Tension Deepens Between Governor Alex Otti and Deputy Speaker Benjamin Kalu Over $263.8 Million Abia Loan

The political feud between Abia State Governor, Dr. Alex Otti, and the Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Kalu, has intensified following a heated exchange over a $263.8 million loan facility secured for the Abia State Integrated Infrastructural Development Project (ABSIID).

The state’s Chief Liaison Officer to the National Assembly, Chief Iheanyi Chinasa, openly criticized Kalu for what he described as “false and politically motivated” statements regarding the loan. Chinasa, who is from the same Bende constituency as the Deputy Speaker, accused Kalu of deliberately misleading the public about the facility and the state government’s handling of it.

According to Chinasa, the loan was obtained from a consortium of three international financial institutions — the Islamic Development Bank ($125 million), African Development Bank ($100 million), and Canada–Africa Development Bank ($15 million) — while the Abia State Government provided $23.8 million as counterpart funding.

He clarified that contrary to Kalu’s insinuations, no funds had been drawn from the facility.

“These funds are still with the banks. The state has not drawn a single kobo from them as I speak. This information is in the public domain for anyone to verify,” Chinasa stated.

He accused the Deputy Speaker of “crying wolf where there is none,” insisting that the Otti administration remains transparent and focused on driving development with available resources.

Chinasa further challenged Kalu’s political motives, suggesting that his criticisms stem from an ambition to rival Governor Otti in the 2027 gubernatorial election.

“If he thinks he has the popularity and capacity to compete with Governor Otti, he should wait for 2027 and contest,” Chinasa said.

The Liaison Officer also urged Kalu to focus on his legislative duties, especially in representing the people of Bende Federal Constituency effectively, instead of engaging in what he termed “unprovoked attacks” against the state government.

Tensions between both political figures have been rising since Kalu recently claimed that developments in Abia State were not commensurate with the state’s increased revenue. He attributed the rise in federal allocations to President Bola Ahmed Tinubu’s economic reforms, particularly the removal of fuel subsidy, and suggested that the Otti administration had not justified its access to funds.

Chinasa dismissed the Deputy Speaker’s assertions as baseless, emphasizing that the Otti-led administration has performed creditably despite economic challenges. He maintained that the ABSIID project, once disbursed, would deliver long-term infrastructural transformation across Abia State.