It is a fact that Benue state is a Non Viable state and faces a bleak future.
The development and future of Benue state just like many other states is dependent on the central Government who in turn is dependent on revenue from oil sales.
According to records from available data, in the last 10 years, 93% of Benue state earning comes from the monthly federal allocations, while its IGR accounts for only 7% as 2017
Now assuming oil prices which the country so much depends on were to crash again (and it will), how will the state manage the situation?
The oil prices are now favorable but the Central Bank has issued a warning calling on the states and the federal Government to save for the ‘rainy days’.
The Benue State IGR?
The state’s internally generated revenue is improving according to the state’s 2017 report But will it be enough to meet the state funding needs?
Is there any clear establish strategy for revenue diversification to ensure that the state IGR accounts for 50% of its total revenue earning at any particular period of time in the nearest future?
Revenue diversification requires a long-term strategy that includes planning, ongoing cultivation and plenty of patience. And most importantly a visionary, credible and dedicated leadership with the political will to drive it to fruition.
Has the state been able to manage the resources it has gotten in the last 10 years (about N1trillion) so far to build the structures can enable the state economy to grow and boost its internal generate revenue and develop other sources of funds away from the federal allocations?
The answer is sadly no as the state has a range of deteriorating social and economic infrastructures that can drive commerce in the state.
The implication of Benue state primary source of revenue entirely dependening on how much the federal governments gives the state through the federal allocation sents a clear warning- The economy future of Benue state is in serious jeopardy with grave consequence already the early signs are already here.
Benue ! the lesson is age-old: Don’t put all of your funding eggs in one basket.