Alia’s Govt, PDP clash over controversial ₦100bn loan approval

…Your attacks on me are a cover-up, Ortom tells Alia

The Benue State Government and the opposition People’s Democratic Party (PDP) are locked in a fierce political standoff following the State House of Assembly’s approval of a ₦100 billion loan meant for infrastructure development across the State.

The PDP, in a strongly-worded statement issued by Tim Nyor, its Publicity Secretary, condemned the loan as “reckless” and “fiscally irresponsible,” accusing Governor Hyacinth Alia’s Administration of plunging the State into avoidable debt without adequate justification.

According to the PDP, the loan approval process lacks transparency, while also questioning the necessity of such borrowing in light of increased federal allocations since the removal of fuel subsidies. “What, precisely, is the purpose of this loan?” Nyor queried, calling on the legislature to reject what he described as “another cycle of debt.

Responding swiftly, the Benue State Government defended the move, describing the PDP’s claims as hypocritical and misleading. Tersoo Kula, Chief Press Secretary to Governor, asserted that the loan is a strategic investment tied to capital projects that would deliver measurable value to the people.

Kula detailed the projects to be financed, including the renovation of general hospitals, construction of science and smart schools, completion of critical road infrastructure, and the development of the Benue State University of Agriculture, Science, and Technology at Ihugh.

He further stated that the Alia Administration had refrained from borrowing since taking office due to the ₦359 billion debt burden inherited from former Governor Samuel Ortom, a PDP member. “This is the first loan by the Alia government, and it is development-driven, not political,” Kula emphasised.

Highlighting what he described as financial recklessness under previous Administrations, Kula said the PDP should be the last to speak on fiscal discipline, citing outstanding salary and pension arrears left unpaid by the Ortom Government despite receiving multiple federal bailouts.

The State Government also maintained that the loan approval followed due legislative process and enjoys the full backing of the Assembly, which had reviewed and endorsed the developmental goals outlined by Governor Alia.

While the PDP accused the Assembly of acting as a rubber stamp for the executive, the Government insists the legislative support reflects growing confidence in Alia’s leadership and prudent financial management.

As tensions rise, both parties appear unwilling to shift ground, with the PDP vowing to “expose every act of financial impropriety,” and the Alia government pledging to continue its development agenda without yielding to “political blackmail and emotional outbursts.”

Meanwhile, Samuel Ortom, the immediate past governor of Benue State has accused his successor, Governor Hyacinth Alia, of using personal attacks against him as a diversionary tactic to cover up alleged financial mismanagement and controversies surrounding a recently approved ₦100 billion loan.

In a statement issued on Saturday by Terver Akase, his media Adviser, Ortom described the Alia administration’s comments about him as “baseless and diversionary,” claiming they were meant to distract the public from growing scrutiny over the government’s handling of state funds.

Akase alleged that instead of addressing legitimate concerns raised by the Peoples Democratic Party (PDP) about the loan and the state’s financial status, the incumbent governor has “resorted to attacking Ortom personally.”

“Each time Governor Alia is confronted with questions bordering on transparency in governance or the welfare of Benue people, his reflex action is to attack Chief Ortom instead of providing facts and figures,” Akase said.

He accused the governor of exhibiting “growing intolerance for accountability” and “an obsession with dragging Ortom’s name into every issue, no matter how unrelated.”

The statement further questioned how the Alia-led Government had managed the huge revenues accruing to the state since May 2023, citing alleged cases of contract awards without due process or budgetary provisions.

He accused the Alia administration of maintaining “secrecy around state finances,” despite increased federal allocations following the removal of fuel subsidy.

Akase also dismissed the Government’s claims on the State’s debt profile, describing them as contradictory.

“The Government has claimed to spend ₦214.6 billion on debt servicing in 29 months—₦52.5 billion higher than the ₦162.1 billion total debt it declared,” he said, questioning the figures’ credibility.

The statement added that as of May 2023, the Ortom’s Administration had secured pending federal approvals, including a ₦41 billion bailout balance, a ₦20 billion CBN facility, and expected refunds from subsidy and SURE-P deductions. Akase challenged the current government to clarify whether those funds had been received and how they were utilised.

He further accused the administration of mismanaging Local Government funds, alleging that despite record allocations, “not one of the 23 councils has executed a single development project,” unlike under Ortom, when “local governments actively competed in delivering projects.”

Akase maintained that Ortom left behind “verifiable records” of his administration’s finances and projects, urging Governor Alia to publish the official handover documents if he believed otherwise.

“Benue people elected him to serve, not to campaign against those who came before him,” Akase said.

“Chief Ortom has moved on with dignity as a statesman and expects Governor Alia to do better, especially with the resources now available to the State.”