ALIA’S FULL 2025 BUDGET SPEECH:Budget of Human Capital Development, Food Security, and Digital Economy
At the Special Budget Session of the Benue State House of Assembly, Makurdi
Wednesday, 11 December 2024.
Delivered By:
His Excellency, Rev. Fr. Dr. Hyacinth Iormem Alia,
The Executive Governor of Benue State, Nigeria
PROTOCOL:
Mr. Speaker, Distinguished Honourable Members…
1A. INTRODUCTION
With great pride and a profound sense of responsibility, I present to this Honourable House and the people of our great state the 2025 Budget christened Budget of Human Capital Development, Food Security, and Digital Economy. This budget is designed to ensure continued progress, prosperity, and well-being for all our citizens. The focus for the Fiscal Year 2025 is reflectedin our unwavering commitment to the three pillars that will drive our future: People, Sustainability, and Innovation (PSI).
As we chart a course for the year ahead, we remain mindful of the challenges and opportunities before us. The year 2025 marks a critical juncture in our journey towards building a resilient, self-reliant, and forward-thinking State. We are laying the foundation for a brighter future, one that ensures no citizen is left behind, our food systems are robust and capable of feeding all, and we harness the power of technology to open new frontiers for economic growth and development.
B. The Development Challenges and Progress Contextualized
1. Addressing Workforce Challenges: Mr. Speaker, Honourable Members, the malaise and negative implications associated with an unpaid workforce, which stifles economic growth, have been largely addressed as the payment of workers’ salaries has been stabilized. This government has also started clearing both salary and pension arrears. It is our hope that all remaining months of salary arrears owed to workers will be cleared in 2025. Additionally, we plan to reasonably pay pensions and gratuities owed to our senior citizens. We hope these measures will spur consumption, translating into investment, with the concomitant effect of positive economic growth trends, especially with the recently approved N75,000 minimum wage having a multiplier effect on the economy.
2. Fiscal Transparency and Sustainability: Mr. Speaker, Honourable Members, our vaults were practically empty as of 2023 when we assumed office. Despite being constrained by lean resources, we have improved tremendously in our State of States fiscal transparency and sustainability ranking. A tale further reinforced by our positive outlook as rated by Fitch Ratings.
3. Infrastructure Rehabilitation: As a corollary, the decay we met in our state’s infrastructure – urban and rural roads, health facilities, public buildings,furniture and fittings, working tools, water, and hygiene – has received a major boost. However, we recognize that more work needs to be done in these areas.
4. Enhancing Security: We are turning the tide on security concerns in the State. Though there are still pockets of insecurity, our strategies are yielding results, as evidenced by the relative calm in most parts of the State. Our amnesty program has also shown promise, with some bandits embracing peace in exchange for their arms and ammunition.
5. Improving IDPs’ Living Conditions: The problem of Internally Displaced Persons (IDPs) remains a challenge. However, we have reasonably improved their living conditions. We have taken stock of their numbers and carried out a needs assessment to determine the costs for the three IDP pathways: Resettlement, Relocation, and Return. Worthy of note is our dual strategies of partnering with donors to evolve the DURABLE SOLUTIONS and SOLIDS programs, with implementation benefits expected to commence in 2025. These efforts are expected to bring significant relief to our IDPs.
6. Development Financing and Grants: Mr. Speaker, Honourable Members, let me reiterate that the commitment made about a year ago to enhance development financing has started yielding dividends. It is gladdening to state that under my watch, our Bureau of International Cooperation and Development has elicited substantial grants from donors, totalling Eighty-Five Billion and Seventeen Million, Six Hundred and Twenty-One Thousand, One Hundred and Eleven Naira, Eleven Kobo Only(N85,017,621,111.11K). At a performance of 110.51%, this exceeded our expectations.
