The Benue State government and global credit rating agency Fitch Ratings have participated in the State Government’s latest fiscal resilience measures following a high-level engagement focused on strengthening economic stability ahead of 2026.
According to a communiqué issued after the session, the reforms align with State Government’s 2025 fiscal agenda and are designed to protect the state from expected financial shocks linked to tax reforms that are to implemented in 2026, oil price volatility, FAAC fluctuations, and insecurity-related disruptions.
BIPC Group Managing Director, Dr. Raymond Asemakaha-CFA, accompanied by the company’s Chief Risk Officer, Andrew Simon, reiterated the agency’s commitment to economic stability.
“For Benue state to be able to contribute to VAT under the new tax law to be rolled out in 2026, the state need to begin to look at modalities to add value proposition on its agricultural produce as best case to have more FAAC allocation. Already, Benue has started value addition on its agricultural produce to enable the state have VAT Increment.
“As we thrive forward it’s is expected for Benue Government and other states to begin to prepare for possible shock in the coming year 2026. BIPC is proud to contribute to this resilience agenda by diversifying investments and strengthening partnerships, we are ensuring that the State’s economy remains robust and attractive to investors in 2026 and beyond.”
Benue State, Commissioner for Finance, Michael Oglegba, said the administration has built “a fiscal framework that anticipates shocks,” assuring citizens that the state is prepared to withstand future pressures while pursuing sustainable growth.
Key measures implemented at the high level engagement included; fiscal stabilization fund created to cushion the state against revenue shocks from oil price changes, tax adjustments, and inconsistent federal allocations; digital revenue system deployed by introducing technology-driven platforms to enhance efficiency, transparency, and accountability in Internally Generated Revenue (IGR) collection while curbing leakages.
Other key measures are; revenue Diversification Strengthened with
BIPC driving new Public-Private Partnerships;
Debt Sustainability Achieved through fiscal discipline, security-Integrated Fiscal Planning and Global Reporting Standards Adopted.
Fitch Ratings Senior Director for International Public Finance, Chiaramaria Mozzi acknowledged the measures as essential to improving the state’s credit outlook and attracting quality investments.
Chiaramaria Mozzi commended the Benue State Government for taking decisive steps to significantly reduce the state’s debt burden inherited from previous administrations.
She acknowledged the proactive steps of Benue State Government investment in strategic adjustments under the leadership of His Excellency, Rev. Fr. Hyacinth Iormem Alia, the Executive Governor of Benue State.
According to Chiaramaria, the investment will enable Benue state financial profile improve and reduce the over dependency on federal allocation receivables.
“Our investment advice is that, Benue State Government need to invest in Electricity market, industrial development, Tourism and Agriculture processing,” Chiaramaria concluded.
The high-level engagement reforms have positioned the state for a more resilient fiscal year in 2026, marked by diversified income sources and reduced FAAC dependence.
