Edo State has a debt profile of $314 Million (N450 Billion in naira) By 2016, when Governor Obaseki came into power, the debt had reached 100 billion naira.
Introduction
Edo State in Nigeria is the largest by land area. It has taken many loans, totaling over 400 billion naira. In 2023, its external debt reached $314.45 million. Every year, the state takes more loans, causing concern.
The State House of Assembly has told Governor Godwin Obaseki to stop taking more loans. They are worried because the state already has too much debt.
The loans have not brought enough benefits to the people, and the state suffers because of this debt.
Lawmakers believe that more borrowing could harm the state’s finances and future. They suggest finding other ways to raise money instead of taking more loans.
It is important for the state to use the borrowed money wisely, focusing on projects that will help the economy grow.
The state needs to manage its debt better to avoid more problems. By using the loans effectively and finding other sources of income, they can improve its financial health.
This will help the state grow without adding more debt that future generations will have to pay.
The State has many natural resources and is very good at farming. Despite this, the state still needs to take loans to support itself.
They gets these loans from the federal government, mortgage banks, and other financial banks in Nigeria.
Right now, Edo has one of the highest amounts of loans in Nigeria, ranking third in the country.
This heavy borrowing is a big worry. Even though the state has rich resources and strong farming, it depends on loans to pay for its needs and projects.
The loans come from different places. The federal government gives some loans, while mortgage banks and other banks in Nigeria also lend money to the state.
These loans are meant to help the state grow and improve things like roads and schools, but they also create a lot of debt.
They needs to find a better way to use its resources and manage its money. The state should make sure that the borrowed money is used for important projects that will help the economy grow.
By doing this, Edo can reduce its need for more loans in the future and become more financially stable.
Loan history
Edo in Nigeria has struggled because of bad leadership. Since 2010, the state has been taking many loans.
The problem started with former Governor Adams Oshiomhole, who took the most loans in the state’s history. This huge borrowing hurt the economy.
The current Governor, Godwin Obaseki, also uses loans to run the state. He says these loans have helped improve Edo State, but many people worry about the growing debt. Despite having rich resources and good farming, the state relies too much on loans.
The constant borrowing shows that the state needs better financial management. The big debt not only affects the economy now but also makes things harder for future generations.
The leaders need to find better ways to use their resources and reduce the need for loans.
The history of loans in Edo State shows the need for responsible leadership.
The state must make sure that any money borrowed is used wisely for projects that really help the economy.
By improving how they manage money and making better decisions, they can have a more stable and successful future.
Loan records
The state has a big loan of 450 billion naira. In the last year alone, Governor Godwin Obaseki borrowed over 100 billion naira.
The state’s loan history shows a lot of borrowing over the years.
Former Governor Adams Oshiomhole took a loan of 39 billion naira in 2011, the highest ever at that time.
By 2016, when Governor Obaseki came into power, the debt had reached 100 billion naira. Since then, the borrowing has increased quickly.
Governor Obaseki says these loans help develop Edo State, but many people worry about the growing debt. Even though the state has rich resources and good farming, it depends too much on loans.
This borrowing pattern shows that Edo State needs better money management. The state should use the borrowed money carefully for projects that really help the economy.
By making smarter choices and managing money better, they can reduce its need for loans.
The current debt problem shows that the state needs good leadership and careful planning.
They should focus on using its resources
well and finding other ways to raise money, so it can become more stable and successful without relying on loans.
Conclusion
Edo State has a debt profile of $314 Million (N450 Billion in naira) By 2016, when Governor Obaseki came into power, the debt had reached 100 billion naira.