Mbah Presents N521.5bn ‘Disruptive Growth’ Budget, Makinde N434.2bn ‘Economic Recovery’, Obaseki N325.3bn ‘Finishing Strong’

Kemi Olaitan in Ibadan and Gideon Arinze in Enugu

The Governor of Enugu State, Dr. Peter Mbah, yesterday presented a N521.5 billion budget for the 2024 fiscal year before the Enugu State House of Assembly.

The budget proposal, which he tagged: “Budget of Disruptive Economic Growth” is the highest in the state’s history, comprising N414.3 billion capital expenditure and N107.2 billion recurrent expenditure.

Also, Governor Seyi Makinde of Oyo State, presented the 2024 Appropriation Bill of N434.2 billion themed:” Budget of Economic Recovery”, to the state House of Assembly, noting that the budget was a chance for his administration to show its responsiveness to the current economic situation in the country.

In the same vein, the Edo State Governor, Mr. Godwin Obaseki presented a N325.3 billion proposal christened: ‘‘Budget Home Run: Finishing Strong,’’ to the Edo State House of Assembly.

Presenting the budget, Mbah said the budget was named budget of disruptive economic growth on account of the fact that it was structured to drive growth in a markedly different pattern than was done before now.

“We are proposing a total budget of size of N521,561,386,000.00 for the 2024 fiscal year as against the approved revised provision of N224,697,899,063.00 for 2023. This represents a 132 per cent increase from the 2023 revised budget.

“In the area of our revenues, we estimated that total recurrent revenues during 2024 will amount to N383,789,000,000.00 as against the approved revised provision for 2023 of N143,571,592,917,” he noted.

Giving a breakdown of government’s expected sources of revenue, the governor said, whereas the state had an opening balance of N11 billion, it expects to rake in N252.7 billion from Internally Generated Revenue (IGR), N60 billion from statutory revenue, N16 billion from excess crude oil revenues and others, while N44 billion would come from Value Added Tax (VAT).

On the recurrent expenditure and capital expenditure, Mbah explained: “For 2024 fiscal year, recurrent expenditure which is proposed at N107,227,266,000.00 is made up of N47,583,677,000 personnel costs, N41,804,698.000 overhead costs, and N17,838.891,000 consolidated revenue charges.

“With the total recurrent expenditure at N107,227,266,000.00, this translates to a net recurrent revenue of N276,561,734,000.00, which is thus transferred to the Capital Development Fund.

“The total capital expenditure for the year 2024 is projected at N414,334,120,000.00 as against N135,715,099,693.00 for 2023 revised budget. The current capital expenditure estimate will be funded from the sum of N276,561,734,000.00 to be transferred from the Consolidated Revenue Fund, and the capital receipts of N137,772,386,000.00 to be realised as follows:

“External and Internal Aids and Grants, N27.922,386,000; Public Private Partnership, N6,100,000,000; Domestic Loans/Borrowings, N71,000,000,000; and International Loans/Borrowing Receipts, N32,750.000.000”.

On sectorial basis, the economic sector got the highest in the Capital Expenditure Distribution, which is N207.8 billion, followed by the social sector, which got N182.9 billion.

However, education got 73.6 per cent of the social sector allocation, and 33 per cent of the total budget, representing the highest in both instances.

“This capital expenditure on education combined with the planned recurrent expenditure in the sector will bring our total spending on education to 33 per cent of the total budget”, the governor stated.

Other top allocations include infrastructural development and maintenance, particularly roads and public buildings, with N82.5 billion to, according to the governor, “smoothen connectivity, bolster trade, and enhance overall accessibility and attract investments that create jobs”.

 Agriculture got N25.1 billion in pursuit of the self-sufficiency and economic diversification agenda; water got N28.9 billion to ensure safe and quality water supply in the state and boost reticulation across the Enugu metropolis; and health, got N21.7 billion.

Responding, the Speaker, Hon. Uchenna Ugwu, while commending the governor for the remarkable impacts he had made in six months, including the restoration of water to Enugu city, pledged a thorough and expedited work on the 2024 budget estimates.

Makinde in his presentation to the state House of Assembly, noted that the budget was a chance for his administration to show its responsiveness to the current economic situation in the country.

The governor, who presented the N434,221,765,938.79 budget proposal to the House of Assembly presided over by the Speaker, Hon. Adebo Ogundoyin, said his government had been proactive in responding to the hardship people face.

