The Edo State chapter of the All Progressives Congress (APC) has taken a firm stance against the recent approval of a N11.3 billion loan by the state’s house of assembly, intensifying political tensions in the region. The loan, intended for agricultural palliative, contractor financing, and bank guarantees, has sparked controversy and provoked strong criticisms from the opposition.
The approved loans, as disclosed by State Governor Godwin Obaseki, consist of N2.2 billion for agricultural palliatives with a repayment plan of N94.3 million over 24 months, and N9.1 billion for contractor financing and bank guarantees earmarked for housing unit construction and other infrastructural projects.
The APC, in response to the loan approval, has vehemently denounced the move, branding it as unnecessary and warning of potential financial turmoil for the state. Jarrett Tenebe, the State Acting Chairman of APC, voiced concerns over the state’s growing debt profile, asserting that the loan was a deliberate ploy to burden Edo with heavy financial obligations.
Tenebe accused the government of misleading the public by initially requesting N9 billion while allegedly intending to secure a larger sum of N17.5 billion. He further criticized the lack of transparency surrounding the loan’s purpose and the absence of corresponding projects in the state budget.
Moreover, Tenebe revealed that opposition lawmakers contested the loan’s approval, highlighting discrepancies in the amount being sought and ultimately refusing to be complicit in its endorsement. He went on to insinuate that the loan was ostensibly devised to siphon state funds for the upcoming gubernatorial election.
The political standoff over the loan approval underscores the deep-seated divisions within Edo’s political landscape, foreshadowing escalating tensions as the state grapples with the ramifications of the contentious financial decision.
