Governor Siminalayi Fubara has presented Rivers State 2025 budget proposal of N1.1 trillion to the Victor Oko-Jumbo-led Rivers State House of Assembly.
TheNewsGuru.com (TNG) reports Governor Fubara presented the Rivers State 2025 budget christened budget of inclusive growth and development on Monday.
Speaking during the budget presentation, Fubara disclosed the total projected revenue for Rivers State for the 2025 Fiscal Year is N1,188,962,739,932.36 only.
He further disclosed that the two components of the budget are constituted as follows: Recurrent Expenditure is N462,254,153,418.98, Capital Expenditure of N678,088,433,692.03, Planning Reserve of N35,688,864,931.16, and a closing balance of N12,931,287,890.19.
“This gives a Recurrent/Capital expenditures ratio of 44:56% indicating the sincere commitment of our administration to both infrastructural and human capital development of our people and state,” Fubara said.
In his budget presentation address, the Governor gave a detailed breakdown of the River State 2025 budget. The address reads in full below:
Introduction
Mr Speaker, Honourable Members, distinguished guests, ladies, and gentlemen.
2. I am profoundly pleased and honoured to stand before you today to present to the members of this Honourable Assembly the Rivers State Budget for the 2025 financial year.
3. As you know, this is my second budget address since assuming the mantle of leadership on May 29, 2023. On December 13, 2023, I presented my first budget under the theme: Renewed Hope, Consolidation and Continuity.
4. A year later, we have every reason to thank God for the continuing privilege of serving our dear State and her people with courage, honour and integrity despite the obvious challenges.
5. Mr Speaker, I want to assure you and the good people of Rivers State that we are determined and resolute in providing our dear State with unmatched services.
6. Indeed, we were elected at this time to serve God’s divine purpose for the State and our people, and with Him by our side, we will continue to provide and ensure our campaign promises are fulfilled.
7. Our mission in government is to serve the State, advance its development, and deliver sustainable improvements in the well-being of all residents.
8. As servant-leaders, we are responsible for securing the State and delivering quality, effective and efficient public services, including education, healthcare, and socio-economic infrastructure to serve the best interests of our people.
9. We also must create an enabling environment for the private sector to thrive and create jobs and sustainable economic opportunities for all, including our youths, to prosper and live a good life.
10. From the onset, we committed to responsibly deploying our collective resources to build a more secure, peaceful, and developed State and provide a prosperous future for our children.
11. We have been working tirelessly in the past one and a half years to restore confidence and trust in the government and fulfil all our promises to the good people of Rivers State.
12. To the glory of God, we have made unprecedented investments and recorded significant impact in our priority areas of road infrastructure, healthcare, education, general administration, and the security of lives and property.
13. Our economy is steadily growing while socio-economic infrastructures, including roads, schools and hospitals, are being delivered at an unprecedented pace throughout the State, including the remotest parts.
14. Therefore, it is with a profound sense of pride and fulfilment that I come to present the Rivers State budget for the 2025 fiscal year to enable us to continue to push on with our bold agenda to build and realize the Rivers State of our dreams: a Rivers State that is truly secure, great and prosperous with the best environment for people to live, work, do business, and visit.
2024 BUDGET PERFORMANCE REVIEW
15. Mr Speaker, you may wish to note that the total revenue projection for the 2024 fiscal year was Eight hundred billion, three hundred and ninety-two million, four hundred and eighty-five thousand, four hundred- and thirty-three-naira, one kobo (N800,392,485,433.01), only.
16. Out of this total revenue, Two Hundred and Eighty-Three Billion, Two Hundred and Thirty-Five Million, Three Hundred and Six Thousand, Four Hundred and Six Naira (N283,235,306,406) was expected from the Federation Account Allocation Committee (FAAC),
17. We also provided the sum of Two Hundred and Thirty-One Billion, Fifty-Seven Million, Eight Hundred and Thirty-Six Thousand, Nine Hundred and Forty-Five Naira (N231,057,836,945) only to be derived from internal revenue sources, including taxes, capital receipts, and loans.
18. As of November 2024, the total FAAC receipts were N340, 771, 971, 028.50 billion, about N57,536,664,622.52 more than the projected figures for the fiscal year.
19. The favourable revenue performance from FAAC resulted from enhanced revenues from our share of the Value-Added Taxes and Forex Exchange Gains.
20. Similarly, as of the end of November 2024, the internally generated revenue was N282,557,399,997.78, which was over N51 billion more than the N231,057,836,945,00 budgetary projections.
21. We are expecting the internally generated revenue for 2024 to close at over N300 billion by the end of December 2024, which is over N100 billion more than the total receipts for 2023.