He added that the administration had taken all the necessary steps to ensure that the 2024 budget addresses the economic challenges of the coming year and ensure that his vision of sustainable development in the state is achieved.

The governor urged the lawmakers to speedily consider the 2024 Appropriation Bill for passage for the benefit of Oyo State people.

The total capital expenditure in the proposed Budget Estimates stands at N222,337,320,199.85 while the total recurrent expenditure is 211,884,445,738.94, with education, infrastructure, health and agriculture sectors getting the lion’s share of the allocations.

The governor said: “This budget presents an opportunity for us to show how we are matching our promises as stated in our roadmap for sustainable development 2023-2027 with definite action plans.

“Second, this budget is a chance for our administration to show our responsiveness to the current economic headwinds. You will agree that the effects of the removal of fuel subsidy and dollar-naira currency by the federal government have brought hardship to our people.

“Therefore, this budget proposal will cover specific projects, policies, and actions that, when implemented, will cushion the impact of the economic issues that we are currently faced with.”

He added, “it is against this backdrop that we have tagged this budget ‘Oyo State Budget of Economic Recovery’. It is my honour to present a total budget of N434,221,765,938.79. The total capital expenditure is N222,337,320,199.85 while the total recurrent expenditure is 211,884,445,738.94.

“What you will immediately notice is that we have been able to, once again, achieve a budget where capital expenditure is about 2.4 per cent higher than the recurrent expenditure.

“We believe that the growth of our economy is dependent on the fiscal decisions we take regarding our capital expenditure. Therefore, we are focusing on projects that will yield positive results for our economy in our areas of comparative advantage.”

The Speaker of the House of Assembly, Ogundoyin, in his address, commended the governor for steps he took to rebuild the state under Omituntun 2.0, adding that the governor has set out a new order of transformation towards sustainable development in the state.

Meanwhile, Obaseki also presented a N325.3 billion budget to the Edo State House of Assembly, for the 2024 fiscal year, which is a slight increase from the N320 billion budgeted for the year 2023.

Obaseki, who presented the budget to the Assembly, at the Anthony Enahoro Assembly Complex in Benin City, said the budget is made up of N178 billion for capital and N146 billion for recurrent expenditure.

The governor noted that the total projected revenue for 2024 is N303 billion, consisting of N55billion statutory allocation, VAT of N38 billion, capital receipts of 40 billion and IGR of N72 billion and N10 billion from grants, among others.

He added: “The revenue estimates are based on a $65 per barrel benchmark for crude oil with an average daily production of 1.60 million barrels per day as well as an increase in IGR to N72 billion, which will be bolstered by reforms in revenue collection, property laws and land management reforms.”

Obaseki said the focus areas for the 2024 fiscal year include growth and employment enablers such as the trailer and transit parks, ICT infrastructure, Benin Port projects, which will gulp N85 billion; road and transport infrastructure, N62 billion; health, N33 billion; education, N32 billion and buildings, physical planning and development control, N 21 billion.

Other areas include Social Welfare/Benefits N16 billion; Environment, N5 billion; Electricity, N7 billion; Agriculture, N6 billion n and Youth, Social Development and Gender, N6 billion.

According to him, the 2024 budget is informed by the need to build a resilient and sustainable foundation for the reforms, initiatives and programmes that we have embarked on in the last seven years.

“The ultimate target is to promote economic expansion, technology, arts and culture, social inclusion and economic empowerment for Edo citizens, through sustained investments across various sectors of the economy necessary to drive growth and development.

“Public Private Partnership (PPP) will continue to dominate our investment initiatives in the New Year,” the governor added.

He said the year 2023 has been characterised by political and economic uncertainties, especially with the devaluation of the naira by almost 100 per cent and the removal of fuel subsidy which led to a threefold increase in the price of Premium Motor Spirit (PMS).

These policies have, he said, have added to the already tough economic and social conditions faced by the citizens, resulting in thousands more slipping into poverty.

Receiving the 2024 budget proposal, Speaker of the Edo State House of Assembly,  Hon. Blessing Agbebaku assured the governor that the legislative arm will continue to work harmoniously with the executive to ensure the socio-economic growth and development of the state.

Hailing the governor for his developmental strides across all sectors of the state, the speaker commended the governor for extending the free bus service across the state by three months.