Michael Oglegba is the current commissioner of finance and economic planning in Benue State. He had his university education at the University of Jos and is currently pursuing his PhD at Bakke Graduate University, USA. Professionally, Oglegba is an entrepreneur with over 30 years of experience in finance, technology, and agriculture. In this interview, he speaks to Benjamin Agesan, BusinessDay’s correspondent, about critical economic issues in Nigeria. He also discusses the government’s efforts at tackling insecurity and returning the state to its ‘food basket’ status. … Excerpts
Benue is a major agrarian state in Nigeria. However, there is also a hike in prices of farm produce, which has brought hardship on the people. What’s the government doing about this?
Despite deliberate efforts by GovernorHyacinth Alia, like the provision of farm inputs, distribution of free fertiliser, and seedlings among them, there has been a hike in prices of food and non-food items in Benue State. This we acknowledge, and we are addressing it. t. First of all, this administration wants to establish a marketing board to regulate the prices of goods in the state. There is also a significant move to address food insecurity and improve the economic conditions of farmers in the state. The Benue Investment and Property Company (BIPC) is set to off-take goods produced by farmers across the state; it will become our hub for agro commodities. The concern is that external buyers are depleting local agro commodities, which not only affects cash retention within the state but also diminishes the value that farmers receive for their produce. With the support of local traders, the BIPC will establish dedicated grain hubs where off-takers can purchase directly, ensuring farmers receive value for their produce. We should be able to mop up farm produce and sell it directly to traders from outside the state.
This initiative will enforce standardised measurements and prompt payments upon delivery. The governor has also introduced a Warehouse Receipt System, which will ensure that these services are accessible throughout the state, guaranteeing that farmers receive fair value for their produce. This will protect our farmers and encourage them and drive our economy. We want farmers to know how much a unit of their produce costs. BIPC also plans to utilise Benue Sacs for agro commodities. This will allow for the tracking and management of farm produce. As this initiative takes shape, we remain optimistic that it will create a more favourable environment for agricultural trade and benefit both farmers and the broader communities in Benue State. There is a 2024 report by the Food and Agriculture Organisation, which revealed that 33.1 million people are projected to face food insecurity by 2025. We want to be part of the solution.
Also, Governor Alia, on Sunday, June 2nd, 2024, commissioned 33 new tractors and also disbursed N380n checks checks to community interest groups to undertake climate-smart agricultural activities in the state under the Community Revolving Fund (CRF) scheme of the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) scheme. The governor,, Alia,, has already paid one billion naira as a counterpart fund for the ACReSAL programme and is committed to providing the needed support for the programme to continue to thrive in Benue for the overall good of the people of the state.
ACReSAL was created as a new agency of government for the purpose of knowledge and skills transfer. Like many other states in the country, Benue shares numerous challenges, such as high poverty rates, a fragile environment, conflicts, degradation of natural resources, low agricultural productivity, and climate-related risks, saying addressing such challenges requires collective efforts. Addressing these multifaceted issues necessitated a concerted effort across various sectors. The ACReSAL project is specifically tailored to bolster institutions and implement those activities that mitigate the environmental impacts of climate change. This includes supporting efforts at landscape management, improving community livelihoods and resilience, and strengthening institutional frameworks. I’m sure you know the relationship between climate change and agricultural output. The governor himself has urged the beneficiaries of the Community Revolving Fund (CRF) to exercise diligence and prudence in managing the resources. He also assured that the 33 tractors commissioned will benefit over 33,000 households in the state annually.
For years, Benue has faced severe security threats. What are the government’s efforts to secure the state and return it as the food basket of the nation?
In tackling the security threats affecting agricultural activities in Benue State, Governor Alia has launched a programme to support internally displaced persons (IDPs) in the state. The drive, which is part of the Action Plan on Durable Solutions, is aimed at fostering IDPs to safely return to their ancestral homes. We estimate that the dry season farm project site located at Gboko Roadwill create sustainable results for over 500,000 displaced persons (IDPs) residing in the state. The programme includes the formation of 210 farmers cooperatives across all camps in the state, benefiting over 4,200 IDPs. The beneficiaries are expected to receive extensive training in rice, maize, cassava, and vegetable farming, covering all stages of production..
