Rivers State Governor Siminalayi Fubara has given a group of members of the State House of Assembly a budget proposal worth ₦1.188 trillion for the fiscal year 2025.
The budget, called the “Budget of Inclusive Growth and Development,” has a 44:56% recurrent-to-capital expenditure ratio, with ₦462.25 billion set aside for recurring expenses and ₦678.08 billion for capital projects.
With the goal of improving public transport and infrastructure in the state, major allocations include more than N195 billion for the completion of current road projects and the start of new ones.
Governor Fubara is presenting the budget proposal to a faction headed by Speaker Victor Oko-Jumbo, amid continued political difficulties inside the state legislature.
The governor informed lawmakers that the budget is based on the presumptions of 1.8 million barrels of oil produced per day and a benchmark oil price of $80 per barrel.
Additional funding sources for the budget include N50 billion from the Federal Account Allocation Committee (FAAC), N264.4 billion from internally generated revenue, N18 billion from statutory allocation, N132.2 billion from mineral funds, N204.3 billion from value-added tax, N20 billion from excess crude account, and N27 billion in bank charge refunds. Furthermore, N250 billion is proposed for loans and bonds for the fiscal year 2025.
During his review of the 2024 budget performance, Mr. Fubara informed the lawmakers that the state government had received N340 billion in FAAC revenue out of the N800 billion that was proposed for the year. This is N57.5 billion more than what the state government had proposed as of November of this year.
In the same vein, the oil-rich Rivers produced N282 billion internally at that time, which was more than N51 billion more than the N231 billion allocated for the budget.
The legitimacy of the 2024 budget is currently under judicial review, adding complexity to the state’s fiscal planning.
