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New financial figures released by the Edo State Ministry of Finance show a sharp decline in the state’s structured domestic debt even as public infrastructure spending continues to rise, a combination officials say pushes back against recent allegations that Governor Monday Okpebholo’s administration has been borrowing without restraint.
According to the Ministry’s data, Edo’s structured domestic debt, made up of formal loans and bonds, fell by roughly 37 per cent, dropping from ₦36.03 billion in the fourth quarter of 2024 to ₦22.60 billion by the first quarter of 2026.
Over the same period, inherited pension and gratuity arrears were reduced from ₦57.14 billion to ₦48.42 billion, a decline officials point to as evidence of steady progress on long standing liabilities left by previous administrations.
The Ministry’s balance sheet also clarifies the source of recent increases in the state’s aggregate financial figures. Rather than new or indiscriminate borrowing, officials say the uptick reflects certified contractor obligations tied to active capital projects, including flyovers, road construction, and other public works currently under way across the state.
Financial analysts attribute the debt reduction to stronger internal revenue generation and tighter expenditure controls put in place early in the administration’s tenure.
By closing systemic leakages and restructuring existing obligations, the state government says it has lowered its debt service burden, freeing up capital for development without expanding its long term debt profile.
The Ministry of Finance further noted that the administration’s debt management strategy prioritises domestic debt sustainability.
Officials say strict compliance with fiscal responsibility guidelines has allowed Edo State to maintain a healthy debt to revenue ratio, positioning it among the more fiscally disciplined states in the region.
Beyond the numbers, Okpebholo’s infrastructure drive has focused on high impact urban and rural projects rather than ventures officials describe as unviable.
Ongoing construction of major flyovers and inter city roads is already easing traffic congestion, lowering transportation costs, and improving the movement of agricultural goods along key commercial corridors in the state.
Officials also point to the formal integration of contractor obligations into the state’s public accounting system as evidence of a more transparent approach to public finance.
Recognising certified payables, they say, keeps contractors on site and projects moving on schedule, avoiding the abandoned project pattern that affected earlier administrations.
The combination of falling formal debt and accelerated infrastructure delivery has drawn praise from economic analysts and private sector stakeholders, who note that addressing inherited pension liabilities alongside active development spending reflects a balanced approach to both social welfare and physical development.
Looking ahead, the Okpebholo administration has reaffirmed its commitment to fiscal transparency and accountability.
State officials say future capital spending will remain tied to verifiable revenue growth and project completion, with the goal of keeping Edo State on a path towards sustainable economic growth without shifting debt burdens onto future generations.
