The Rivers State government has proposed a N483.173 billion budget for 2022 which Nyesom Wike, the governor, said is aimed at achieving wealth creation, jobs, equity, social protection and economic inclusiveness.
While presenting the 2022 appropriation bill on Friday, Wike said his administration succeeded significantly in managing the resources of the state by building a strong economy relative to other states of the Federation.
“The 2022 budget is crafted within the framework of the State’s Medium Term Expenditure Framework, the State’s Economic Strategy Paper, the national economic outlook and the State’s economic growth projections coupled with the various development instruments and programmes,” Wike said.
The projected recurrent expenditure is N144.76 billion which represents about 30 percent of the total budget size for 2022 fiscal year. Projected estimate for capital expenditure is N314.9 billion which represents about 65 percent of the total budget size.
Rivers State’s 2022 budget assumes a crude oil price of $50 per barrel, national crude oil production estimates of 1.7 million barrels per day. It is also based on the assumption that the dollar will exchange at N410 and GDP will grow by 3 percent in the medium term and inflation rate of 13.5 percent.
“Although this is yet another ambitious projection given the challenges of the national economy, we believe we would be able to successfully implement the capital because it is backed by a concrete plan of action and within achievable limits,” Wike said.
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The government’s priorities according to the governor are agriculture, infrastructure, healthcare, education, social welfare, justice delivery, sports, youth and women empowerment and security.
Reflecting on how the 2021 budget of N448.6 billion performed, Wike said its implementation was very impressive with over eighty percent performance.
“As at the end of October 2021, total net revenue receipts was N391.325Bn or 87 percent overall performance on the revenue side.”
The governor urged the Supreme Court to expedite the matter of the Value Added Tax dispute between the Rivers State government and the Federal Government.
“In anticipation of our victory we are continuing with our plan to integrate the VAT into our mainstream tax operations and strengthen the capacity of the RSIRS to effectively administer this head of tax when the responsibility comes.”
Ikuinyi-Owaji Ibani, speaker of the Rivers State House of Assembly said : “No one is in doubt that what you have presented before the Rivers State House of Assembly is not realisable. It is a realistic and realisable budget and this has been your established pattern for the six years going seven years that you have mounted the leadership stage in the state.”
Wike said that Rivers State revenue is expected to hit N500 billion by end of 2021 going by N391 billion realized in the first nine months of the year.
