Benue State Governor, Hyacinth Alia, has revealed that his administration spent $2.82 million (approximately N4.53 billion) between June 2023 and June 2024 to service external loans.
Governor Hyacinth Alia made this disclosure in a statement signed by his Chief Press Secretary, Sir Tersoo Kula, as reported by the News Agency of Nigeria (NAN).
Governor Alia stated that, despite the significant loan servicing commitment, Benue State has not taken on new loans since the beginning of his tenure. He emphasized that the funds were used solely to reduce the state’s existing debt burden.
Inherited Debt
He also noted that Benue inherited over N350 billion in debt from the previous administration and has taken a cautious approach to borrowing despite initiating and completing several projects across the state.
“Recall that having inherited over 350 billion in debts from the previous administration, the administration has been cautious about taking loans, despite initiating numerous projects across the state, with many already completed.
“We are changing the narrative for good governance and massively delivering dividends of democracy to the people.
“We are consistent in insisting that the future of the state comes first and has demonstrated the highest level of decision-making and resource management,” he said.
Focus on transparency
Governor Alia further stressed his administration’s commitment to good governance and delivering dividends of democracy to the people.
“We are changing the narrative for good governance and massively delivering dividends of democracy to the people,” he stated.
- According to the governor, the Debt Management Office (DMO) has confirmed a significant reduction in the state’s external debt profile during the review period.
- According to the recent release of the BudgIT third-quarter 2024 State Fiscal Transparency League Table, Benue State moved up significantly in its ranking. The state surged from its consistent 35th and 36th positions since 2015 to 9th place.
What you should know
Nigeria’s external debt servicing costs have become a significant financial burden, consuming a growing share of foreign payments.
According to the Central Bank of Nigeria (CBN), debt servicing accounted for 63.56% of Nigeria’s total $5.63 billion in foreign payments between January and September 2024. This marks a sharp increase from 46.71% in 2023.
The rising debt servicing costs reflect the increasing strain of Nigeria’s external debt obligations, which rose by 39.77% from $2.56 billion in 2023 to $3.58 billion in 2024.