*Spends N7.4bn monthly on debt servicing
By Dr Raymond Asemakaha
Driving Benue’s debt trapped economy is akin to flying an aircraft into a turbulent headwinds. It would take diligence and craft to navigate the plane to safety.
Benue State Domestic Debt Profile stands at whooping N122.5B Billion while total Foreign Debt is $USD26.4 Million. This leaves Benue state with a Debt service Ratio of 413%.
Thus, it is with candour and statecraft that His Excellency, the Executive Governor of Benue State Rev.Fr Hyacinth Alia PhD is driving Benue’s economy into economic prosperity.
It’s a given that FAAC monthly allocations have improved significantly.
However, in the midst of these increases, Benue with a debt service ratio at 413% means a significant portion of Benue’s revenue and Federal allocation goes to debt servicing.
What this means is that in Q1 2025, Benue State’s debt service cost was N21.40 billion deducted from FAAC allocation as loan repayment.
It’s important to note that Benue State spends N7.4 billion on debt servicing monthly.
Given the complexities surrounding the over dependency on FAAC, the Governor is aggressively pursuing alternative income sources so as to grow the Benue state internal revenue generating capabilities to depend less on federal allocations
This is why the Benue Investment and Property (BIPC) is investing in high income yielding businesses to improve Benue revenue position.
The government is also prioritising policies that encourage private sector investments, and spur economic development.
Again, the ramp up of investments in infrastructure is to provide enabler for businesses to thrive in the state and create new employment opportunities.
Budget Optimization: The governor is also reviewing budget allocations to prioritize essential service and infrastructure projects.
Without a doubt, it’s clear that his Excellency’s approach on economic management is yielding result and reducing the burden for the state for optimal performance.
The data on the return on investment of some BIPC new industries is sufficient testimony to lend credence to positive outcomes of governor Alia’s stewardship.
Dr Raymond Asemakaha is the GMD, Benue Investment and Property Limited.
