Edo governor, Mr Godwin Obaseki has alleged that his predecessor, Mr Adams Oshiomhole put the state in serious indebtedness by “borrowing recklessly.”
Obaseki made the allegation on Sunday during the Edo Governorship debate organized by ChannelsTV.
“Let me make some points very clear. What happened is that my predecessor in office borrowed recklessly and the Federal government had to restructure all the debts that we have taken before I came into office,” Obaseki said while answering a question about the debt profile of the State.
“These included a whole series of bank borrowings, borrowing to pay salaries. So, the Federal government restructured outstanding obligations to Edo State, to the tune of almost N30 billion. That was what was responsible for adding to the debt stock, not borrowings from this administration,” he said.
According to him, Oshiomhole’s administration was owing contractors about N70 billion, which pegged the debt owed by the state at more than N120 billion.
Obaseki however gave his administration thumps up for servicing the debt and also providing the needed development to the people.
“It is not the quantum of debts, it is what you use the debts to procure. So, as long as you are able to invest your borrowings productively and ensure growth in the economy, then you have enough income to pay back those debts on a sustainable basis,” he said.
