Benue State, famously nicknamed the “Food Basket of the Nation,” isn’t just known for producing yam, rice, and soybeans in abundance — it’s also a battleground where politics, finance, and grassroots survival meet. Nestled in Nigeria’s North-Central region, Benue wears its agricultural crown with pride, but behind the scenes, there's a deeper financial story playing out in 2025.
So, what’s really happening with Benue State's share of federal allocation in 2025? And how is the government under Governor Hyacinth Alia navigating the tricky waters of dependency, development, and digital transformation?
Grab a cup of zobo and let’s break it down — not in boring government-speak, but in everyday language.
The Backbone of Nigerian Budgets: FAAC and the Allocation Formula
Before we zoom into Benue, let’s understand how Nigeria’s money pot is shared.
The Federation Account Allocation Committee (FAAC) is the big boss when it comes to slicing the national revenue cake. Every month, money earned from oil sales, VAT, customs duties, and company taxes is pooled and shared among the federal, state, and local governments.
Here’s how the sharing formula works:
-
Federal Government: 52.68%
-
State Governments (36 states): 26.72%
-
Local Governments (774 LGAs): 20.60%
Simple, right? But here’s the twist — most Nigerian states, Benue included, don’t have a strong internal revenue system. So they rely heavily on whatever crumbs (or slices) come from Abuja.
Benue’s Share of the Federal Pie in 2025
Let’s talk figures. In 2025, Nigeria saw one of its largest monthly disbursements — a whopping ₦2.32 trillion in June alone — thanks to improved oil prices and better tax collections. While Benue’s exact portion wasn’t loudly broadcast, its allocation was based on a mix of population, land mass, revenue effort, and other FAAC metrics.
But the truth is, these funds are lifeblood. They help pay workers, build roads, run schools, and stock hospitals. Without them, the state machinery could grind to a halt.
Still, there’s growing concern: Is Benue surviving or thriving?
The Big Picture: Benue’s 2025 Budget
Now here’s where things get interesting.
Governor Alia unveiled a bold 2025 budget worth ₦550.11 billion — a huge leap from 2024. This budget wasn’t just numbers on paper; it was a declaration of intent. A plan to modernize the state, strengthen institutions, and plant seeds for future growth.
Budget Breakdown:
-
Capital Expenditure: ₦357.6 billion (~65%)
-
Recurrent Expenditure: ₦192.5 billion (~35%)
-
Borrowing: ₦26.05 billion to bridge the deficit gap
The theme? “Budget of Human Capital Development, Food Security, and Digital Economy.”
It’s like the state is saying: “We’re not just farmers. We’re future-focused.”
Sectoral Highlights: Where the Money’s Going
Benue isn’t playing games this year. Let’s see where the cash is headed.
| Sector | Budget (₦ Billion) | % of Total Budget |
| Infrastructure | 110 | 20% |
| Agriculture & Food Security | 84.08 | 15.3% |
| Education | 82.52 | 15% |
| Health | 82.52 | 15% |
| Security | 47 | 8% |
| Commerce & Investment | 59 | ~10% |
| Digital Economy | 16.5–19 | 3% |
In simpler terms: roads will be built, classrooms repaired, hospitals equipped, and farmlands made more productive. Plus, a new faculty of engineering will rise at Benue State University. The state is also doubling down on social protection and youth development programs.
Revenue Sources: Still Heavily Reliant on Abuja
Despite the fancy budget plans, Benue still leans heavily on FAAC. Here’s what the revenue mix looks like:
1. Statutory Allocation
This is the monthly bread and butter from the federal purse. Benue’s biggest income stream.
2. Value Added Tax (VAT)
The state gets a share from the national VAT pool. Not huge, but helpful.
3. Internally Generated Revenue (IGR)
This includes taxes, fines, licenses, market fees — basically, money made within the state. Unfortunately, it’s one of the lowest in the country. But the government has big plans to increase it by 300%! Ambitious? Yes. Impossible? Not really, with proper systems in place.
4. Grants and Donations
Think World Bank, NGOs, and federal special intervention funds. These often support specific projects like water, education, or health initiatives.
The Challenges That Refuse to Go Away
With all these big dreams, Benue is still weighed down by some stubborn problems:
❌ Overdependence on Federal Allocation
One oil crisis in the Niger Delta and… boom, allocations drop. That’s a dangerous position to be in.
❌ Weak Internal Revenue Base
People don’t like paying taxes. The informal sector is huge. And digital revenue collection is still a work-in-progress.
❌ Security Woes
The herder-farmer crisis is more than just a headline — it disrupts farming, causes food shortages, and scares investors away.
❌ Infrastructure Gaps
From bad roads to leaking roofs in schools, the list is long. And money alone won’t fix it without effective execution.
Opportunities That Could Transform the State
Benue isn’t helpless. In fact, it has plenty of low-hanging fruits — if the government and people are ready to harvest them.
Agribusiness Revolution
Why sell raw yam when you can sell packaged yam flour? Benue can attract agro-industrial investors to create jobs and boost IGR.
Cultural & Eco-Tourism
Tiv and Idoma festivals, river banks, traditional cuisine — with proper packaging, Benue could become a cultural tourism hotspot.
Renewable Energy Projects
Imagine rural areas powered by solar farms and small hydro dams. Clean, sustainable, and investment-worthy.
Public-Private Partnerships (PPPs)
Roads, markets, schools — the government doesn’t have to do it all. Collaborating with the private sector can speed up development.
Conclusion
Benue’s 2025 budget is bold. It’s not just about spending money — it’s about rewriting the state’s story. A story where yam isn’t the only thing the state exports. Where young people don’t run to Lagos to chase their dreams. Where rural communities get light, water, and decent roads.
But to get there, the state must confront its hard truths: break free from dependency, boost its internal revenue, invest in security, and govern with transparency.
As Governor Alia pushes forward, the question remains:
Can Benue stop being just the "Food Basket of the Nation" and become Nigeria’s next economic success story?
Only time — and policy — will tell.
