Edo APC warns Gov Obaseki: Stop borrowing, state headed for financial crisis

The Edo State chapter of All Progressives Congress (APC) has issued a strong warning to Governor Godwin Obaseki, urging him to halt his borrowing spree.

The party cited concerns that the state’s already significant debt burden could spiral further out of control.

Jarrett Tenebe, acting chairman of Edo APC, who addressed newsmen on Friday, expressed deep reservations about the recently approved N9 billion loan for the governor.

He argued that this additional debt, on top of the existing N135 billion domestic debt and $35.6 billion foreign debt, puts the state on a perilous financial path.

He said, “The governor is unyielding and unstoppable in his characteristic design to leave Edo State in ruin by asking for a facility of N17.5bn a few days ago.

“It is important to state that it is now in public and political space that the budget of Edo State was passed a few weeks ago before the Edo State House of Assembly proceeded on leave without the commencement of the execution of the budget by the executive.

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“It is most disheartening that the Edo State Government now is requesting for a facility of N17.5bn with no corollary of project attached there to the said facility and also that the facility is not contained as loan to be taken in the 2024 fiscal budget just recently passed. A cursory perusal of the entire budget does not reveal where the project for the facility is ever captured.

“While it is important to state that the citizens of Edo State has been taken through difficult and hard times by the Obaseki-led administration, it is our request and most profoundly too that the Obaseki administration stops these borrowing which its proceeds found their way into his pocket and that of his co-travelers, as Edo State has suffered enough decay in infrastructural and other developmental sects.

“Edo State is yearning for a bold change hence we are using this medium to call on the Edo People to completely reject the PDP and their shenanigans and vote massively for the APC that offers the best alternative to the present administration,” he added.

The APC’s criticism adds fuel to existing anxieties about Edo State’s finances. Critics have long questioned the transparency and effectiveness of the government’s spending, particularly regarding borrowed funds. Additionally, concerns linger about the impact of debt on essential services and infrastructure development.

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