The program is expected to provide IDPs with access to land, subsidised inputs, and improved seedlings, as well as increased yields and revenue. The beneficiaries will also have guaranteed market access with government-controlled prices and integration into the larger value chain. Governor Alia’s administration is doing so much and is committed to restoring stability and dignity to affected communities and the need for collaborative efforts between the government and the local and international community. Before the governor assumed office, his dream was to see a day when every IDP returned to their ancestral home. His “Operation Plan” is a roadmap for long-term development rooted in the empowerment of displaced individuals.
Key initiatives under that plan include community dialogues to foster peace, land donations from traditional rulers for farming and relocation, and establishing cooperatives to support IDPs as they transit back to their homes. We already have success stories, such as the recent completion of the Transit Camp in Guma LGA, which houses over 4,000 dignified emergency shelters, improving living conditions for IDPs. To show commitment to the operationalisation of the Action Plan, this government has allocated 10 percent of the state budget for its implementation. We are also seeking support from various stakeholders, including the federal government, UN agencies, and local organisations, to ensure the plan succeeds, because it will benefit even the entire country, because food will be more available.
To ensure the return of trade, commerce, and investments, the Governor, on Saturday, 14th December, 2024,, launched the Benue State Civil Protection Guards (BSCPG). This is a 5,000-personnel security outfit, as well as a State Joint Task Force (SJTF) code-named “ANYAM NYOR,” comprising all the security apparatuses in the state and aimed at enhancing the safety of lives and property in the state. As you know, when translated properly, Anyam Nyôr simply means “The Lion is Here”. The establishment of ‘Anyam Nyôr’ is strategic, and it’s a critical response to the persistent security issues in Benue State, including communal clashes, banditry, killer herdsmen invasions, and other forms of criminality. By deploying 5,000 well-trained personnel, the BSCPG aims to complement existing security agencies, providing a robust framework for maintaining peace and order. By prioritising the safety of lives and property, Governor Alia’s administration is laying the foundation for economic growth, social cohesion, and improved quality of life for Benue citizens.
Recall that he has severally emphasised that security is a top priority of his administration. This is because he recognises that stability is essential for meaningful and sustainable development. The BSCPG was therefore established by law to work alongside conventional security agencies to ensure a comprehensive approach to tackling security challenges. To further bolster security efforts, the Governor donated 100 Hilux security vans and 600 special combatant motorcycles to facilitate the operations of the BSCPG and the Joint Security Task Force. He also has plans to recruit an additional 5,000nal 5,000 gallant and highly motivated, which will bring the total to 10,000, to further strengthen the state’s security framework. This is the highest ever single donation made to a security outfit of this nature in the history of Benue state.
‘Anyam Nyôr’ is designed to operate in synergy with existing security agencies, including the Nigerian Army, Navy, Police Force, Department of State Services, and the Nigerian Security and Civil Defence Corps. We believe that this collaborative approach will ensure a comprehensive and decisive response to security concerns across all local government areas in the state. Now to specifics, the primary objectives of ‘Anyam Nyôr’ include crime prevention and control, community engagement, support to law enforcement, and emergency response, among others. Having been equipped with mobility assets like security vans and motorcycles, this government is confident that ‘Anyam Nyôr’will respond promptly to emergencies. This will then foster quick response and mitigate the impact of security incidents. The initiative also sets a precedent for other states facing similar challenges. It has also demonstrated that with political will, community involvement, and strategic investment, it is possible to create effective security solutions tailored to local contexts.
Benue State is home to moribund companies like Yam Floor of Katsina-Ala, Tomato Factory Wayne, Orange Juice, Cassava Plant, Burnblinks Otukpo,, anders. Is the government worried about this, and are there any plans to resuscitate the state’s commerce and industry?
The-led administration is committed to reviving all moribund industries to improve the economic development of the state; this I can tell you. The governor has demonstrated this commitment by clearing the debt of one billion, eight hundred million naira, as he commissioned the Benue Investment and Property Company Limited (BIPC) bakery, water, emperor fertiliser, and motorcycle hire purchase scheme. For instance, the bakery, which is a state-of-the-facility,, will provide fresh, wholesome bread to citizens of Benue, healthy living, and catering needs of communities. The water factory will produce clean, affordable, and portable water and,, as well, help bridge the gap in availability of clean drinking water for Benue households.
