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Benue State Govt spends N800 million monthly on servicing debts

The Benue Government on Saturday said it currently spends over N800 million monthly on servicing of debts.
Mr David Olofu, the state Commissioner for Finance, who disclosed this to newsmen in Makurdi explained that the state debt profile was over N55 billion, including the federal government bailout fund, apart from loans of local governments.
Olofu said that a great percentage of the loans and bonds were collected by previous administrations starting from 1980.
“Servicing of loans and bonds is part of our inherited responsibility as a government. So far, we are servicing six domestic loans, bonds and few foreign loans.
“We are servicing the N13billion bond and N4.9billion bond that the previous administration collected.
“We are also servicing the N10billion UBA loan, N12.5billion state bailout facility, and N10b infrastructural loan.“
“Others include the N5.5billion counterpart funding loan and other foreign loans obtained by the previous administrations.
“As we speak, we are spending over N800 million monthly on servicing of local debt (loans and bonds) in the state, including the N12.5 billion bailout facility recently received by 28 states of the federation”.
He said that despite the harsh economic realities in the state, the government had no option than to fulfill this responsibility to the banks monthly.

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