Home » Benue Assembly Approves N100bn Loan Amid PDP Backlash

Benue Assembly Approves N100bn Loan Amid PDP Backlash

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Benue State House of Assembly on Friday approved Governor Hyacinth Alia’s request to obtain a N100 billion term loan, sparking sharp criticism from the opposition Peoples Democratic Party (PDP).

The approval followed the reading of a letter from the Secretary to the State Government by Speaker Alfred Emberga, outlining plans to channel the funds into key infrastructure projects across the state.

According to the letter, the loan will finance the renovation and equipping of 23 general hospitals, the construction of science-specialist schools, completion of ongoing road, bridge, and electrification projects, as well as the establishment of skills acquisition centres and smart schools. It will also cover upgrades to tertiary institutions, including the Benue State University of Agriculture, Ihugh, and additional works across major corridors in Makurdi, Gboko, and Otukpo.

The N100 billion borrowing is structured as a 48-month term loan, with repayment expected from federal promissory notes and allocations through FAAC and internally generated revenue (IGR).

However, the PDP, through its State Publicity Secretary, Tim Nyor, condemned the move as “reckless and insensitive,” arguing that the state’s struggling economy cannot sustain such a huge debt.

The party urged the assembly to reverse its decision and act as a true check on the executive rather than a “rubber stamp.”

The PDP also raised concerns over the timing and transparency of the loan process, questioning the accountability measures in place to prevent misuse.

In response, a spokesman for Governor Alia defended the administration’s fiscal stance, insisting that no new loans have been taken since May 2023.

He clarified that the N4.53 billion reported as external loan servicing between June 2023 and June 2024 covered debts inherited from previous administrations.

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