The Benue State Authorities has introduced plans to spice up its internally generated income (IGR) to N3 billion month-to-month by 2025, aiming to fund the brand new minimal wage and clear excellent pensions.
Commissioner for Finance, Michael Oglegba, disclosed this in an interview with the Information Company of Nigeria (NAN) in Makurdi, noting that the state’s IGR had grown from N600–N700 million to about N2 billion month-to-month inside one 12 months below Governor Hyacinth Alia.
Oglegba emphasised that the purpose is to sustainably fund salaries and pensions with out delays.
“We have now a really formidable plan, which is to nonetheless develop the income to greater than N3 billion monthly. Doing so will allow us to pay salaries and pensions comfortably from the IGR, however this may require loads of work from us,” Oglegba said.
He added, “The goal this 12 months is to pay the brand new minimal wage with IGR and pay not solely core civil servants however pensioners as properly.”
Extra insights
The commissioner attributed the state’s enhance in internally generated income below the present administration to measures that addressed income leakages, relatively than the introduction of latest taxes. He famous that this strategy has allowed the state to persistently meet its wage obligations.
- Oglegba emphasised that whereas the federal government goals to keep away from inserting further burdens on the populace, it is going to intensify efforts to gather taxes from evaders utilizing all professional means accessible.
He additionally said that reaching the N3 billion month-to-month goal wouldn’t solely guarantee well timed wage funds but in addition allow the federal government to deal with different vital wants of its residents.
What it’s best to know
Benue State has encountered challenges in assembly its wage and pension obligations as a result of low internally generated income (IGR).
Nevertheless, as revealed by the Commissioner for Finance, Michael Oglegba, the present administration has made vital progress in boosting the state’s IGR. Over the course of a 12 months, IGR has elevated considerably, rising from between N600–N700 million to about N2 billion month-to-month.
To handle its monetary challenges and meet rising obligations, Benue is concentrating efforts on bettering tax assortment mechanisms and shutting income leakages.
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