Benue Govt spends over N7bn on debt Service monthly- -Asemakaha 

From Attah Ede Makurdi 

Benue State’ Government has revealed that N21.40 billion was deducted from Federation Account Allocation Committee(FAAC) in the first quarter of 2025 for debt services and  loan repayment of the State.

It further said that the State Domestic Debt Profile stands at whooping N122.5B Billion while total Foreign Debt is $USD26.4 Million,  leaving state with a debt service ratio of 413%.

The Group Managing Director, Benue Investment Property Limited(BIPC), Raymond Asemakaha, disclosed this in a statement on Sunday in Makurdi.

He noted that driving Benue’s debt trapped economy is akin to flying an aircraft into a turbulent headwinds and  would take diligence and craft to navigate the plane to safety. 

According to him, it is with candour and statecraft that Governor Hyacinth Alia 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”, Asemakaha stated.

The GMD announced that government is also prioritising policies that encourage private sector investments, and spur economic development.

He maintained that the ramp up of investments in infrastructure is to provide enabler for businesses to thrive in the state and create new employment opportunities. 

“The governor is also reviewing budget allocations to prioritize essential service and infrastructure projects.

“Without a doubt, it’s clear that his Excellency”a 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”, he quipped