Alia takes N133b loans in 2 months despite huge federal allocations
..…Governor Mortgaging Benue’s Future
We read with shock and disbelief that despite the multi billions coming into Benue State every month as federal allocations which have never been seen before in the history of the state, the government of Hyacinth Alia has gone ahead to take a fresh loan of N93 billion for what the governor claims to be “digitalization of governance”. This amount is the second in just two months that the Alia administration has taken a multi billion loan.
Last month, Governor Alia announced that his government had secured a €25 million (N40.4 billion) loan from the European Investment Bank, for “road construction”. That brings the total loans taken by the current government of Benue State in only two months to over N133 billion.
Between May 2023 and July 2024, Benue State has received over N200 billion from the federation’s account for state and local governments. This is in addition to several interventions by the Federal Government in the form of palliatives and other monetary support initiatives of the President Bola Tinubu administration.
That puts the total figure that the Alia administration has received (including the loans) in the region of N350 billion within just a year.
But what is shocking is that there is nothing commensurate on ground to justify the significantly improved financial fortunes of the state. Instead, Governor Alia and his cabinet are putting a heavier financial burden on the state with skyrocketing loans.
In the last 14 months, the Alia government has received an average of N24 billion each month for the state and local governments from the federation’s account. We wonder what the governor has done with such a volume of money. Not even a culvert has been constructed in any of the 23 local government areas of the state. In Makurdi, he is constructing 15 very short streets at the cost of N9 billion with none of the streets measuring up to a kilometer.
The Governor does not give any breakdown of how much he is receiving and what he is doing with the funds. As a group, we have challenged him several times to come clean on the issue of appropriation of state resources, but he is yet to take up the challenge.
While infrastructural development is crucial for the progress of any state, the decision to take such a huge debt of N93 million in addition to the N40.4 billion from European Investment Bank raises serious questions about the government of Alia’s financial prudence and long-term sustainability.
It is disheartening to witness a decision that could potentially plunge Benue State into a cycle of debt and jeopardize its future financial stability. Taking loans for infrastructural projects should be approached with caution, especially when the repayment of such loans is not backed by a clear and viable plan. Governor Alia and his team are yet to tell Benue people the repayment plan for the bogus loans.
Governments should prioritize investments that have the potential to generate revenue and spur economic growth, thereby enabling them to repay debts without burdening future generations. Governor Alia is the luckiest governor in the history of the state. He has come at a time oil subsidy has been removed and more money is made available to the states. No other Benue governor has ever seen the volume of money that Alia is receiving. For him to therefore go for loans is an insult to the sensibilities of the people.
Transparency in financial matters is essential for fostering trust between the government and its citizens. Governor Alia must prioritize accountability and openness in managing the finances of Benue State. The people have the right to know how public funds are being utilized and whether decisions, such as taking on substantial loans, are in the best interest of the state and its people.
We condemn the taking of these loans and call on those who love Benue State to rise up and demand accountability from Governor Hyacinth Alia! He should tell the public what he is doing with the monumental resources that his administration has received. The Governor should also explain in detail what the N133 billion loans are meant for and how the funds have so far been spent.
Gov Alia has made falsehood a statecraft – Aloysius Gbakaan
Benue State is our collective project to protect, and we won’t allow any administration to plunge the state into debts that it will never recover from!
Amos Uchiv
President, Defenders of Democracy, DoD
