…stakeholders express concern over state indebtedness
…Governor accused of using debts to recover funds paid to PDP tax-collectors
Edo State Governor, Mr. Godwin Obaseki, is concluding plans to obtain another 18 billion naira loan for unspecified reasons in addition to the 25 billion naira he clandestinely secured last month, according to bank and government sources who chose to remain anonymous to avoid backlash.
The sources presented documents that revealed the Governor’s proposal to a prominent Nigerian bank requesting an 18 billion naira loan hedged against Edo State’s 13% oil derivation fund. The proposal has reached the highest decision-making body of the bank and is likely to be disbursed soon, according to the bank sources who also detailed how the Governor’s alleged constant engagement and pressure on the bank’s management forced its hand on the issue.
Edo State’s indebtedness, already in a precarious state following Governor Obaseki’s ceaseless and unrestrained borrowings since his emergence in 2016, will bump up significantly with the latest 18 billion naira loan deal despite the lack of a clear repayment plan or strategy.
Government sources claim that the fresh 18 billion naira loan is already causing a row in the state’s civil service, especially in the finance and treasury department, as growing numbers of state workers have expressed their discontent with the Governor’s relentless borrowing without commensurate impact on the state’s development.
Specifically, they questioned the need for another 18 billion naira loan less than a month after the Governor obtained an unannounced and unaccounted 25 billion naira loan from the same bank without legislative approval.
Indeed, multiple checks have revealed that Governor Godwin Obaseki has made it a trend to obtain secret loan deals without securing legislative approval as mandated by the constitution, an anomalous and potentially criminal situation abetted by Mr. Kabiru Adjoto and Mr. Frank Okiye, two former Speakers of Edo Assembly who served primarily at the behest of the Governor and actively encouraged his disdain of due constitutional process and attack on elected legislators for years.
One of the sticking points that estranged the Governor from his former party, the APC, in the buildup to the 2020 election was his assault of members elected on the platform of the party to the state legislature over their refusal to serve as his puppets or consent to his totalitarian style of leadership in a democratic setting.
Days ago, primary school teachers in Edo State embarked on an indefinite strike over unpaid salaries and allowances, increasing calls for Governor Godwin Obaseki to account for the 25 billion naira loan he obtained in December.
Speculations are rife in the state’s political circles that the secret loans are means for the Governor to recoup his heavy financial losses in the 2020 election, notably the billions he allegedly paid to the PDP ‘tax-collectors’ in exchange for the party’s ticket and support.
It remains yet unclear when the new 18 billion naira loan will be disbursed to the Governor but different accounts from bank and government sources suggest that the payment is imminent.