Gov Sim Fubara of Rivers State shocked the state when he ordered the demolition of the House of Assembly. He followed it up with the presentation of the 2024 budget at a makeshift location and signed it the next day. Below are some takeaways from the 2024 budget of Rivers state:
1. The budget of N800.4bn is Rivers’s first-ever budget where internally generated revenue leads.
2. It was laid before a house of 4 members and in the absence of 27 others, all due to political crisis and the defection of the lawmakers from PDP to APC
3. Recurrent is N361.6Bn; capital is N410.3Bn.
4. The planned recruitment of 10,000 people into the Civil service, might materialize with the increase from N210Bn to N361.6Bn in Recurrent allocation.
5. The state grossed N854Bn in 2023, showing that N800.4Bn is possible
6. Assumptions are on 1.5mbpd oil production below FG benchmark of 1.75mbpd; price of crude of $70 below FG’s benchmark of $77 per barrel.
7. Revenue projection for 2023 was N755.7Bn, including N200Bn supplementary budget. As of October’s end, the budget performance was 66% in revenue and 100% in recurrent expenditure.
8. Apart from IGR of N231.1Bn, Oil derivation follows with N145.5Bn; Statutory allocation N68.5Bn; and Value Added Tax N55.7Bn and Bond is N237Bn
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9. The budget is at risk due to political tension in the state.
10. Key expectations: the much-awaited promotion of economic development through the provision of critical infrastructure to support economic, business, and social activities and the creation of an enabling environment for private sector-led industrialization, job creation and poverty reduction.
11. To tackle socio-economic inequalities, access to quality and affordable education, healthcare, water, electricity, housing, social investments, gender empowerment and social inclusion.
12. Focus on the agricultural value chain, plus more road networks to interconnect the State, rehabilitate, equip, train and staff all dilapidated primary and secondary schools, build technical and vocational education centres, and allocate more funds to tertiary schools.
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13. To rehabilitate, equip and staff dilapidated primary healthcare facilities; restore, equip, and staff all our general hospitals; complete, equip and staff all five zonal hospitals; implement socially beneficial healthcare schemes; and introduce social investment schemes to fight poverty social exclusion, and gender discrimination. Also, spending more on the judiciary will boost law and order.
14. All loans to focus on economic ventures in areas of comparative economic advantage, including commercial agriculture, electricity generation, renewable energy, oil and gas, housing and sports development, skills, sports, and human capital development.
15. Threat: Political volatility, impeachment attempts.