22. Mr Speaker, it is worthy of note that this is the first time the State Government would record a historic N100 billion increase in IGR in a succeeding year.
23. Most interestingly, the phenomenal increase was realized without raising or imposing new taxes, which underscores the success of our administration’s commitment to enhancing domestic resource mobilization as the primary source for funding the government’s expenditures and the measures we have put in place to drive this vision.
24. The organic increases in our internally generated revenue also show that the State’s domestic economy is on the right path to real and sustainable growth and that it is only a matter of time before we realize our abiding drive for economic self-reliance and sustainability.
25. Furthermore, we funded our expenditures and met all our debt repayment obligations for fiscal year 2024 without taking any new loans as a deliberate strategy to reduce deficit financing in line with our commitment to prudent management of available public funds to ensure real and sustainable economic growth and development.
26. Mr Speaker, on the expenditure side, the good news is that the 2024 recurrent budget was fully funded, thereby recording a 100 per cent implementation.
27. In addition to fully meeting our salary, gratuity, and overhead obligations, including the continuous payment of arrears to workers, pensioners, and MDAs respectively, we have also implemented the N85,000.00 minimum wage, which is the highest in the country and matched only by Lagos State.
28. Similarly, the 2024 capital budget also recorded a very successful implementation with 100 per cent historical performance, in line with our administration’s commitment to transforming the State through extensive infrastructural and human capital development.
29. In terms of project execution and delivery, we worked on all the inherited projects and initiated some new legacy projects within the 2024 fiscal year.
30. As of today, we have delivered over 30 road projects and numerous schools, health, security, housing, and community development projects across the State.
31. Construction work has continued with our flagship road projects, such as, the Port Harcourt dual carriage Ring Road and Bridges, the Elele Umudioga – Egbeda Mmini-Ikiri-Omoku dualization, and the Trans-Kalabari Road, etc.
32. In all, we met both our revenue and expenditure targets and substantially achieved our budget objectives for 2024 in terms of expectations, performances, and project delivery despite the macro-economic challenges of the national economy, including the high inflation, the devaluation of the naira, and the prolonged political crisis.
THE 2025 BUDGET
33. The total projected revenue for Rivers State for the 2025 Fiscal Year is One Trillion, One Hundred and Eighty-Eight Billion, Nine Hundred and Sixty-Two Million, Seven Hundred and Thirty-Nine Thousand, Nine Hundred and Thirty-Two Niara, Thirty-Six Kobo (N1,188,962,739,932.36) only.
34. The two components of the budget are constituted as follows: Recurrent Expenditure is N462,254,153,418.98, Capital Expenditure of N678,088,433,692.03, Planning Reserve of N35,688,864,931.16, and a closing balance of N12,931,287,890.19
35. This gives a Recurrent/Capital expenditures ratio of 44:56% indicating the sincere commitment of our administration to both infrastructural and human capital development of our people and state.
36. Mr Speaker, Honourable Members, the 2025 budget is premised on achieving sustainable economic growth, accelerating the development of the State, and improving the living standards of our people.
37. Therefore, it contains policy measures and objectives that will strengthen our capacity to weather possible external shocks from the volatility of the national economy to build the resilience of our economy and advance our collective development and prosperity.
38. It is for this reason that we have the theme for the 2025 Budget as a Budget of inclusive growth and development.
THE 2025 BUDGET ASSUMPTIONS/POLICY OBJECTIVES
39. The 2025 Budget is premised on the following assumptions:
(i) Oil price benchmark of $80 per barrel;
(ii) Oil production rate of 1.8 million barrels per day;
(iii) Naira: USD exchange rate of 1500/1; and
(iv) 22% inflation rate.
40. We are also projecting improved contributions from the non-oil sectors to the national economy, including substantial receipts from value-added and exchange gains.
41. In addition, we are projecting a GDP growth rate of 3.18% for the State, increasing internally generated revenue to not less than 35% of the total Budget, and reducing the fiscal deficit by limiting if not outright freezing resort to domestic borrowing for budget funding and augmentation.
42. Furthermore, we shall expand our internal tax base by bringing more people into the tax net and save money where we can and invest more in the critical sectors that will strengthen the State’s economic foundations and enhance our development.
43. We will further improve the ease of doing business and provide incentives to attract local and foreign direct investments into the State to stimulate economic growth, improve internal revenue generation and enhance job creation.
44. Mr. Speaker, the above assumptions and budget policy objectives were derived from the Economic and Fiscal updates, the fiscal strategy paper and the budget policy statement which adequately examined global dynamics and the current trends with their implication for the national and the state economic performance potentials in addition to the three years historical performance of the state revenue and expenditure.