The emperor fertiliser will be a game-hanger for farmers, providing them with high-quality fertiliser to boost crop yields and enhance agricultural productivity. The motorcycle hire purchase scheme is an innovative initiative of the company and will empower youths by providing them with means to generate income. The motorcycle hire purchase scheme will not only create jobs but also stimulate economic activities and enable young people to become productive members of society. These projects embody the administration’s steadfast commitment to creating jobs, stimulating economic activities, and improving the living standard of our people. That said, BIPC needs up to N7 billion to stabilise and drive the industrial revolution that his administration is currently working on to revamp and build a minimum of 10 industries within the first 4 years of the administration.
The Governor plans to hand over some of the moribund industries to the BIPC for revival and to champion economic development of the state. Like I mentioned, his administration has supported BIPC with an equity stake to float a brewery and establish a juice and nail factory as well. The nail factory is now producing and distributing nails across the state and beyond. Our hope is that BIPC will be able to create at least 200 jobs immediately and take our youths off the street. But the target is for it to create about one million jobs by the end of the Alia-led-led administration.
What’s the Benue state government’s take on local government autonomy, and how is it implementing that Supreme Court ruling?
Governor Alia promised local government full autonomy even before he became the governor. However, its full implementation depends on the federal government since it is the one to send money directly into the accounts of the local governments. The challenges delaying its full implementation are the State Universal Basic Education Board (SUBEB)B), primary healthcare sectors, and pensions boards, as well as primary and secondary schools, which are not part of the local government systems. Again, the debts owed either by the local governments must be cleared to avoid sanctions. The debt level of Benue State is currently three hundred and fifty billion naira, of which the localocal government’s share is one hundred and eighty billion naira. More than half of the debts are inherited, and the orders placed on the local government accounts are a huge threat. Governor Alia’s administration has given full blessings to the autonomy of the 23 local government areas in the state, with adequate plans to open up the rural areas to enable rural economies to thrive.
We have equally mapped out strategic projects and programmes or execution and implementation in all the local government areas. By the time the projects and programs are completed, the checkered history of the rural areas in the state will be completely reversed. The pivotal role the local government system plays in the development process of the nation cannot be overemphasised. For instance, to intensify efforts at increasing the internally generated revenue and boost capacity to provide for the welfare of the people, we need vibrant local governments. Therefore, we welcome state autonomy one hundred percent, and we are implementing it.
We have seen increased FAAC allocation since last year on the back of exchange rate gains and fuel subsidy removal. How has the Benue State government utilised this windfall to impact the people?
In the wake of fuel subsidy removal by President Bola Tinubu, the monthly disbursement to the three tiers of government by the Federal Account Allocation Committee (FAAC) increased significantly. Based on the statutory sharing formula, the federal government receives 52.68 percent of the total sum, while the states and local government areas (LGAs) receive 26.72 percent and 20.6 percent, respectively.
The monthly allocation, particularly to states and local governments, is meant to fast-track the execution of viable economic and social infrastructure development projects at the grassroots. The allocation, which is readily available monthly, is expected to cushion the impact of the economic crunch and promote people-oriented programs to improve the overall well-being of the people. In Benue State, we used this great opportunity to clear salary arrears, pensions, and gratuity, as well as clear owed debts that were inherited from the previous administration. Agriculture has greatly improved as a result of the effective use of these funds.
Part of the strategies to also ease the hardship of the people is through policies like N-G Cares, also known as “Alia Cares.” Alia Cares aims to bridge the gap between the rich and the poor so that every Benue indigene can have access to basic needs like food, clothing, and shelter. The program’s primary focus is on the most vulnerable members of society, particularly the poorest of the poor. To achieve this, Alia Cares uses the State Operations Coordinating Unit (SOCU) to create a social register, which helps identify and select beneficiaries. As you may know, Alia Cares is implemented in three phases, with three result areas that provide support for livelihood. The first result area, DLI1.1, targets the poorest of the poor who are sick and aged. The second, DLI1.2, focuses on individuals between 18 and 45 years old who can perform tasks like cleaning government offices and community areas for two hours daily. After a certain period, they receive a stipend of ₦10,000 to support their livelihood. The third result area, DLI1.3, recently provided beneficiaries with ₦150,000. This area focuses on individuals involved in small businesses. Additionally, DLI1.4 covers basic services, micro-projects, and community development projects. Communities can decide on the projects they need, and Alia Cares executes them. Examples of such projects include drilling boreholes and constructing classroom blocks. The DLI1.4 provides farm inputs to farmers, enabling them to support their livelihood after harvest. To reduce post-harvest losses, Alia Cares is structured to offer processing machines for tomatoes and cassava to produce garri, adding value to farmers’ produce.
