By Eshioromeh Sebastian
The Edo State Government has dismissed recent media reports alleging a sharp rise in its domestic debt.
This comes as the government published a detailed breakdown of its debt profile from the fourth quarter of 2024 to the first quarter of 2026 to counter what it describes as a misrepresentation of the state’s fiscal position.
In a public statement issued on Wednesday and signed by the Honourable Commissioner of Finance, Engr. Emmanuel Okoebor, the government presented a quarter-by-quarter composition of its domestic debt, separating structured loans from unstructured obligations such as pension and gratuity arrears and contractor claims.
According to the data released by the government, Edo State’s structured debt, comprising loans, bonds, and similar instruments, declined consistently over the six-quarter period, falling from N36.03 billion in Q4 2024 to N22.60 billion in Q1 2026. This represents a reduction of approximately 37 per cent.
The government stated that the decline demonstrates that the administration of Senator Monday Okpebholo has not procured new loans but has instead committed resources to repaying inherited structured debt.
“Edo State Government structured loans, a major component of domestic debt, declined consistently from N36,028,894,900.62 in Q4 2024 to N22,604,588,368.36 in Q1 2026. This indicates that the Edo State Government under the leadership of Senator Monday Okpebholo did not procure new loans but has dedicatedly repaid inherited structured loans over the period under review”, the statement read.
The government also reported progress in clearing inherited pension and gratuity obligations, which it classified as unstructured debt. These arrears fell from N57.14 billion in Q4 2024 to N48.42 billion in Q1 2026, a reduction of about 15 per cent. The statement noted that the state inherited a huge stock of pension and gratuity arrears and has been steadily reducing the burden.
The government acknowledged that total domestic debt rose to N172.37 billion in Q1 2026, up from N91.18 billion in Q4 2025, but attributed the increase to contractor arrears rather than new borrowing. It explained that N19.83 billion in contractual obligations was defrayed by Q3 2025.
However, new economic undertakings, including massive road infrastructure, flyover bridges, and other social costs, generated fresh obligations by the end of 2025 and into Q1 2026, pushing contractor arrears to N101.35 billion.
The government classified these as certified jobs and value delivered, framing the increase as a reflection of ongoing capital projects rather than fiscal indiscipline.
The statement also rejected any suggestion that the appointment of Special Advisers contributed to the state’s domestic debt, clarifying that the debt is not wage-related.
“The appointment of Special Advisers has nothing whatsoever to do with the domestic debt, as the said debt is not wage-related,” the Commissioner stated.
He further noted that debt ranking by the Debt Management Office is dynamic and subject to change, contrary to the insinuation in the publication referenced.
The Edo State Government insists that what really matters is the direction of its structured borrowing, which is falling, and the shrinking pension arrears it inherited. It explained that the bigger total debt figure reflects money owed for completed capital projects, not fresh loans.
“The facts, figures and composition of the State’s domestic debt profile from Q4 2024 to Q1 2026” were presented, the government said, “for the avoidance of doubt and for record purposes.”
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