45. The overall objective of this is to pursue as much as possible and achieve a realistic budget that significantly closes the gap between estimates and possible actuals.
46. We are therefore confident that the 2025 appropriation estimate is the true reflection of the reality of the state of our economy with reasonable flexibility that allows for eminent shocks from the current challenges with the national economy and macroeconomic frameworks.
FINANCING THE 2025 BUDGET
47. The financial sources of the 2025 budget are as follows:
S/N
Revenue Source
Projected revenue
N
1
Internally Generated Revenue
264,368,639,654.59
2
Statutory Allocation
18,202,545,782.33
3
Mineral funds
132,172,838,156.03
4
Value Added Tax
204,262,019,866.24
5
Refunds Escrow, Paris/ECA
31,200,000,000.00
6
Refunds from bank charges
27,500,000,000.00
7
Excess Crude Account
20,600,000,000.00
8
Exchange rate gain
25,244,020,674.39
9
Forex equalization
50,000,000,000.00
10
Other FAAC
50,000,000,000.00
11
Asset sales
25,000,000,000.00
12
Capital receipts
9,879,557,210.00
13
Proposed internal grants
60,080,000,000.00
14
Proposed External Grants
7,521,830,698.60
15
Proposed Loans/Bonds
250,000,000,000.00
16
Prior year Balance
12,931,287,890.19
TOTAL
1,188,962,739,932.37
RECURRENT EXPENDITURE
48. Mr Speaker, the sum of Four Hundred and Sixty-Two Billion, Two Hundred and Fifty-Four Million, One Hundred and Fifty-Three Thousand, Four Hundred and Eighteen Naira, Ninety-Nine Kobo (N462,254,153,418.98) only is 0allocated to Recurrent Expenditure
49. The breakdown of the Recurrent Expenditure is as follows:
S/N
Expenditure Item
Amount N
1
Personnel Emolument
169,668,205,260.86
2
New Recruitments
49,137,254,525.70
3
Overhead costs
20,135,590,136.00
4
Grants, contributions and subsidies
9,600,000,000.00
5
Counterpart pension scheme
15,000,000,000.00
6
Gratuities
60,000,000,000.00
7
Death Benefits
18,000,000,000.00
7
Monthly pensions
30,100,000,000.00
8
Domestic loans interest
30,246,908,958.47
9
Foreign loan interest
6,419,558,682.61
10
Domestic loan principal repayment
29,000,000,000.00
11
Foreign loan, principal repayment
14,978,970,259.83
12
FAAC Deductions
3,679,614,822.51
13
COT/Charges/General Admin
5,000,000,000.00
14
Reimbursements
60,000,000.00
15
Harmonization
840,000,000.00
16
Consolidated Revenue Fund Charges
391,050,770.00
TOTAL
462,254,153,418.98
CAPITAL EXPENDITURE
50. The sum of Six Hundred and Seventy-Eight Billion, Eighty-Eight Million, Four Hundred and Thirty-Three Thousand, Six Hundred and Ninety-Two Naira, Three Kobo (N678,088,433,692.03) only is allocated to the capital expenditure.
SECTORAL ALLOCATION OF THE CAPITAL BUDGET
51. The sectoral allocation of the capital budget is as follows:
S/N
Sectoral Expenditure
Projected Expenditure
N
1
Governance
213,585,509,623.75
2
Information and Communication
3,404,986,385.31
3
Public Administration
21,110,915,588.89
4
Finance and Planning
11,143,591,806.45
5
Agriculture
30,954,421,684.60
6
Infrastructure
195,074,765,456.35
7
Commerce and Investment
2,723,989,108.25
8
Culture and Tourism
2,104,900,674.55
9
Education
63,275,138,622.61
10
Health
97,750,635,249.84
11
Social Development
15,477,210,842.33
12
Environment/Sustainable Dev
12,877,039,420.79
13
Judiciary, Law and Justice
8,605,329,228.31
TOTAL
678,088,433,692.03
52. Hon. Speaker, besides aligning with our fiscal reality, the 2025 budget prioritizes the fundamental objectives of building a secure, prosperous and resilient State with inclusive economic growth, sustainable development, and improved standards of living for everyone.
53. We will strive to address the challenges of socio-economic inequality, social exclusion and poverty by ensuring improved access to food and nutrition, quality education and healthcare, socio-economic infrastructure, jobs and economic empowerment.
54. Consequently, our core priorities for the 2025 fiscal year include agriculture, economic growth, quality education and healthcare delivery, basic infrastructure, and social investments.