Mr. Speaker, Hon Members, it is cheering news that we have secured forty-six (46) slots for Benue sons and daughters, on the UNITED NATIONS VOLUNTEER FULL FUNDED SCHOLARSHIP PROGRAM through the Bureau of International Cooperation and Development, which is a game-changer for the State at the international level. The first batch of eight (8) persons has already started volunteer work at key United Nations Agencies. The future for these sons and daughters of Benue State and our economy is opportunity-ridden!
7. Unemployment and PPP Adjustments: With a combined 33% statistic of unemployment and underemployment, we have reneged on certain obnoxious Public-Private Partnership (PPP)agreements entered into by the previous administration which has necessitated our return to the courts to resolve these issues. These efforts aim to recalibrate earlier decisions on these arrangements, to create a thriving investment ecosystem that generates substantial returns and creates jobs. Furthermore, our collaboration with the Federal Government has led to the establishment of a Fashion Hub, and the securing of budget support funds via the NG-CARES program, to support Nano and small-scalebusinesses, and our farmers. These efforts have reduced unemployment, created wealth, and alleviated poverty for the 30,000 direct beneficiaries of these programs.
8. Clearing Salary Arrears for Supporting Programs: Our administration inherited a backlog of salaries and incentives for personnel across several programs. Notably, we have cleared between 19 to 23 months of salary/incentive arrears for Benue citizens involved in programs like SOCU and NG-CARES. These efforts have not only stimulated our economy through consumption andpoverty alleviation but also unlocked unprecedented construction and rehabilitation efforts for about 120 micro projects across the state. These include construction and rehabilitation works on Primary Health Care Centres, boreholes, classroom blocks, and town halls.
9. Agriculture and Food Security: Our efforts in agriculture and food security include providing fertilizers and farm inputs via grants, and subsidies of up to 50%. These interventions have significantly mitigated challenges faced by farmers, ensuring timely access to farm inputs. These efforts have sustained jobs, alleviated poverty, boosted the income of Benue citizens, and increased farm production in our rural economy.
10. Revitalizing Investments: Our recapitalization of the Benue State Investment and Property Company has led to investments in profitable stocks andshares and the establishment of factories producing water, bread, fertilizer, polythene and nails. Additionally, a motorbike hire-purchase scheme has been introduced for our semi-skilled workforce. These efforts are geared towards mitigating unemployment and stimulating economic growth.
11. Promoting Microfinance: Mr. Speaker, Honourable Members, our State previously lacked a savings mobilization mechanism that could channel investments into rural communities. I am pleased to announce that our efforts have secured a banking license for our State-owned Microfinance Bank, NOVUS Microfinance Bank. This bank is already galvanizing small businesses in our communities and has received funds from our government towards compensation for land to be acquired for the Renewed Hope Housing Estate.
12. Advancing the Digital Economy: Our efforts in the digital economy space have started yielding results. This sector is expected to play a critical role in 2025 by addressing unemployment and creating wealth. Aside our earlier efforts of training Ten Thousand (10,000) youths in our Benue Go Digital (ICT)Initiative, these modest gains have earned us recognition, including our selection as one of the nominees for the award of “Digital Governor of the Year” at the National Information Technology Merit Award organized by the Nigerian Computer Society, as well as, the hosting rights for the 12th Communication and Digital Economy Council Meeting in Benue State. These recognitions are catalysts for further economic growth within the Benue space.
13. Civil Service Development: Our efforts to train and retrain civil servants for optimal service delivery have led to the establishment of the Benue State Public Service Institute, BSPSI. This Institute is administering promotional exams and offering training programs for our workforce. Additionally, we have upgraded infrastructure and working tools across Ministries, Departments, and Agencies to provide a conducive working environment.
14. Assembly Complex Renovation: The Benue State House of Assembly Complex renovation is 80% complete. With your cooperation, Mr. Speaker and Honourable Members, the government intends to ensure the completion and full furnishing of this facility in 2025.
15. Urban Lighting Projects: Mr. Speaker, Honourable Members, tremendous progress has been made in the Project Light-Up Makurdi Initiative, which focuses on installing and maintaining solar streetlights in urban centres. We aim for 80% completion by 2025.
