By Matthew Ajai-Kume and Brenda Agba
The Executive Governor of Benue State, Rev Fr Hyacinth Alia has proposed a budget of Five Hundred and Fifty Billion, One Hundred and Twelve Million, Nine Hundred and Eighty-Eight Thousand, Nine Hundred and Thirty Naira, Forty-Five Kobo (N550,112,988,930.45) only.
This represents a 47.5% increment over the 2024 revised and approved budget.
Presenting the proposed budget christened “Budget of Human Capital Development, Food Security and Digital Economy” to members of the Benue State House of Assembly, the Governor explained the intention of the government is to stay within the limits of its recurring revenue to build a better Benue without accruing unnecessary debts for generations unborn saying, “This explains why Benue State is among the few States in the country that are offsetting their indebtedness, paying salaries and meeting other financial and infrastructure commitments without recourse to borrowing.”
Speaking further, the Governor said, “Since the 2025 budget is a deficit one, it proposes a borrowing plan of a conservative sum of Twenty-Six Billion, and Fifty-Three Million, Nine Hundred and Fifty-Three Thousand, Seven Hundred and Thirty-Six Naira Thirty-Two Koboonly (N26,053,953,736.32). This represents a modest 4.7% of the proposed aggregate expenditure for 2025 which is lower than the state’s Debt-to-GDP ratio of 8.2% and is within the benchmark of the 25% debt sustainability threshold.
“Hon. Speaker, Hon. Members, despite these favourable debt ratios, I want to reiterate that borrowing will only be considered as a last resort and for regenerative investment purposes. So far, we have managed the machinery of government without borrowing. Our financing plan focuses on inwardly sourcing funds to finance the budget and engaging in Public-Private Partnership (PPP) models”, he maintained.
Giving a break down of the proposed budget, Governor Alia disclosed that the sum of One Hundred and Seventy-Five Billion, Four Hundred and Twelve Million, Eighteen Thousand, Two Hundred and Eighty-Four Naira, Four Kobo Only (N175,412,018,284.04) is proposed as total recurrent expenditure which shows a 13.55% increment over the total recurrent cost of the 2024 revised budget.
This provision will according to the Governor, account for the sustenance of minimum wage payments and other incidental costs associated with overheads adding that the state government’s Job Needs Assessment, particularly in schools and civil service, will guide employment decisions going into 2025 with the hope to address the nagging issue of casualization of workers.
On Proposed Capital Expenditure, the Governor explained that in his administration’s desire to sustain modest gains in infrastructure and human capital development including education, health, and poverty alleviation, the state government aims to ensure food security through food availability, accessibility and affordability, and enhance the digitalization of the economy to promote investment and secure our borders.
“To this extent, the budgeted Capital Expenditure (CAPEX) stands at Three Hundred and Seventy-Four Billion, Seven Hundred Million, Nine Hundred and Seventy Thousand, Six Hundred and Forty-Six Naira, Forty-One Kobo Only(N374,700,970,646.41). This amount represents a 71.5% increase over the 2024 Revised Budget, with the expectation that the attendant needs of capital expenditure (CAPEX) will be addressed in the 2025 Budget,” Alia maintained adding that it is noteworthy that efforts to sustain the modest gains recorded in development are observed in the REX and CAPEX ratio, which stands at 32-to-68 (32:68), skewed in favour of capital expenditure in the proposed 2025 Budget.
Governor Alia also gave a breakdown of Sectoral Allocation Estimates of the Fiscal Year 2025 in naira as follows: Administration: 212,278,800,629.9438.52; Economic: 196,621,985,689.0535.68; Law and Justice: 26,697,411,452.114.84; Social: 115,514,791,159.3520.96 totalling 550,112,988,930.45100.00
Further Sectoral Breakdown of Expenditure Estimates include: Education & Knowledge Management: 82,516,948,339.5715.00; Health & Human Services: 82,516,948,339.57 15.00; Agriculture & Food Security: 84,081,754,982.6715.28; Law and Justice: 26,697,411,452.114.85; Security: 46,888,973,558.498.52; Infrastructure: 110,022,597,786.0920.00; Social Welfare: 5,089,558,376.930.93; Commerce: 58,724,704,845.0810.68; Digital Economy: 18,729,673,890.913.40 and others: 34,844,417,359.026.33 totalling 550,112,988,930.45100.00
According to the Governor, “Human Capital Development, which encompasses education and health, is critical in our development agenda. These sectors have a combined budget allocation of 30% of the total budget. The plan is to allocate significant resources to improve the quality of education at all levels. This includes the construction of new classrooms, the expansion of school feeding programs, and the provision of teaching materials and technology that will prepare our children for the future. Furthermore, as we intend to employ teachers, we will continue to prioritize their training and retention to ensure that the next generation of learners have access to the best possible instructors.
