By Abdul-Kadir Abdullah
The Edo State Government on Wednesday June 25, 2025 clarified the true nature of the recently approved N100 billion facility, emphasizing that it is a strategic guarantee for contractors, not a direct loan to the state.
This clarification comes amidst reports suggesting Governor Monday Okpebholo had directly obtained approval to borrow the substantial sum.
In a statement signed by Fred Itua, the Chief Press Secretary to Governor Okpebholo, the government explained that the Edo State House of Assembly has indeed granted its approval for a N100 billion facility.
However, this approval positions the Edo State Government as a guarantor for contractors undertaking critical infrastructural projects across the state.
This guarantee will enable these contractors to secure necessary funding for project execution directly from First Bank Plc.
The statement read: "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 added that the arrangement is specifically termed 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 has committed to fulfilling its guarantee obligations by ensuring timely payments to the bank as agreed, aiming to ensure 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 and Construction of a single carriage way of Ekpoma-Uromi-Ubiaja road in Esan, among others.
The Chief Press Secretary concluded by stating that 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."
