Benues opaque Budget

By Nasir Ahmad El-Rufai

we continue our analysis of
the budgets of the state
governments with the North-
Central State of Benue.
Bordered by Nasarawa state
to the north, Taraba state to
the East, Ebonyi and Cross
River states to the south, and
Kogi state to the west, Benue
state was created in February
1976, when Benue-Plateau
State was separated into
Benue and Plateau states by
the Murtala-Obasanjo
administration.
Benue state is acclaimed to
be the nation’s food basket
because of its rich and
diverse agricultural
endowments which include
yam, rice, beans, cassava,
potatoes, soybeans, sorghum,
millet and coco yam.
The state produces over 70%
of Nigeria’s Soya-beans and
is home to one of the longest
river systems in the country –
River Benue, which has the
potential for viable fishing
and tourism industries
complete with festivals similar
to the one in Argungu. The
river has the potential to
generate electricity, to
support dry season farming
through irrigation and
improved transportation
through inland waterways.
There are also proven
reserves of solid minerals like
Limestone, Gypsum,
Anhydride, Kaolin, Salt, Lead
and Zinc, Clay, Coal, Calcite,
Gemstones and Magnetite.
The Benue Basin has proven
quantities of natural gas and
there is the likelihood of
crude oil as well. The state
has many tourism assets like
Ushongo Hills, Ikwe Holiday
Resort, Enemabia Warm
Springs, Dajo Pottery,mTiv
Anger Weavers and many
traditional festivals. The
traditional music and dances
of the state attract thousands
of Nigerians and foreigners,
with potentials for significant
development.
With a land mass of 34,059
sq km, Benue State had a
population of 4,223,641 in
2006 – now estimated at
nearly five million – a little
above the population of
Congo and more than twice
the population of Botswana.
Abdullahi Shelleng was the
first military governor of the
state (March-1976-July 1978).
Aper Aku was the first
democratically elected
governor under the National
Party of Nigeria and served
from October 1979 to
December 1983. More recent
governors are George Akume
(May 1999- May 2007) and
Gabriel Suswan. Suswan
holds an LL.B from the
university of Lagos, a masters
degrees in Law from the
University of Jos, and in
public administration from
the University of Abuja. He
was a two-time member of
the House of Representatives,
and began his first term as
governor in May 2007.
According to the NBS poverty
profile 2012 based on data
up to 2010, of the population
of the North Central zone,
61.9% is relatively poor,
57.4% is absolutely poor,
38.6% is food poor – an irony
indeed for a zone with such
generous agricultural
endowments. Benue’s
poverty incidence is high at
36%, which means that more
than one out of every three
persons is poor: as opposed
to one in seven for Lagos,
and more than half – 58% in
Yobe state. Benue’s
unemployed population is a
whopping 25.4 % or more
than one in every four
working age person is
unemployed, as opposed to
neighboring Plateau’s 14%
and FCT’s 13%, and above
the national average of
21.1%. Benue States has one
of the highest incidences of
HIV infections in the country,
accounting for about one out
of every eight infections
nationally.
So what should Benue State
be doing in the face of these
endowments and challenges?
Education is one of the key
indices to measure state
government effectiveness. It
should be investing a large
percentage of its budget on
improving public education.
The government must deliver
affordable and quality
healthcare. It should also
invest in key infrastructure to
attract investors to its
agricultural, fishing, tourism
and mining sectors. It should
address the needs of its
farmers for title to land, rural
roads, storage facilities and
Argo-processing capacity. Are
the authorities doing that?
We were unable to obtain the
detailed budget of Benue
State anywhere. Even
members of state assembly
contacted were reluctant to
provide more than sectoral
summaries. Gabriel Suswan
had on the 22nd December
2011 presented a budget of
N105.5 billion to the state
house of assembly for the
2012 fiscal year. The budget
would be financed with
N59.9 billion from FAAC,
N15.2 billion as IGR and
N30.3 billion from other
sources – meaning loans and
grants-in-aid. Typically Benue
received about N40 billion
every year from FAAC, so the
amount expected this year is
a bit optimistic. However,
after review by the house of
assembly, the budget figure
was scaled up by N7 billion,
bringing the total figure to
N112 billion. In terms of
federal allocations between
1999 and 2008, of the total
N3.7 trillion allocation that
has been distributed amongst
the 19 Northern states,
Benue received N203.4
billion, making it the 6th
largest beneficiary.
Of the total budget sum, N58
billion amounting to 52% is
earmarked for recurrent
expenditure, and N54 billion,
about 48% is set aside for
capital expenditure. This
means that this rural state is
spending much more on
running the government than
securing the future of its
citizens. It should scale
capital investment to closer to
70%, and reduce recurrent
spending accordingly.
The sectoral breakdown of
the budget shows the
following structure;
N34,406,400,000 (30.72%)
for the Works and Transport,
N14,336,000,000 (12.8 %)
for the Finance ministry pay
of loans and set up effective
revenue generation
mechanisms; 4.82% or
N5,376,000,000 for
Agriculture, Water Resources
got 9.1% or
N10,192,000,000. The Rural
Development ministry was
allocated N11,670,400,000 or
10.42%, and the Health
allocated N4,592,000,000 or
4.01%. Judging from the
distribution if the budget,
these figures alone, one is
inclined to question the
spending priorities of the
Suswan administration.
The largest allocation of
N34,406,400,000 or 30.72%
of the budget is set aside for
the works and transport. In
addition, the state house of
assembly approved a Fixed
Rate Development Bond Issue
2011/2016 of N13 billion for
the state. Listed in March
2011, the five-year, 14%
coupon rate bond proceeds
are for the completion of
roads and other projects like
water supply in Markurdi,
Otobi and Katsina-Ala.
Questions remain though –
how much of the N34.4
billion is from the proceeds
