₦81bn DMO Figure: Edo Govt Says “We Didn’t Borrow ₦81bn Cash”

…Explains Contractor Financing, ₦100bn Guarantee Arrangement

The Edo State Government has dismissed reports and public interpretations suggesting that it borrowed ₦81 billion in cash in 2026, describing the figure contained in the latest Debt Management Office (DMO) debt statistics as a guaranteed contractor financing obligation rather than a direct government loan.

The government, in a clarification issued amid growing public concerns over the reported increase in the state’s domestic debt, explained that the figure is connected to a ₦100 billion Contractor Financing Guarantee Fund approved by the Edo State House of Assembly in June 2025. The initiative, according to the government, was introduced to ensure that contractors handling critical government projects have access to financing and are able to execute projects without delays caused by funding challenges.

Under the arrangement, the government said, approved and vetted contractors obtain financing directly from First Bank of Nigeria Plc, while the Edo State Government provides a guarantee for the facility. This means the funds are not disbursed to the state government as conventional budgetary borrowing or general-purpose cash that could be deployed at the discretion of the government.

The government further explained that amounts drawn by contractors under the arrangement are reflected as guaranteed domestic obligations of the state until they are fully liquidated. The contractors are expected to repay the facilities from payments due to them by the Edo State Government after their projects have been completed and certified. As a result, the appearance of the obligations in the DMO’s domestic debt figures does not mean that ₦81 billion was paid into the state’s accounts.

“For the avoidance of doubt, Edo State did not secure a direct public loan of ₦81 billion in 2026,” the government stated, stressing that what exists is a 40-month contractor financing arrangement backed by a ₦100 billion credit guarantee approved by the State Assembly and facilitated through First Bank.

According to the government, the financing structure was designed to accelerate the delivery of critical infrastructure across Edo State by enabling contractors to mobilise equipment, materials and personnel while awaiting payments tied to certified work. It said the arrangement was particularly intended to prevent funding gaps from slowing down projects and to ensure that approved infrastructure works are delivered within specified timelines.

The clarification, signed by Hon. Haruna Braimoh, Special Adviser on Public Affairs and Media to the Edo State Governor, urged the public and the media to distinguish between direct government borrowing and contingent or guaranteed obligations arising from contractor financing. The government reaffirmed its commitment to transparency, prudent fiscal management and responsible utilisation of public resources, adding that the financing mechanism forms part of its broader efforts to deliver infrastructure and other development projects under the S.H.I.N.E. Agenda.