wouldn’t I support it? I support it 100 percent,” he said.
However, following widespread speculation that the government had obtained a fresh loan, the Chief Press Secretary to the Governor, Mr. Fred Latimore, issued an official statement on Wednesday to set the record straight. He emphasized that the facility should not be mistaken for a conventional government loan.
“We wish to state unequivocally that while the Edo State House of Assembly has indeed granted its approval for a facility amounting to ₦100 billion, the Edo State Government is not obtaining a loan of ₦100 billion,” the statement read. “Rather, the Edo State Government is strategically positioned as a guarantor for contractors handling critical infrastructural projects across the State.”
Latimore explained that under the arrangement, contractors will access funds directly from First Bank based on project requirements, while the government guarantees repayment over a 40-month period. He described the approach as an innovative and fiscally responsible model that enables rapid infrastructure delivery without accumulating direct public debt.
He added that Governor Okpebholo remains fully committed to fulfilling all guarantee obligations to ensure smooth execution of the projects, which include road construction, drainage systems, flyovers, and internal roads across various local government areas including Benin City, Oredo, Uhunmwonde, Ikpoba-Okha, Etsako West, and Esan.
Latimore concluded by reaffirming the government’s dedication to transparency and financial discipline, noting that the contractor financing model reflects the administration’s resolve to deliver tangible development without compromising the state’s financial health.