16. Education Sector Investments: In addressing poor and dilapidated infrastructure in our basic education schools, reducing high teacher-student ratios, and stemming high dropout rates in our education sector, we committed Three Billion, Two Hundred Million Only (N3.2 billion) to SUBEB, towards unlocking counterpart funds of the same proportion. The expectation is to efficiently channel these funds to education infrastructure renewal in order to eliminate these negative ratios. Additionally, five hundred and sixty-six million, nine hundred and ninety-eight thousand, three hundred and twenty-two Naira fifty kobo (N566,998,322.50K) only was provided to cover registration fees for final year students writing the WAEC, NECO, and NABTEB exams in government secondary schools. This initiative aims to curb student dropout rates and provide financial relief to parents.
17. Transportation Improvements: Honourable Members, the commuting challenges faced by Benue citizens depleted their disposable income, given the rising inflationary pressure. Last year, we supported our state-owned transportation company, Benue Links Nig. Ltd., with the purchase of 100 buses. This year, we secured a bus terminal for the company in Abuja, reducing costs associated with renting one and ensuring fare stability for commuters.
18. Land, Survey and Solid Minerals: Our State is endowed with vast land and natural resources, which remain largely underutilized. To unlock their full potential, the government attracted Federal Presence and the accompanying capital in-flow to the State. Collaboration with the Nigerian Navy, Nigerian Air force, Federal Housing Authority, Federal Correctional Service, NAFDAC, Nigeria Immigration Service has led to the siting of their regional and/or operational facilities in Benue State.
19. Mr. Speaker, Honourable Members, we have enhanced the land survey system to enable better mapping and seamless land administration. This has improved land tenure security and reduced land disputes. Again, through our MIREMCO initiative, we have strengthened regulations that promote sustainable mining practices which will protect our environment, improve community relations, sanitise the mining sector, and generally ensure that the extraction of solid minerals benefits the Benue people. With these efforts, we aim to not only increase revenue but also create jobs and encourage responsible investments in the solid minerals sector.
20. Women in Development: The role of women in nation-building cannot be overstated. Our administration placed emphasis on the empowerment and welfare of women, ensuring their participation in all facets of our national life. About two thousand (2000) women are direct beneficiaries of the ALIA-CARES initiative of our government, most of whom were victims of Gender-Based Violence, GBV. In concert with the Federal Ministry of Women Affairs, efforts were intensified to combat all forms of gender-based violence, by strengthening support systems for survivors, creating awareness, and ensuring that perpetrators are brought to justice.
21. Rural Cooperatives and Development: The backbone of our economy lies in the rural areas, where most of our people live and work. Our government has been both a driving force for rural development by supporting cooperatives that empower rural communities through activities of the FADAMA program, and as well as structuring a roadmap for access to capital for cooperatives viathe ALIA-CARES initiative, going into 2025. These developments will boost the productivity of rural communities and help reduce the rural-urban migration. By prioritizing rural development, we are ensuring that the benefits of national growth are shared equitably with those who have historically been underserved.
22. Justice and Public Order: A just society is the foundation upon which progress is built. Therefore, the government remains committed to strengthening the justice system and maintaining public order. Modest gains in this regard include Renovation of Chief Justice Court Room to international standards; granting of financial autonomy to the Legislature and Judiciary, appointment of six (6) High Court Justices and the accompanying renovation of six (6) houses forJudges; fully equipped with workstations and ICT tools for e-library at the Ministry of Justice; constituted and fully funded three (3) Commissions of Inquiry, compliance with and payments of judgement debts.
23. Sports and Youths Development: Sports have the power to unite us, inspire excellence, and elevate our pride as a State. Recognizing the immense potential of sports to contribute to both individual well-being and national development, we are making substantial investments to uplift this sector. The upgrading of our Aper Aku stadium to a state-of-the-art facility is at 80% completion; the resurgence of Governor’s Cup after so many years in years in limbo, has been receivedenthusiastically. This platform will serve as a springboard for repositioning Benue football athletes to gain national and global recognition. Our participation in the National Youth Games in Asaba is a testimony to our desire to use sports as a tool for diplomacy, promoting the State’s image and building connections through sporting events.
