Benue State’s public debt has surged to an alarming N122 billion, with the recent administration under Governor Hyacinth Alia allocating a significant N706 million for honorariums and sitting allowances. This has sparked concerns about the fiscal health of the state and its capacity to effectively manage its growing liabilities.
The report of the state’s escalating debt highlights the financial challenges faced by the Alia-led government, which has been under scrutiny for its financial management in the early stages of its tenure. The N122 billion debt load is a sharp increase from previous figures, raising alarm among stakeholders, including economists, citizens, and political analysts.
Governor Alia’s decision to allocate N706 million for honorariums and sitting allowances has drawn public criticism. The substantial spending on these allowances comes at a time when the state is grappling with budgetary constraints and dwindling revenue streams. Critics argue that such expenditures are excessive and could have been better directed toward addressing pressing infrastructural and social challenges, including education, healthcare, and poverty alleviation.
A significant portion of the state’s debt burden stems from previous borrowings, including loans used to finance infrastructure projects and government operations. However, critics argue that the current administration’s spending practices, coupled with the rising debt, could hinder the state’s ability to secure further financing for essential development projects.
Governor Alia, while defending his spending decisions, emphasized that the funds allocated for honorariums and allowances are essential for the smooth functioning of the state’s governance processes. He stated that such allocations are standard practice and are crucial for motivating the public officials who contribute to the functioning of the government. However, there is mounting pressure for greater transparency and fiscal responsibility in the management of state funds.
The Benue State House of Assembly, in response to the growing concerns, has called for a comprehensive review of the state’s debt profile and a closer examination of all major expenditures. Legislators have also urged the governor’s office to prioritize public welfare projects and explore ways to reduce the state’s reliance on borrowing.