Out of Benue State’s 2025 budget of N550bn, 90% has been earmarked for capital expenditure. How will it be utilised for meaningful growth and development in the state?
The governor presented the sum of N550.1bn as the 2025 appropriation bill to the Benue State House of Assembly for consideration and passage into law. Out of the total budget size, N175.4 billion is for recurrent expenditure while N374.7 billion is for capital expenditure. The total estimate represented a 47.5 percent increment over the 2024 revised and approved figure of N373 billion. The appropriation bill tagged “Budget of Human Capital Development, Food Security, and Digital Economy” was to consolidate the gains made in 2024. The proposed recurrent expenditure of N175.4 billion was 13.55 percent higher than the previous year, while capital represents a 71.5 percent increase from the 2024 revised capital expenditure. 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 plenty, and where the digital economy opens new frontiers of opportunity for all. The intention of the government is to stay within the limits of its recurring revenue to build the state without accruing unnecessary debts for generations unborn. The 2025 budget is a deficit one; I’m sure you are aware. It proposed a borrowing plan of a conservative sum of N26bn, representing a modest 4.7 percent of the proposed aggregate expenditure for 2025. This is lower than the state’s debt-to-GDP ratio of 8.2 percent, which is within the benchmark of the 25 percent debt sustainability threshold. Despite these favourable debt ratios, I want to reiterate that borrowing will only be considered as a last resort and for regenerative investment purposes. The problem of Internally Displaced Persons (IDPs) remains a challenge, even though we have reasonably improved their living conditions. The Bureau of International Cooperation and Development has elicited substantial grants from donors, totalling N85bn.
What specific financial challenges confront the state, and how is the government navigating them?
For this current administration, the first financial challenge is the inherited debts of the previous administrations. As I earlier mentioned, Benue State debts have accrued to N350bn. Monies meant for developmental projects are being used to settle debts like salaries and gratuities as well as pensions and local government debts. Illegal revenue checkpoints have seriously affected the financial stability of the state; hence, buyers run to other states instead of Benue State to transact business. This has denied us the needed revenue. Another financial challenge is the present insecurity; Benue indigenes have been sent out of their ancestral homes. This has led to the drop in agricultural production and the cut down of business activities, which would have boosted the economic growth of the state.
That said, the tax policies of the current administration are highly friendly. And this is deliberate to woo investors into the state and provide job opportunities for the Benue populace. In line with this, the government is addressing the issues of insecurity head-on. To create a conducive environment for investors, the administration is equally offering a tax holiday to investors who are willing to invest or are already doing business in the state. Our commitment is a favourable business environment, and we will spare no effort to ensure that Benue State becomes the preferred investment destination for all investors.
What’s your advice for Benue citizens, especially the youth, about embracing agribusiness?
To the Benue populace, I urge them to make use of the opportunities made available by the government and engage in agribusiness because it remains a cornerstone of economic development, particularly for our state, with its rich agricultural landscape and immense potential. Globally, the demand for high-quality agricultural products continues to surge, driven by rising populations, increasing health consciousness, and a growing preference for healthy, hygienically processed, and value-added food products. This presents a unique opportunity for Benue State to position itself as a significant player in the global agribusiness market. The global agricultural sector is increasingly shifting towards value addition, as consumers seek nutritious and convenient food options. This trend opens avenues for Benue farmers to explore new markets for processed goods such as pharmaceutical-grade yam flour, fruit concentrates, and other agro-based products and byproducts. By tapping into these global opportunities, the state can enhance its agricultural output and boost revenue streams significantly. This is my candid advice.
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