Rivers to spend N480bn in 2019
NIGERIA’S OILRICH subnational Rivers State plans to spend N480.411 billion for the 2019 fiscal year, which is only 5.43 percent of Nigeria’s N8.83 trillion national budget for the incoming year.
Governor Nyesom Wike, while presenting the 2019 state Appropriation Bill to the state House of Assembly for consideration and approval on, christened it, “budget of sustainable growth and development.” The governor announced that the budget is premised on an oil benchmark of $55 per barrel, which is $5 lower than the Federal Government’s doubtful $60 per barrel.
Recall that international market prices for crude oil hover around mid $50’s per barrel.
Funding of the 2019 state budget will be from internalpower ly generated revenue (IGR) of N120.492 billion; Statutory Allocation, N73.169 billion; 13% oil minerals fund, N145.070 billion; Value Added Tax, N26.377 billion; Refunds, N27.337 billion; Local Credits, N45 billion; International Credits, N30 billion; Capital receipts, N300 million; Exchange gain, N8 billion. Prior year balance, N4.662 billion.
Surprisingly, hardly had the governor placed the budget document on the Assembly table, than the lawmakers gave it its first reading. According to Ikuinyi-Owaji Ibani, speaker, the assembly has already approved the state’s Medium-Term Expenditure Framework (MTEF), which will form the basis of the budget’s consideration.
Wike informed that the strategic thrust for the 2019 budget is to promote economic growth and diversification, create jobs and reduce unemployment; take as many of Rivers people out of poverty and improve the standard of living of the oil-rich state.