Benue State’s domestic debt has surged to N122.5 billion as of December 2024, marking a N7 billion increase from the N115.8 billion owed at the end of September 2024. This increase places Benue as the eighth most indebted state domestically, according to newly released data by the Debt Management Office (DMO).
Despite a slight reduction in foreign debt, which stands at $25.573 million, down from $26.4 million in June 2024, the state’s domestic debt continues to grow, raising concerns over its long-term fiscal sustainability. In total, Benue spent a staggering N7.4 billion on debt servicing in 2024, illustrating the strain that its high debt portfolio is placing on available state resources.
A Hobnob News review of the state’s budget performance reveals an additional point of concern: N706 million was spent on honorariums and sitting allowances between January and September 2024. This expenditure is equivalent to the budget for constructing 529 boreholes, sparking questions over the prioritization of government spending. Critics argue that such spending patterns reflect a misallocation of funds, especially amid the state’s growing debt burden.
“This continued borrowing and lavish spending on administrative expenses instead of development is unsustainable,” said an analyst from the Centre for Budget Transparency. “Benue must rethink its fiscal strategy if it is to avoid future economic crises.”
Meanwhile, the increasing reliance on loans is not unique to Benue State. In neighbouring Bauchi State, there has also been a rise in external debt, with the figure climbing from $185.2 million in June 2024 to $186.8 million by the end of December 2024. While Bauchi’s domestic debt dropped slightly from N145.2 billion in September 2024 to N143.9 billion by the year’s end, it remains the fifth most indebted state domestically.
Despite these rising debt figures, Bauchi State’s 2025 budget includes several controversial allocations that have sparked public outrage. These include N132 million for purchasing 32 chairs and 32 tables, each costing N2 million, and N440 million for 20 motor vehicles designated for principal officers, at a cost of N22 million per vehicle. Other questionable budget items include N118 million for two 32-seater buses and N16.8 million for seven laptops, raising concerns about potential financial mismanagement in the face of economic challenges.
Experts have called for a national reevaluation of the growing trend of states relying on loans to meet their budgetary needs, with many urging for more sustainable fiscal policies. The calls have become even louder as states like Benue and Bauchi continue to face mounting debt while spending on non-essential items.
States must prioritize economic development and social infrastructure rather than excessive administrative costs,” one economist remarked. “The focus should be on using limited resources for the benefit of the people, not on luxury purchases for government officials.
