The Edo State Government has allayed fears that the state’s foreign debt profile was worrisome, arguing that the credits which the state enjoys were accessed as a result of the state’s transparent governance and prudent financial management.
The Debt Management Office (DMO) recently released Nigeria’s foreign debt profile, in which Lagos, Edo, Kaduna and Cross River states, in that order, topped the list of sub-nationals with high external debts.
In a statement made by the Special Adviser to the Edo State Governor on Media and Communication Strategy, Mr. Crusoe Osagie, said the state government prioritizes sustainable development and judicious use of state funds, which is what, has enabled it to promptly access the low-interest credit from multilateral organizations.
He argued that it was erroneous to assume that foreign credits are bad, noting that they help to fast-track development at the lowest cost of funds possible.
According to him, foreign credits usually come with single, lower digit interest rates, ranging from one to five per cent. They carry many years of moratorium, that is, a period within the tenure of the loan when the borrower is not required to make repayment. This gives the borrower more time to bring development to the people and therefore increase the capacity to repay the loan.
He stressed that what is important is that the Governor Obaseki-led Edo State Government is putting every penny sourced from the Federation Account, Internally Generated Revenue (IGR) and international development financing to judicious use to improve the lives of the people.