The Benue State Government is facing mounting questions over its fiscal decisions following revelations that it secured an N11 billion commercial loan for infrastructure despite reporting N55.92 billion in unspent capital receipts as of June 2026.
In a statement issued by a Financial Expert, Mr. James Ayati stated that the figures, drawn from the state’s own financial documents, have sparked concerns about transparency, fiscal discipline and the rationale behind the borrowing, raising a critical question: is Benue truly in need of loans, or is there a deeper issue with financial management?
According to him, many questions were raised by concern people in the state that “did Alia Mismanage Benue’s Rising Revenue and Leave the State Financially Stranded? N56bn Unspent: Why Is Alia Borrowing Another N11bn Instead of Using Benue’s Available Funds?
“If Benue Isn’t Broke, Why Is Alia Loading More Debt Onto Benue Taxpayers? Did Governor Alia squander Benue money and made the state broke? And Why did Alia obtain a loan of N11bn from a commercial bank with a cash back collateral of N54bn in government account unused
He said an examination of the state’s 2025 Audited Financial Statement shows that Benue ended the year with N44.74 billion in unspent capital receipts. Rather than decline, this balance appeared to grow in 2026, according to subsequent budget implementation reports.
He noted that “the Benue State Budget Implementation Report (BIR) for the first quarter of 2026 indicates that the state generated N128.17 billion between January and March. Within the same period, total expenditure stood at N82.28 billion, leaving a surplus of N45.89 billion in unspent capital receipts.
“By the second quarter, the financial position had further strengthened. The BIR for Q2 2026 shows that the state earned an additional N94.26 billion in statutory revenue between April and June. When combined with the N45.89 billion carried over from Q1, total available capital receipts rose to N140.15 billion.
“However, actual expenditure during the quarter was put at N84.23 billion, leaving a closing balance of N55.92 billion in unspent capital receipts at the end of June.
“It is against this backdrop that the state’s decision to borrow N11 billion from a commercial bank has come under scrutiny.
Ayati stated that the move raises fundamental questions about budgeting priorities and cash flow management. If more than N55 billion remained unspent, why incur additional debt, particularly from commercial sources that typically attract higher interest rates?
According to him, the state’s broader fiscal trajectory further complicates the narrative. Available data shows that Benue’s revenue has witnessed remarkable growth in recent years, rising from about N100 billion in 2022 to N148 billion in 2023, N328 billion in 2024, and peaking at N443 billion in 2025.
“At the same time, domestic debt levels have reportedly declined significantly. Data from the State Debt Management Office suggests that debt dropped from approximately N188 billion in the first quarter of 2023 to about N113 billion, representing nearly a 40 per cent reduction.
“Despite this decline, the state has consistently allocated a sizeable portion of its earnings to debt servicing. Since 2023, about 15 per cent of its actual revenue estimated at N171 billion has been spent servicing existing obligations.
“The apparent contradiction between rising revenues, declining debt stock, and fresh borrowing has led to growing calls for clarity.
Ayati noted that borrowing is not inherently problematic, especially when tied to infrastructure development. However, they argue that such decisions must be justified within the context of available resources.
“Key questions remain unanswered. Were there restrictions on the N55.92 billion that made it unusable for infrastructure? Were the funds already committed to specific projects? Or was the borrowing driven by timing gaps in cash flow?
The financial expert insisted that governments must prioritise the efficient use of available funds before resorting to loans, particularly in an environment where debt servicing already consumes a notable share of revenue.
“The concern is not just about borrowing,” the Financial Expert said “It is about whether the state is getting value for money and whether decisions are being made in the best interest of taxpayers.”
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