By Mike Odiegwu and Rosemary Nwisi, Port Harcourt
Rivers State Governor Nyesom Wike yesterday presented proposed 2022 “budget of consolidation” of N483.1bn to the State House of Assembly for consideration.
Wike also urged the Supreme Court to expedite the trial of the Value Added Tax suit 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,” he said.
He said the policy thrust of the appropriation would focus on the state’s quest for greater economic growth and fiscal consolidation, enhancing jobs and wealth creation, building first-rate economic infrastructure, and achieving equity and social protection through poverty reduction and economic inclusiveness.
The governor said his administration succeeded significantly in managing the resources of the state by building a strong economy.
He said real tangible growth figures were also posted consistently in excess of five per cent each year, especially in the last two years.
He said: “Within Nigeria, our economy is not only stronger than 90 percent of the other States; it has continued to perform better than most others in terms of real economic growth, fiscal consolidation, debt-to-Gross Domestic Product ratio and Internal Revenue Generation.
“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 was N144.8bn, representing about 30 per cent of the total budget size for 2022 fiscal year.
But he said the projected estimates for capital expenditure was 314.9bn representing about 65 per cent of the total budget size.
The governor said that the estimates were pegged on the assumptions of the crude oil benchmark of USD 50 per barrel, National crude oil production estimates of 1.7million barrel per day; Currency exchange rate of N410 to the dollar; Gross Domestic Product growth rate of between 3 per cent for the medium term; and Inflation rate of 13.5 per cent.
He said: “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 explained that over half of the capital budget estimate was targeted at the economic and social sectors.
He listed the main items of the scheduled capital spending in the 2022 budget as agriculture, roads, bridges, healthcare, education, social welfare, justice delivery, sports, youth and women empowerment and human security.
In the justice sector, Wike said the sum of N2,256,928,022.80 had been earmarked as additional resources to improve efficiency of the sector.
The sum, he maintained, would fund the State Judiciary’s action plan for 2022 such as the construction of the new Magistrate Court’s Complex in Port Harcourt, the Rivers State Judicial Institute and the South-South Zonal Headquarters of the Federal Judicial Service Commission.
He said the 2022 budget was also expected to further strengthen the health sector to give citizens immediate access to affordable quality primary, secondary and tertiary healthcare services and support.
Reflecting on how the 2021 budget of N448.6B performed, Wike said its implementation was very impressive with over eighty percent performance.
He said: “As at end of October 2021, total net revenue was N391.3bn only which represents over 87 percent overall performance on the revenue side.”
He said the administration would complete the Abali flyover, Rumukalagbor flyover, Nkpolu flyover, Rumuepirikom flyover and Elimgbu-Rumuokrushe flyover; the dualization of Ogbunuabali road and the dualization of Eastern bypass road.
Others are the dualization of Egbema – Omoku road; Trans-Kalabari road (phase one), the dualization of Ahoada – Omoku road (phase one); the dualization of Bori-Kono road and the dualization of Chokocho – Okehi – Igbodo road among others.
The Speaker, Rivers State House of Assembly, Ikuinyi-Owaji Ibani said all the members of Rivers State of Assembly knew the exact projects and services that were provided by the Wike administration for the good of the state and its people.
“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,” he said.