C. The Approved and Revised 2024 Budget
24. Overview of the 2024 Approved Budget: Mr. Speaker, Honourable Members, it is important to note that in our effort to mitigate challenges and attain the stated goals earlier highlighted and drawn from my blueprint titled “A Strategic Development Plan for a Greater Benue” the 2024 budget, tagged “Budget of Infrastructure Development, Job Creation, and Poverty Alleviation,” was initially pegged at Two hundred and Twenty-Five Billion, Seven Hundred and Twenty-Seven Million, Three Hundred and Five Thousand, Two Hundred and Six Naira, Ninety-Seven Kobo (225,727,305,206.97) Only.
25. Given that many assumptions relied upon for implementing the budget were significantly misseddue to substantial changes in critical macroeconomic fundamentals, a revision of the 2024 Approved Budget was made. This revision provided for an increase of One Hundred and Seventy Billion, Eight Hundred and Ninety-Four Million, Four Hundred and Seventy-Three Thousand, One Hundred and Thirty-Six Naira Only (170,894,473,136), as the Supplementary Budget for 2024.
26. Thereafter, a downward revision to One Hundred and Forty-Seven Billion, Two Hundred and Ninety-Three Million, One Hundred and Seventy-Two Thousand, One Hundred and Twelve NairaOnly (N147,293,172,112) was made. This revision provided a buffer for accommodating the N75,000 minimum wage.
27. These adjustments meant that the overall budget amount for 2024 came to an aggregate sum of Three hundred and Seventy-Three Billion, Twenty Million, Five Hundred and Sixty-Seven Thousand, Three Hundred and Nineteen Naira Only (N373,020,567,319). This represented a 65.3% increase over the original 2024 Budget. The increase was primarily due to built-in buffers, enabling the state to absorb shocks arising from macroeconomic uncertainties.
28. This buffer allowed the state to meet her financial obligations, and also enabled the adjustment of salaries for civil servants between Grade Level 7 to Grade Level 17, whose salaries were predicated on the outdated minimum wage of Eighteen Thousand Naira Only (N18,000) for over a decade. This category of workers was upgraded to a minimum wage of Eighty-Seven Thousand Only (N87,000). In our negotiations, we assured the Nigeria Labour Union of our plan to clear the remaining two months out of the five months of salary arrears provided within the 2024 Fiscal Year. Going forward into the 2025 Fiscal Year, our intent is to clear the remainingfive (5) months owed as salary arrears. This will ensure that the 10 months’ backlog of salary arrears owed civil servants that we inherited as a government will be completely cleared.
D. Revised 2024 Total Budget Performance
29. As of October 2024, the total budget performance(Recurrent and Capital) was 64.8%, amounting to Two Hundred and Forty-One Billion, Seven Hundred and Fifty Million, Two Hundred and Twenty-Nine Thousand, Two Hundred and Eighty-Eight Naira, Seventeen Kobo Only(N241,750,229,288.17).
A disaggregated performance as of October 2024 shows:
i. Recurrent Expenditure: 70.1%, or One Hundred and Eight Billion, Two Hundred and Fifty-Seven Million, Two Hundred and Twenty-One Thousand, and Three Naira, Fifty-Two Kobo only (N108,257,221,003.52K).
ii. Capital Expenditure: 61.1%, or One Hundred and Thirty-Three Billion, Four Hundred and Ninety-Three Million, Eight Thousand, Two Hundred and Eighty-Four Naira, Sixty-Five Kobo Only (N133,493,008,284.65K).
