The Benue State Government has announced savings of N1.2 billion from its monthly wage bill after conducting a payroll audit. Speaking to reporters in Makurdi on Thursday, Mr. Michael Oglegba, the Commissioner for Finance and Budget Planning, emphasized that the figures presented by the previous administration were unrealistic. This was due to the fact that the federal allocation for the state typically ranged between N6.5 billion and N7 billion. Oglegba pointed out that the former administration's figures implied that the entire monthly federal allocation was insufficient to cover the state's recurring expenses.

"When we assumed office, we established a team to thoroughly examine the state's wage bill. Remarkably, I led this initiative.

Our approach involved a comprehensive review starting with the state's civil service payroll, extending to the State Universal Basic Education Board, the Teaching Service Board, and the local government councils. As a result of this effort, there has been a significant reduction in the wage bill.

For context, if the previous administration asserted that the wage bill amounted to N7 billion while the income ranged between N6.5 billion and N7 billion, it essentially meant that the budget was already stretched to its limits before the funds even arrived."

This situation meant that they were incapable of covering the state's financial obligations, including monthly recurring expenses, leaving no funds available for essential capital projects. That's the implication," he stated.

Furthermore, Oglegba clarified, "When you hear Alia mention N1.2 billion, it signifies the current state of the wage bill at the time of our discussion because the payroll audit is still ongoing. We haven't concluded yet. Therefore, I cannot provide an exact figure at this moment since it's an ongoing process, and the wage bill continues to decrease month by month."

The commissioner also noted that the government managed to settle five months' worth of workers' salaries within the first four months of the administration. "Now, salaries are consistently disbursed on the 25th day of each month, even before receiving the federal allocation," he added.

Oglegba emphasized that the Alia administration achieved a great deal in its first five months in office without resorting to borrowing to fulfill financial obligations, including salary payments and contractor settlements.

"We have established a financial cushion that allows us to easily meet monthly worker salaries. As you may have observed, we disburse salaries prior to the arrival of the federal allocation."

"The federal allocations are typically received between the 25th and 28th of each month, and our practice is to disburse salaries on the 25th of every month.

This demonstrates that we secure the funds required for salary payments prior to the arrival of the federal allocation. It's essential to emphasize that the monthly Internally Generated Revenue (IGR) alone doesn't suffice for covering the payroll," he explained.

He further mentioned that even with the removal of the fuel subsidy by the Federal Government, the state's federal allocation had not shown any substantial improvement.

The state government, he emphasized, is adopting prudent measures to reduce the operational expenses of the government.

"The federal allocation hasn't seen a significant improvement. Some might assume that the removal of the subsidy has led to a substantial increase, perhaps even tripling of the funds, but that's not the case. We continue to receive amounts within the usual range, occasionally around N7 billion, although it's not a fixed figure.

In fact, it was hovering around the six-point-something billion mark until last month when commissioners of finance across the country voiced their concerns, resulting in a marginal increase of one billion naira. So, we're still operating within the range we've been accustomed to in the past.

What sets us apart now is our commitment to minimizing the cost of government operations. Whenever we identify new opportunities to save government funds, we act on them."

"For instance, since the 1980s, both the State Secretariat and Government House have relied on a 1100 KVA power line. It took Alia's entry into government to upgrade it to a 3300 KVA power line, resulting in increased power supply.

This transformation translates into a significant reduction in the monthly expenditure on diesel from N35 million to a mere N10 million for the electricity bill.

Moreover, the funds previously allocated for generator repairs and maintenance can now be directed towards other vital endeavors. These astute decisions are being made across various government sectors, resulting in cost savings," he remarked.

He further explained that through prudent resource management, the state government has initiated several projects, including the construction of 16 township roads in Makurdi, the installation of street lights, the rehabilitation and modernization of the state Assembly Complex, and the refurbishment of the state secretariat, among other initiatives.