Following an assent of the N700 billion budget, Akwa Ibom Governor, Udom Emmanuel, has affirmed the 2023 Appropriation Act for the state.
As his last budget in office, Governor Udom Emmanuel had presented the 2023 Budget to Akwa Ibom House of Assembly for consideration and approval on Monday, November 7, 2022.
The figure is N2.999 billion higher than the N697.005 earlier presented by the governor to the House of Assembly.
Also read: Akwa Ibom 2022 Appropriation Bill Becomes Law- Governor
The figure shows 0.4 per cent upward review by the House of Assembly to accommodate some interventions on roads. The new figure comprises recurrent expenditure of N344.005 billion and N355.995 billion capital expenditure.
On Friday, December 16, the Akwa Ibom State House of Assembly passed N700 billion as the state’s Appropriation Bill for the 2023 fiscal year.
Performing the brief signing ceremony during an expanded State Executive Council meeting on Friday, December 30, at the Executive Chambers of Government House in Uyo, Governor Emmanuel thanked the lawmakers, Budget Office and all other agencies that have played roles towards the timely passage of the 2023 budget and successes recorded by his administration in the various areas of development.
The governor noted that such cooperation has aided the completion of more than 4,300 Inter-ministerial Direct Labour projects, maintaining that the different arms of the state government will continue to work together in the interest of the people.
“I thank the Speaker and members of the State House of Assembly,” Emmanuel stated.
“Without their cooperation, we wouldn’t have gone as far as we have gone. I want to thank the Chairman and members of the House Committee on Appropriation.
“I really need to thank the Permanent Secretaries for the support they have given to Executive members and most especially the Director of Budget.
“Government is one. We are running the same government; we are serving the same people; we have the same purpose. People must understand that whatever we are doing here is for everybody,” he said.
Akwa Ibom House of Assembly passes
The House passed the Bill following the adoption of report of the House Committee on Finance and Appropriation chaired by the member representing Ikot Abasi/Eastern Obolo state constituency, Hon. Uduak Odudoh during Thursday plenary.
The House approved the total sum of N344.005 billion as the Recurrent Expenditure and N355.995 billion for the Capital Expendture.
“At the end of his address, in pursuant of Section 121 (1) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), he laid before the House estimates of revenue and expenditure of Akwa Ibom State for 2023 for consideration,” Odudoh stated.
The Speaker, Mr. Aniekan Bassey, commended the Committee on Finance and Appropriation for speedy deliberation on the budget in the interest of the people of the state.
Udom presents to the House
Governor Emmanuel had earlier presented N697.005 billion budget to the Akwa Ibom State House of Assembly.
The budget comprised a recurrent expenditure of N344.005 billion and capital expenditure of N353 billion.
Prepared in accordance with International Public Sector Accounting Standards (IPSAS) Accrual template, the budget is predicated on an oil benchmark of 70 dollars per barrel at a production rate of 1.69 million barrels per day with an estimated exchange rate of N435.57 to U.S. dollars in line with the national budget benchmark projections.
He stated some achievements of the administration to include the creation of 25 industries in the state such as Jubilee Syringe Factory, Flour Mills, St. Gabriel Refinery and the others which have employed thousands of people in the state.
Furthermore, he stated that a car manufacturing plant will soon commence operations despite the foreign exchange challenges the nation is facing.
Premised on the Eight-Point Completion Agenda of the administration which focuses on Industrialisation, Aviation Development, Rural and Riverine Area Development, Agriculture, Human Capacity Development, Security, Infrastructure, Small and Medium Scale Enterprises, the 2023 Budget of Completion has at its core focus consolidating the gains made so far in these eight areas.
The Governor stated that the total projected recurrent revenue for 2023 is estimated at N390.850 billion as against the approved revised provision of N303.854 billion representing an increase of 29 per cent in revenue projection for 2023.
He further added that the breakdown showed N200 billion would come from derivation revenue, N47.85 billion would come from Internally Generated Revenue, N12 billion from electronic money transfer levy, N30 billion from Value Added Tax, N51 billion from Statutory Revenue, N10 billion from Excess Crude, and N40 billion from exchange gain, augmentation and others.
For the recurrent expenditure of N344.005 billion, it is made up of N80.05 billion for personnel cost, N157.954 billion for overhead cost, N31.5 billion for social contributions and benefits, and N1.5 billion for grants, contributions and subsidies. The expenditure earmarked for servicing public service debt is N73 billion.
Against the approved revised provision of N328.918 billion for 2022, he stated that the total Capital Receipts and Expenditure for the year 2023 is estimated at N353.000 billion. A total projected Capital Receipts shows that N46.845 billion will be transferred from the Consolidated Revenue Fund.
According to him, the balance of N306.155 billion is to be realised as follows, N40 billion from the opening balance of 2022 budget, N134.108 billion from Direct Credit Substitute/Receivable Discounting Facility, N4 billion from External Bank Loan, N15.79 billion from Grants, N5 billion from Ecological Fund, N250 million from Reimbursement from the Federal Government on Roads, N100 billion from other exceptional income through exploration of the money market and other markets around the globe, N2 billion from Stabilisation Account.
A breakdown of the sectoral allocation of the budget is as follows: N149.2 billion for Administration, N 448.337 billion for Economy, N12 billion for Law and Justice, N440 million for Regional, N91.88 billion for Social, N50.644 billion for Education and N14.129 billion for Agriculture.
Before stating that N30.492 billion has been allocated to Health Care, Udom stated that the “State Health Insurance Scheme will be established to ensure a robust access to health care services and to maintain a healthy population in the state for increased productivity.” He thanked the Ministry of Health for the role they played in curtailing the COVID-19 pandemic and tasked them to fortify the state against the outbreak of Monkey pox and other diseases.
Emmanuel announced the strategies through which the objectives of the budget would be executed.
‘‘The first strategy will involve partnering foreign investors in relevant sectors of the state economy and robust human capital development. Widening the industrial base of the state which will inevitably enhance the availability of goods and services for domestic consumption is another strategy that will be utilized.
‘‘Thirdly, another strategy will be to enhance delivery of qualitative and prompt service by public servants through automation and effective intra and inter MDAs collaboration, as well as improving fiscal transparency and accountability in all MDAs with emphasis on cost effectiveness in all programmes and projects of government,’’ he added.
