Benue spends N21.40bn on debt servicing in Q1 2025
The Benue State government has spent N21.40 billion on debt servicing in the first quarter of 2025, translating to about N7.4 billion monthly loan repayment. Managing Director of Benue Investment and Property (BIPC) Dr. Raymond Asemakaha, disclosed this in a statement on Sunday to buttress why BIPC has been investing in high income yielding businesses […]
The Benue State government has spent N21.40 billion on debt servicing in the first quarter of 2025, translating to about N7.4 billion monthly loan repayment.
Managing Director of Benue Investment and Property (BIPC) Dr. Raymond Asemakaha, disclosed this in a statement on Sunday to buttress why BIPC has been investing in high income yielding businesses to improve Benue revenue position.
He said the state’s domestic debt currently stands at N122.5 billion, while its total foreign debt is $26.4 million, explaining that the situation gives the state a debt service ratio of 413 per cent, meaning a large portion of its monthly revenue and federal allocation are often used to offset existing loans.
Asemakaha likened the management of Benue’s debt-laden economy to “flying an aircraft through turbulent headwinds,” noting that the administration of Governor Hyacinth Alia is applying diligence and fiscal discipline to navigate the state toward economic stability and growth.
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He further explained that despite improved monthly allocations from the Federation Account Allocation Committee (FAAC), debt servicing obligations continue to weigh heavily on the state’s finances.
The BIPC boss noted that to address the situation, the governor has been aggressively pursuing alternative income sources and strategies to boost Internally Generated Revenue (IGR) and reduce over reliance on federal allocations.
He added that the BIPC currently invests in high-yield ventures aimed at improving the state’s revenue position, while the government also implements policies to attract private sector investment and stimulate economic development.
Asemakaha maintained that ongoing infrastructure investments are designed to create an enabling environment for businesses to thrive and generate employment opportunities, stressing that the government is optimising its budget by prioritising essential services and key infrastructure projects to ensure sustainable growth.