The Benue State Government has announced plans to boost its internally generated revenue (IGR) to N3 billion monthly by 2025, aiming to fund the new minimum wage and clear outstanding pensions.
Commissioner for Finance, Michael Oglegba, disclosed this in an interview with the News Agency of Nigeria (NAN) in Makurdi, noting that the state’s IGR had grown from N600–N700 million to about N2 billion monthly within one year under Governor Hyacinth Alia.
Oglegba emphasized that the goal is to sustainably fund salaries and pensions without delays.
“We have a very ambitious plan, which is to still grow the revenue to more than N3 billion per month. Doing so will enable us to pay salaries and pensions comfortably from the IGR, but this would require a lot of work from us,” Oglegba stated.
He added, “The target this year is to pay the new minimum wage with IGR and pay not only core civil servants but pensioners as well.”
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The commissioner attributed the state’s increase in internally generated revenue under the current administration to measures that addressed revenue leakages, rather than the introduction of new taxes. He noted that this approach has allowed the state to consistently meet its salary obligations.
- Oglegba emphasized that while the government aims to avoid placing additional burdens on the populace, it will intensify efforts to collect taxes from evaders using all legitimate means available.
He also stated that reaching the N3 billion monthly target would not only ensure timely salary payments but also enable the government to address other critical needs of its citizens.
What you should know
Benue State has encountered challenges in meeting its salary and pension obligations due to low internally generated revenue (IGR).
However, as revealed by the Commissioner for Finance, Michael Oglegba, the current administration has made significant progress in boosting the state’s IGR. Over the course of a year, IGR has increased substantially, rising from between N600–N700 million to about N2 billion monthly.
- In July 2024, the Nigerian Senate approved a bill to raise the national minimum wage from N30,000 to N70,000, with a reduced review timeline of three years. While this change has been approved at the national level, many states, including Benue, have not yet fully implemented the new wage structure.
To address its financial challenges and meet growing obligations, Benue is concentrating efforts on improving tax collection mechanisms and closing revenue leakages.
