Below is an extract from the 2021 State of the States Report by BudgIT
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It is a very damming report on the economy of Benue State as at 2020. Some of us knew that it was bad but I was not prepared for this bad. The report states that; “…the state known as the “Food basket of the Nation”, was unable to translate its agricultural fruitfulness into fiscal fruitfulness in 2020… The state fell from its 32nd position in 2020 to 34th position in the 2021 Fiscal Performance Ranking”. It was observed that Benue also experienced negative growth: In 2019 Benue spent N12.65bn and in 2020, it spent N8.40bn (a difference of N4.25bn) decreasing by about 33.59%. This decline in actual capex translates to N1,298 per capita—the lowest in the entire federation—which is a far cry from the national average of N8,129. Perhaps more disturbing (despite the occurrence of the COVID-19 pandemic) is the fact that the state spent eight times more on recurrent expenditure (N69.73bn) in 2020, than on capex (N8.40bn). The bulk of the spending on recurrent expenditure, went to ‘Personal Emoluments’ [sic] and ‘Overhead costs’, which represents 92.68% of the total recurrent expenditure. Benue state had one of the worst IGR performances in the federation. Its IGR fell by 41.38% from N17.85bn in 2019 to N10.46bn in 2020. The 2020 total debt figures of N138.48bn translates to a debt per capita of N21,390 and Benue is one of the 5 states in the federation with the highest additions to their total debt stock. Its debt stock grew from N108.96bn in 2019 to N138.48bn in 2020. Ability to meet their Operating Expenses (Recurrent Expenditure) obligations with only the sum of their Internally Generated Revenue and VAT received. 34 out of 36 states. Ability to cover all operating expenses and loan repayment obligations with their Total Revenue (Internally) 35 out of 36 states. How much fiscal room states have to borrow more 30 out of 36. Degree to which each State prioritises capital expenditure with respect to their operating expenses (recurrent expenditure), 36 out of 36. Poverty rate of 32.90%. Domestic debt is =N=126.13 billion while foreign debt is $32.5 million. Debt per capita is =N=21,390.00Unemployment rate of 55.50%. Recommended job creation target of 84,828 for the next four years.
For those of us seeking to govern the state come 2023, this is the type of economic mess we should expect. Reversing these numbers will involve very deep creative thinking and unorthodox policy actions. I urge all aspirants to read the report and begin to think of solutions. For whoever picks the ticket and gets elected, he or she will need help from us all.
BPGG MEDIA GROUP