E. Underlying Principles of the Proposed 2025 Budget
30. Human Capital Development: Mr. Speaker, Distinguished Honourable Members, the bedrock of any thriving society is its people. We cannot aspire to be a truly great state without investing in our most precious asset – our human capital. In 2025, we are poised to sustain our investments in education, healthcare, and vocational training to ensure that our citizens are equipped with the skills and knowledge needed to succeed in a rapidly changing world. In collaboration with the Federal Government of Nigeria, under the leadership of President Bola Ahmed Tinubu, the Human Capital Opportunities, Prosperity, and Equality (HOPE) Project, as well as the NG-CARES scale-up, will serve as the fulcrum for resource mobilization and human capital development activities.
31. Food Security: Food security remains of paramount importance. No society can truly flourish if it cannot feed its people. In 2025, we are committed to ensuring that our state is food-secure, both now and in the future. Our approach will be both productive and sustainable, promoting climate-smart farming practices that protect our land, water, and environment. We will support farmers through training on sustainable practices, agroforestry, and renewable energy solutions to reduce agriculture’s environmental impact.
32. Digital Economy: The future of the global economy is digital, and we must position ourselves as leaders in this space. In 2025, our administration will continue to 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.
F. Key Assumptions of the 2025 Budget Estimates
33. Mr. Speaker, Honourable Members, in the current fiscal year, our country has witnessed unprecedented changes in macroeconomic fundamentals due to the twin Federal Government policies of fuel subsidy removal and market pricing of foreign exchange. Based on these realities, the following key assumptions underpin the functional and fiscal flexibility of the 2025 budget:
i. National Real Gross Domestic Product (GDP) growth projected at 4.46%.
ii. Expected national crude oil prices at a $75 benchmark.
iii. Oil production rate benchmark of 2.0 million barrels per day.
iv. Naira exchange rate at N1,400 per dollar.
v. Sustained increases in FAAC inflows following the removal of fuel subsidy.
vi. Stable core inflationary rate predicted at 27.4%.
vii. VAT rate assumed at 7.5%.
viii. Anticipated 300% increase in Internally Generated Revenue (IGR) and continued efforts to block revenue leakages.
ix. Sustenance and improvement of Official Development Assistance (ODA) sources.
x. Sustenance of the debt amortization plan.
G. PROPOSED ESTIMATES OF THE YEAR 2025 BUDGET OF HUMAN CAPITAL DEVELOPMENT, FOOD SECURITY, AND DIGITAL ECONOMY
H. Consolidated Framework
34. Following the assumptions of the proposed 2025 budget and the performance of the approved revised 2024 budget as of October 2024, the proposed 2025 Budget of Human Capital Development, Food Security, and Digital Economy has its consolidated framework presented as follows:
I. Proposed 2025 Total Revenue
35. Following the approval for the revision of the 2024 approved budget and its subsequent third quarter year-to-date (3YTD) performance, the 2025 budget proposes an aggregate of expenditure 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 only (N550,112,988,930.45). This represents a 47.5% increment over the 2024 revised and approved budget.
J. Proposed 2025 Borrowing Plan
36. Mr Speaker, Honourable Members, the intention of the government is to stay within the limits of its recurring revenue to build the Benue of our dreams, without accruing unnecessary debts for generations unborn. This explains why Benue State is among the few States in the country that are offsetting theirindebtedness, paying salaries and meeting other financial and infrastructure commitments without recourse to borrowing.
37. However, 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 (N26,053,953,736.32K). This represents a modest 4.7% of the proposed aggregate expenditure for 2025. This is lower than the State’s Debt-to-GDP ratio of 8.2% which is within the benchmark of the 25% debt sustainability threshold.
38. Hon. Speaker, Hon. Members, despite these favourable debt ratios, I want to reiterate thatborrowing will only be considered as a last resortand for regenerative investment purposes. So far, we have managed the machinery of governmentwithout borrowing. Our financing plan focuses on inwardly sourcing funds to finance the budget and engaging in Public-Private Partnership (PPP) models.
K. Proposed Recurrent Expenditure
39. 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. This shows a 13.55% increment over the total recurrent cost of the 2024 revised budget.