of the N13 billion bond that
will be need to be paid back
over a five year period? How
much of the N13 billion bond
was spent so far, and what
was it spent on? Venue
citizens probably know these
answers.
It is indeed a paradox that
while Benue state is endowed
with one of Nigeria’s biggest
rivers with very good water
traffic, the citizens live in
perpetual water shortage.
Regarding River Benue, one
would wonder why the state
isn’t exploring its hydro
tourism/hydro electric
potentials; starting up cruises
or exploiting its reputation as
a major Nigerian river
towards developing water
transport or building a whole
sporting industry, water
games and all. Looking at the
figure of N10,192,000,000
(9.1%) allocated to Water
Resources, the first question
that should come to mind is,
how much of the N13 billion
bond was specifically spent
on water projects?. How
much of these funds are
directed into the areas listed?
As a state with abundant
agricultural potentials – land
that is very fertile and about
80% of the state’s population
is involved directly or
indirectly in sustenance
farming, wholistic ficus on
agricultural production is the
key to the state’s future.
Sadly, Benue has a reputation
for wasteful agriculture as
the state lacks basic storage
infrastructure. Agriculture is
not yet mechanized beyond
sustenance such that it will
amount significantly upon the
states IGR. A careful state
endowment and value chain
study, with investments in
key areas will enable Benue
feed most of Nigeria’s
population. That is one area
for the attention of the
authorities
On the bright side, doing
business in Benue is relatively
easy. Amongst the 36 states
and the FCT, Benue was
ranked 10 in the ease of
doing business, with 8
procedures that will span a
minimum of 36 days, 6
places behind its Plateau
counterpart. Plateau State’s
doing business ranking is
number 4, with 8 procedures
over a 31 day period. This
relatively easy business
climate is doing well for
Benue, considering that in
2010 the states combined
IGR was N6.8 billion, in 2011
it increased to N11 billion,
and in 2012, there is an IGR
projection of N15.2 billion.
The state deserves some
credit on its attractiveness to
investors, in 2010, the Benue
Cement Company merged
into the Dangote group,
thereby increasing its
capacity in cement
production, in 2011, the
Transnational Corporation of
Nigeria (TRANSCORP)
subsidiary, Terago Limited,
leased, renovated and
recommissioned the Benue
Pioneer Fruit Juice
Concentrates Company for 10
years at the cost of N1
billion. Also in 2011, an MoU
for the revitalization and
management of the near
moribund Taraku Oil Mills
was signed. Interestingly all
these industries were
established during the life of
the earlier administration of
Governor Aper Aku.
Educationally, Benue is a
disadvantaged state. In the
2008 academic year, 41,410
Benue students sat for WAEC,
and only 1,879 or 4.5%
scored 5 credits including
Maths and English, the same
year, only 389 students from
Benue State were admitted
to Nigerian Universities,
compared with 3,569 and
4,030 for Edo and Enugu
states – the leading
performers. This trend
should be of concern,
especially in a times such as
this, when a core focus of
government should be to
reduce its unemployed
population so they do not
constitute a threat to society.
Another worrisome aspect of
the budget is the allocation to
health: an allocation of 4% or
N4.5 billion of the entire
budget sum when health
should be a priority sector
for the state. The special
adviser to the Benue state
governor on HIV/AIDS and
other communicable diseases
said that there are no fewer
than 400,000 persons in the
state who are carriers of the
disease, out of three million
infected Nigerians.
Considering this situation,
does Benue aim to safeguard
the health of its citizens with
this level of spending?
Maybe, laudable is the fact
that the state government
renovated all general
hospitals in the state, has
partnered with Essential
Pharma to curb the menace
of fake drugs within the
state, and is one of the few
states to upgrade its Action
Committee on Aids to an Aids
Control Agency. There is
need to do more in both
preventive and curative
healthcare provisions.
Benue’s recurrent budget is
more than three times its
IGR. It is therefore incapable
of standing on it own and is
one of the “parastatal states”
that rely on monthly FAAC
hand-outs to exist.
Interestingly, in spite of this,
there is a strong movement
for the creation of another
state out of Benue for the
benefit of the political elite
Idoma ethnic group! The
government is doing much
better on the IGR front than
most states in the country,
but must scale down the size
and cost of its
administration. It is investing
aggressively in transport
infrastructure and that is
commendable but more
investments are needed in
education, healthcare and
agriculture. Tourism, mining
and hydroelectricity are all
areas that Benue can focus
to deepen its comparative
advantages within the
Nigerian nation. Until these
are addressed and urgently
too, the people of Benue
should be looking at voting
differently in the next
election.
Two Sad Events
This week started with a
depressing note for me, and
got worse yesterday with the
bombing of ThisDay’s offices
in Abuja and Kaduna. On
Monday, the sensibilities of
Nigerians were challenged by
a motley crowd of hired
thugs protesting AGAINST the
excellent report of the Farouk
Lawan Committee on Fuel
Subsidy. I was depressed.
Have we become this bad
that people can shamelessly
support what is wrong? Do
these protesters have
parents? Have we lost all our
values to illicit money and
now ruled completely by
corruption?
As I was struggling with
these, learning that Boko
Haram has targeted the
offices of ThisDay worsened
my state of mind. How can
those that report news be
the problem or the target of
anyone? How can anyone
justify the killing of another?
Where is our sense of
community? thee attacks
must be condemned by all
well-meaning Nigerians. We
call on the authorities to rise
up beyond the usual
platitudes and speeches and
protect the lives and property
of our citizens. May the souls
of the departed rest in peace.
Amen.

#CONSENSUS 2015