The Akwa Ibom government appears to be facing herculean task following reluctance of the Federal Government to release ecological funds to tackle its myriad of ecological challenges in the state.
In 2019, the state government could not tackle such challenges as N21 billion earmarked as ecological funds were not released to it by the Federal Government. For 2020, the state government has budgeted N20 billion as the funds, and the government is yet to access it.
Unfortunately in 2019, some parts of the state were submerged, residents sacked, houses and farmlands were taken over by heavy floods and roads rendered impassable by incessant flooding. Yet, the state government could not render remedying solutions to the flood victims.
Sharing the concern of the state government on the issue, Mr. Nsikan Linus Nkan, the state commissioner for Finance, said the state government had applied to the Office of the Secretary to Government of the Federation for release of ecological funds.
Speaking during a breakdown of 2020 budget analysis on Monday, December 30, 2019, Nkan said: “We applied for the release of the funds since it is domiciled in the Office of SGF. In 2018, the sum of N25 billion was approved for us, but up till now, the money has not been released to us.”
Giving a breakdown of the 2020 budget analysis, Nkan said “This is the authentic source of what the state government received as the roads constructed by the government on behalf of the federal government because we are aware people have been calling from everywhere was N369,576,986.28 for 2020. This is against N447,902,796,440 approved estimate of 2019. We have a difference of N78. 3 billion or 17.5% compared to the two years budget.”
According to him “The recurrent expenditure for 2020 is N200,028 billion compared to N200,025 billion estimate approved for 2019.
“The capital expenditure plus the recurrent expenditure that gives us the budget size of N597.735 billion for 2020. This is against the N672,984,760,760, the difference of the two is N75.2 billion or 11.2 per cent.
“The expected internally generated revenue profile for 2020 are personal tax, licences, royalty, fee, fines, sales, earnings, rents, investment, income, interest earnings of parastatals and boards.”
He explained that “For 2020, a total of N55.5 billion is the approved estimate, while for 2019 it was N46.7 billion, a difference of N8.7 billion or 18% that is for internally generated revenue.
“The recurrent expenditure for 2020 include: Personnel Cost of N5.50 billion of 42.9 and Consolidated Revenue Fund of N127.6 and a total N225 billion for the approved estimate for 2020.
“For 2020 Personnel Cost of N61 billion, Overhead Cost N50.2 billion, Consolidated Revenue Fund N116.9 billion.
“Therefore the total Recurrent Revenue for 2019 was N307.7 billion and N310.5 billion for 2020 budget it is.”
The commissioner described “The budget is an important tool used by the government to govern the people. The resources at the disposal of government belong to the people and the government utilises these resources that belong to the people for the provision of goods and services to ensure better living for the people is of great importance to the people.
He sought cooperation of all “That is why we have here the traditional rulers coming here to show their support and I think they will also take things home here because when we are talking about budgetary processes in government we are looking at revenue and expenditure.
“The most reliable source of revenue of government is from tax- that is the contributions of citizens to the government.
“The traditional rulers are to direct the people under their domain on the need for them to pay their tax as part of their contributions to government will now use the tax to provide services we need to have a better life,” Nkan advised.
