Edo not among ‘commercial borrowing states’ – DMO DG

The Director-General of the Debt Management Office (DMO), Mrs Patience Oniha, has lauded Governor Godwin Obaseki of Edo State for his prudent borrowing habit.

Oniha stated this on Wednesday in Benin, while speaking as a panel discussant at the ongoing 2019 Alaghodaro Summit in Benin City.

She noted that the “external borrowings that have caused uproars were concessional, long term and tied to specific projects or reforms initiative.”

Oniha who said Edo was not among the states that borrow commercially, added that what matter is what you do with the money you borrow and not borrowing in itself.

She stated that Governor Obaseki was within the threshold to borrow more money as it is not the state with the largest debt stock.

According to her, “We can call those cheap and productive loans. Edo is not one of those that have come to borrow commercially. They have access to local loans through the Central Bank of Nigeria facility which is less than 10 per cent annually. Edo State in terms of borrowing has been very focused.

“Edo has been prudent in managing debt. They are looking at increasing revenue and the figures they have achieved in revenue have been impressive.”

The DMO boss urged other state executives to emulate Governor Godwin Obaseki by being prudent in the management of their state resources.

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