“On health, Mr. Speaker, Honourable Members, we recognize that a healthy population is a productive population. Our investment in healthcare will focus on expanding access to quality care, especially in rural and underserved areas. We will enhance the capacity of our hospitals, clinics, and health centres to provide primary, secondary, and tertiary care. Additionally, our focus will be on preventive health measures, including maternal and child health, vaccination programs, and the fight against diseases that disproportionately affect our people.
“Mr. Speaker, Honourable Members, in order to ensure food security and live up to our reputation as the food basket of the nation, this budget provides 15.28% of the total budget for livestock and agricultural production. We plan to invest in modern smart agricultural techniques, irrigation systems, and the provision of high-yield seedling to empower our farmers. The goal is to increase local production, reduce reliance on imported food, and ensure that our agricultural sector is sustainable and profitable for our farmers. Additionally, we will enhance the storage and distribution of farmers’ outputs to prevent post-harvest losses. To ensure food availability throughout the year, we will expand our investment in food storage infrastructure and distribution networks for efficient supply chains that deliver food from farm to market without delay.
“To strengthen peace initiatives and ensure the safety of lives and properties of our people, 8.52% of the Total Budget will be channelled toward enhancing the operational capacity of our existing security organizations.
“Mr. Speaker, Honourable Members, toward sustaining our efforts in the construction of critical infrastructure, we will strengthen Water, Sanitation and Hygiene (WASH) activities, implement land reforms, enhance housing service delivery, sustain our “Project Light-Up Makurdi” initiative, and construct drainage systems and waterways. These activities are expected to gulp 20% of the 2025 Total Budget.
“In an effort to leave no one behind, Mr. Speaker, Honourable Members, we have allocated 0.93% of the budget for programs aimed at improving social protection, which includes unemployment benefits, housing, and poverty alleviation initiatives, while also evolving strategies for the three IDP pathways: Resettlement, Relocation, and Returnees. The Ministry of Humanitarian Affairs and Disaster Management, as a critical enabler within this space, will be funded to liaise with relevant bodies to address the welfare of IDPs. Note that these votes will be complemented by expected inflows from Official Development Assistance via grants and aid schemes to fund some of these activities.
“Furthermore, sports, youth development and creativity being an integral part of our development efforts will be funded from 0.93% of the total budget. In essence, this budget proposes to increase funding for facilities that support sports development and local talent hunt in the state.
“Closely related, Mr. Speaker, Honourable Members, is the intent of this budget to empower small businesses and startups to thrive. In 2025, we will implement programs to provide financial support, training, and mentorship to entrepreneurs, particularly in tech-driven industries. Votes amounting to 10.68% of the budget are allocated for this purpose, with the capacity to empower women and youths through job creation and improved access to business capital.
“In our “Let’s Go Digital” initiative, we have recognized that the future of the global economy is digital, and we must position ourselves as leaders in this space. In 2025, our administration will prioritize the development of a robust digital economy; one that harnesses the transformative power of technology to unlock opportunities for businesses, create jobs, and enhance the delivery of government services. To digitalize our economy, we intend to begin building digital infrastructure and providing e-government services to reduce bureaucracy, improve service delivery, and ensure that citizens can access government services from the comfort of their homes. Additionally, we intend to establish innovation hubs where young minds can explore their creativity, develop ideas, and launch the next generation of tech companies. We need to set the foundations for a strong economy. And on top of that, we need to start building an economy of the future based on skills and talents and education and the application of technology; knowing that the forces of global competition and technology mean that we can only compete based on skills and talents. To this end, 3.40% of the total budget is proposed for this initiative, as the digital economy is not just about big corporations but also about empowering small businesses and startups.
“Furthermore, Mr. Speaker, Honourable Members, the reengineering of a functional budget system, fiscal transparency, and fiscal strengthening in the state and local government system has been coordinated by the Budget and Economic Planning Commission under my watch. This effort has yielded positive results for the Benue economy. The positive feedback includes the fiscal performance ranking, where Benue State has climbed 22 steps up the ladder, now ranked 9th out of 36 states in the country as of the third quarter of 2024. This is a significant improvement. For context, in the last Countrywide Fiscal Rankings in 2022/May 2023, Benue State was ranked 36th out of 36 states. Mr. Speaker, Honourable Members, this is cheering news, showing that our reforms are working.
