The Edo State Government has explained that it is not borrowing ₦100 billion, despite recent approval from the State House of Assembly.
Instead, the administration of Governor Monday Okpebholo is acting as a guarantor for contractors working on key infrastructure projects.
This move allows selected contractors to access funds from First Bank Plc to carry out their work, with the state government standing in to back the repayment process.
The funds will be disbursed directly by the bank to the contractors based on their specific project needs and will run over a 40-month period.
A statement from the Governor’s office said the government’s role is to ensure that payments to the bank are made when due.
This support system aims to make sure that the projects are completed on time without financial delays.
Some of the projects under this arrangement include the construction of a flyover at Adesuwa Road, a new road with drainage at Evbhukhu-Sapele Road in Oredo, and various road works in Uhunwonde, Ikpoba Okha, Benin City, Etsako West, and Esan.
These projects are expected to boost road infrastructure across the state.
The government said this method of project funding is designed to speed up development without directly increasing the state’s debt, and to ensure that contractors have the means to complete their work properly.
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