40. This provision will account for the sustenance of minimum wage payments and other incidental costs associated with overheads. Additionally, Mr. Speaker, Hon. Members, our Job Needs Assessment, particularly in our schools and civil service, will guide employment decisions going into 2025. With these votes, we hope to address the nagging issue of casualization of workers.
L. Proposed Capital Expenditure
41. Honourable Members, our desire to sustain modest gains in infrastructure and human capital development including education, health, and poverty alleviation remains strong. In essence, we aim to ensure food security through food availability, accessibility and affordability, and enhance the digitalization of the economy to promote investment and secure our borders.
42. 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.
43. Mr. Speaker, Honourable Members, 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.
44. Mr. Speaker, Honourable Members, I have directed the Commissioner of Finance and the Director General/Chief Executive Officer of the Budget and Economic Planning Commission to provide explanatory details of the revenue and expenditure items as contained herein for your consideration.
M. Breakdown of Sectoral Allocation Estimates of the Fiscal Year 2025
Table 1: Sectoral Breakdown of Expenditure Estimates
S/NO
Sector
Amount (₦)
%
1
Administration
212,278,800,629.94
38.52
2
Economic
196,621,985,689.05
35.68
3
Law and Justice
26,697,411,452.11
4.84
4
Social
115,514,791,159.35
20.96
Total
550,112,988,930.45
100.00
Table 2: Further Sectoral Breakdown of Expenditure Estimates
S/NO
Sector
Amount (₦)
%
1
Education & Knowledge Management
82,516,948,339.57
15.00
2
Health & Human Services
82,516,948,339.57
15.00
3
Agriculture & Food Security
84,081,754,982.67
15.28
4
Law and Justice
26,697,411,452.11
4.85
5
Security
46,888,973,558.49
8.52
6
Infrastructure
110,022,597,786.09
20.00
7
Social Welfare
5,089,558,376.93
0.93
8
Commerce
58,724,704,845.08
10.68
9
Digital Economy
18,729,673,890.91
3.40
10
Others
34,844,417,359.02
6.33
Total
550,112,988,930.45
100.00
45. 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.
46. 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 centresto 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.
47. 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.
48. 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.
49. 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.
50. 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, whilealso 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.
51. 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.
52. 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.
53. 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 it is also about empowering small businesses and startups.
54. 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.
55. 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.
56. 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.
N. The Anticipated Challenges of the Fiscal Year 2025 Budget
57. Mr Speaker, Honourable Members, the implementation of the 2025 Budget is expected to come with its challenges, which include:
i. 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.
ii. Pressure on statutory receipts associated with managing outstanding domestic and foreign debts.
iii. 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.
iv. The garnishing of government accounts, which constrains governance and economic growth.
v. The narrowing gap between financing recurrent and capital votes.
vi. Insecurity within the Benue Valley that challenges the business climate.
O. Mitigating the Challenges of the Year 2025 Fiscal Budget
58. Mr. Speaker, Honourable Members, to mitigate these
challenges, we have undertaken the following measures:
i. Cautiously structuring the assumptions of the 2025 Budget projections with built-in buffers that will absorb unforeseen shocks to the system.
ii. Sustaining improved technology in tax collection and payroll systems to stem leakages.
iii. Implementing a smart staff and management register to enhance workers’ productivity, which can precipitate economic growth and bridge unforeseen shocks.
iv. Optimizing Official Development Assistance (ODA) to release funds for other critical development areas.
v. Sustaining the ALIA-CARES initiative to provide grants to farmers and Nano/small business holders as buffers against negative externalities.
vi. 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.
P. Conclusion
59. Mr. Speaker, Honourable Members, and my fellow Benue citizens, this government is open to constructive criticism, with the intent to meet the aspirations of the Benue people, who have entrusted her with this mandate.
60. Honourable Speaker, distinguished members of this auspicious assembly, and fellow citizens, 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.
61. 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.
62. 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.
63. Mr. Speaker, Honourable Members, and fellow Benue citizens, may I use this opportunity to wish you a Merry Christmas and a Prosperous 2025.
Thank you.
