The Sole Administrator of Rivers State, Ibok Ete Ibas, on Thursday, defended the sum of N1.846trillion as aggregate projected expenditure for the state in the 2025 fiscal year before the Senate ad-hoc Committee on Oversight of Emergency Rule in Rivers State.
This represents about N400billion of about 15% increase in the amount presented to the National Assembly by Tinubu which is N1.48 trillion.
Ibas said the increase was as a result of incorporating first-quarter expenditure undertaken by the previous administration into the amount proposed by President Bola Ahmed Tinubu.
Recall that President Tinubu had in March declared a state of emergency in Rivers state following intractable political crisis in the state and appointed Ibas as the sole administrator.
By virtue of the emergency rule, the National Assembly was made to assume the lawmaking duties for the state for the period of the emergency rule which is six months.
Also, the Abuja division of the Court of Appeal, had on October 11, 2024, upheld the judgement of a Federal High Court, which voided the N800billion Rivers State 2024 Budget passed by five members of the State House of Assembly.
Before the Adhoc Committee resolved into a closed session, its Chairman, Senator Opeyemi Bamidele said an aggregate sum of N1.48 trillion was recently presented to the National Assembly as the proposed 2025 budget for Rivers state.
He said compared to N793.457 billion appropriated for the 2024 fiscal year in the state, the 2025 budget represents an increase of 86.63%.
According to him, “the structure of the 2025 budget clearly showed that more funds are budgeted for capital projects. Of the total budget, therefore, N1.072 trillion was budgeted for capital expenditure alone.
“This accounts for about 72.43% of the total expenditure. Also, a total sum of N408.412 billion is earmarked for recurrent expenditure, invariably accounting for 27.56% of the aggregate spending.
“This proposal, as expected, clearly maps out the sources of revenue for the purpose of funding all the programmes, projects and schemes that have been identified for execution.
“The details of revenue sources are hereunder spelt out: Balance Sheet – N220.843 billion, FAAC allocation – N559.181 billion, Independent Revenues N360.460 billion, Aids and Grants N67.601 billion, Capital Development Fund N34.879 billion, Loans/Debts N250 billion.
“For the purpose of emphasis, the debt component of this budget is N250 billion compared to N237 billion in the 2024 fiscal year, which accounts for an increase of 5.49%. This also constitutes about 16.59% of the aggregate budget estimate itself.
“In the same way, debt service for the 2025 fiscal year is proposed to gulp about N120.809 billion compared to N76.924 billion in the previous year. The difference shows a 57.89% increase above what the state budgeted for debt service in the 2024 fiscal year.”
Also in his remarks, Ibas said the revised total projected expenditure for Rivers State for the 2025 fiscal year is N1.846 trillion “(after incorporating first-quarter expenditure undertaken by the previous administration).”
He put the total projected revenue for the state in 2025 at N1.490trillion against a target of N800.39 billion), exceeding the estimate by N250.37 billion or 31.6%.
According to him, the budget framework integrated pre-submission expenditures to ensure “lawful appropriation, transparency, and credibility.”
He said in anticipation of a return to constitutional order, the budget proposal retained provisions for the offices and functions of suspended political actors.
He said given the formal declaration of a state of emergency, the budget prioritized peace, order, and the protection of national assets.
He said: “Robust allocations are made for military-civilian coordination, community security, and intelligence operations.
“Significant investments will enhance data gathering and analytics, improve early warning systems, and support unified command structures to eliminate duplication of security efforts.”
On infrastructure and environmental resilience, Ibas said that the sum of N324.5 billion was allocated to physical infrastructure like roads, bridges, and transport connectivity to “boost commerce and urban-rural integration.”
He added that N38.85billion was earmarked for shoreline protection, erosion control, and land reclamation to mitigate climate risks and environmental displacement.
On agriculture and food security, the Sole Administrator said the sum
N10 billion was allocated to boost local production of rice, cassava, maize, oil palm, poultry, and coconut.
He equally said the sum of N4.5 billion was allocated for the Rural Access and Agricultural Marketing Programme (RAAMP) “to unlock an additional N45 billion in rural access projects.”
He said that the sum of N3.5 billion for modernising agricultural practices and food processing, saying: “These initiatives are projected to generate over 16,000 jobs in two years.”
On healthcare and education, Ibas said that the sum of N55 billion was earmarked for relocating and expanding Rivers State University Teaching Hospital, N50 billion for upgrading zonal hospitals, N5 billion for a revolving drug fund, N30 billion for secondary schools, N5.75 billion for rehabilitating primary schools and N1.5 billion for inclusive special education.
He said the sum of N2.5 billion has been earmarked for for women’s economic empowerment, N3 billion to establish a youth resource and innovation centre, N20 billion for recapitalizing the Rivers State Microfinance Bank, improving credit access for MSMEs, especially youth and women.
“These interventions will deepen inclusive economic growth and support entrepreneurship across demographic lines,” he said.
Besides, he said that the sum of N25 billion was earmarked for affordable housing schemes targeting middle-income families to decongest urban areas and rehabilitate state-owned housing.
He said his administration would also prioritize major investments in flood mitigation, drainage rehabilitation, and ecosystem protection.
He said over N117billion was allocated for pensions and employee benefits and N50 billion “specifically allocated to begin clearing pension and gratuity arrears.”
Bamidele while briefing the press after the closed session, said 85% of the 2025 budget estimates of Rivers State being considered by the committee were originally drafted by the administration of Governor Siminalayi Fubara prior to the declaration of emergency rule.
He added: “The current economic team made adjustments to reflect an additional 15% increase, largely to accommodate new and urgent projects.
“One critical addition was the N50 billion provision to settle outstanding pensions and gratuities—an initiative strongly advocated by the Sole Administrator and endorsed by this Committee.
“We agree wholeheartedly, as this is not merely about infrastructure; it is about people—retired civil servants who have served the state with dedication and now deserve their entitlements.
“We also commend the structure of this budget: over 70% is dedicated to capital expenditure, while less than 30% is allocated to recurrent expenses, with only a negligible fraction going into overheads or consumables.
“This is a commendable standard we urge other state governments to emulate to ensure the delivery of tangible democratic dividends.
“During the defence, we asked numerous questions and sought clarifications. The Administrator, along with his accounting team —particularly the Accountant General and Permanent Secretary—provided comprehensive responses and relevant documentation.
“Our intention is to produce a draft report by Monday, after which the Committee will reconvene formally to review and adopt it.
“We aim to present our recommendations to the Senate plenary next week.”