“Mr. Speaker, Honourable Members, we have taken steps to ensure that the Ministry of Information, Culture, and Tourism meets its great potential. To consolidate these gains, we have provided the sum of One Billion, Three Hundred and Thirteen Million, Seventeen Thousand, Four Hundred and One Naira, Fifty-Six Kobo Only (N1,313,017,401.56) of the total budget to reposition the Benue State Arts Council Complex. This will also ensure that the Benue State Television Corporation and Radio Benue can optimally disseminate information to the Benue populace about government activities, as well as provide the requisite platform for feedback on governance, through constructive critiques of her policies. We hope this will keep us on our toes and ensure that the entire governance structure does not rest on her oars.
“At this juncture, Mr Speaker, Hon Members, it is worth mentioning that the current State Development Plan is elapsing by the end of 2024. Accordingly, my Economic Management Team has elaborated my policy road map tagged “A Strategic Development Agenda for a Greater Benue” into an initial 10-year costed Development Plan from 2025 to 2034. This State Development Plan, which is to be launched before year-end, captures critical details in terms of baselines, targets, KPIs, SDG criteria and associated costs of all projects, programs and initiatives to be reflected in all our annual plans going forward.
“The Governor noted that the implementation of the 2025 Budget is expected to come with its challenges, which include: The volatility associated with most of the critical macroeconomic fundamentals that form the basis for this budget, such as the inflation rate, exchange rate, oil production benchmark, FAAC, and ODA inflows; Pressure on statutory receipts associated with managing outstanding domestic and foreign debts; the challenge of arrears in salaries, pensions, and gratuities owed to the Benue State public sector workforce, which has the capacity to limit funding of development programs; The garnishing of government accounts, which constrains governance and economic growth; the narrowing gap between financing recurrent and capital votes as well as insecurity within the Benue Valley that challenges the business climate.
He however assured that the State Government has put in place measures to mitigate those challenges including: cautiously structuring the assumptions of the 2025 Budget projections with built-in buffers that will absorb unforeseen shocks to the system; sustaining improved technology in tax collection and payroll systems to stem leakages; implementing a smart staff and management register to enhance workers’ productivity, which can precipitate economic growth and bridge unforeseen shocks; optimizing Official Development Assistance (ODA) to release funds for other critical development areas; Sustaining the ALIA-CARES initiative to provide grants to farmers and Nano/small business holders as buffers against negative externalities; formal roll out of the Benue State Economic and Investment Advisory Council (BEIAC) to embed an Economic Agenda for the State, lead efforts in the privatisation/commercialisation of State Enterprises, development of the Benue 20/30-Year Economic Development Master Plan, advising on policies, identifying investment opportunities, and fostering partnerships that will enhance our State’s economic landscape.
Alia therefore assured the Speaker, Honourable Members, and Benue citizens that his government is open to constructive criticism, with the intent to meet the aspirations of the Benue people, who have entrusted him with this mandate.
“The 2025 Budget of Human Capital Development, Food Security, and Digital Economy is a roadmap to a brighter, more sustainable future. It is a bold and ambitious plan, but one that is grounded in the realities of our time and in the aspirations of our people.
“We have the vision. We have the will. And most importantly, we have the people ready to work alongside us to turn this vision into reality. Together, we will build a state where every citizen has the opportunity to succeed, where food is plentiful, and where the digital economy opens new frontiers of opportunity for all.
“I urge this Honourable House to give the necessary support to this budget. It is not just a financial document but a blueprint for the future of our state – a future that is brighter, more inclusive, and more prosperous for all’, he summed.
Responding, the Speaker, Benue State House of Assembly, Rt. Hon. Aondona Dajoh who commended the Governor over the achievements already recorded by his administration, assured him that the house will carry out the necessary legislation to pave the way for speedy passage of the 2025 Budget.
He however called on the Governor to ensure the immediate completion of the ongoing renovation work on the Assembly Complex towards providing conducive working environment.
Governor Alia was accompanied to the Benue State House of Assembly by his Deputy, Barr. Sam Ode and other members of the Benue State Executive Council.