Agriculture
55. Mr Speaker, I wish to reiterate once more that agriculture is at the heart of our business objectives for 2025 because it is imperative for job creation, economic growth, and achieving food security for our dear State. Accordingly, we have allocated nearly N31 billion naira to support interventions in agricultural development.
56. This sum will enable us to implement a comprehensive agriculture transformation support programme for our youths and contribute to significantly resolving the challenges of youth unemployment, poverty, and food insecurity in our State.
57. We shall provide land preparation, farm inputs and extension services, including training, tractors, and access to improved seedlings and fertilizers to farmers to enhance their productivity and farm yields.
58. We will build more rural access roads to enable unimpeded access to farmlands in our rural areas and ease the transportation of farm products to urban markets and existing export terminals.
59. We are committed to actualizing the Africa Development Bank’s funded Agriculture Processing Zone Scheme in the State. I have accordingly mandated the Commissioner of Agriculture to liaise with the Federal Ministry of Agriculture9 and accelerate the implementation processes.
60. Furthermore, we are ready to collaborate and provide incentives for private investments in large-scale farming of livestock, fish, cash crops and vegetables for domestic consumption and export.
Education
61. Mr Speaker, we shall continue to provide access to quality education at all levels of our educational system to enable our children to have the knowledge and skills that they need to excel in their careers and contribute to the development of the State.
62. Consequently, we have proposed to spend over N63 billion naira representing 9.3 % of the budget on education in fiscal year 2025.
63. With this, we shall access all outstanding matching grants from the Universal Basic Education Commission to rehabilitate, equip and furnish dilapidated public primary and junior secondary schools and continue to provide free basic education to our children.
64. We will also rehabilitate, equip and furnish as many senior secondary schools across the State including the provision of new classrooms, perimeter fencing, water and electricity to provide a conducive environment for effective teaching and learning to take place.
65. We shall work with the school-based management boards, administrators, parents and teachers to fix our broken school system, improve enrollments, keep learners in school, promote effective teaching, and improve learning outcomes.
66. We shall also ensure the recruitment of 3000 teachers to improve the teacher: learners’ ratio and provide incentives for teachers posted to serve in our rural communities.
67. Furthermore, we shall ensure the take-off of the Rivers State College of Education at Opobo and continue to provide necessary funding support for all our tertiary institutions to provide infrastructure, build more hostels and enhance their administrative capacity to effectively discharge their mandates on human capital development for the State and country.
Healthcare
68. Mr Speaker, the health of our people is a major priority in our development objectives. Consequently, our government will continue providing quality and affordable healthcare services to our people.
69. To this end, we propose to spend N97.750 billion naira representing 14.4% of the budget on quality healthcare development and delivery.
70. With this sum, we will complete, equip, furnish and commission the zonal hospitals and continue with the construction of the expanded neuropsychiatric hospital, and the new general hospital at Rumuigbo.
71. We will also rehabilitate more general hospitals and health centres across the State and ensure the procurement of essential drugs, medical supplies and equipment for effective and efficient healthcare delivery.
72. We will continue to provide more infrastructure and strengthen the capacity of the Rivers State University Teaching Hospital to provide quality, effective, and efficient tertiary healthcare services to citizens and visitors to the State.
73. Finally, we will also continue to strengthen the health system by ensuring that every health centre is serviced by a medical doctor, improving patient care and enhancing record management to ensure quality and efficiency in our healthcare delivery in rural communities.
Road and Transport Infrastructure
74. Mr Speaker, as you know, the provision of road and transport infrastructure is the oxygen of development and the surest pathway to sustainable human prosperity.
75. Thus, our commitment to providing quality socio-economic infrastructure to accelerate economic growth, job creation and improved standard of living for our people cannot be over-emphasized.
76. It is for this reason that we have proposed over N195 billion for the provision of road and transport infrastructure across the State in the 2025 fiscal year.
77. With this, we shall complete more of the numerous ongoing road projects and initiate the construction of new ones across the State, including the rural areas as proposed in the budget details.
78. Mr. Speaker, Rivers State is ripe for the introduction of a modern, secure, comfortable, effective and efficient multi-modal transportation system to move goods and services and accelerate socio-economic development and transformation of the State.
79. Accordingly, we will support and facilitate the modernization of the public transport system through necessary incentives to experienced and efficient local and domestic industry investors to invest and develop the sub-transport sector to improve the quality of public transportation service in the State.
Energy supply
80. We will complete all ongoing electrification projects, including delivering transformers and replacing the generator-powered streetlights with solar energy-powered streetlights across Port Harcourt and Obio/Akpor Local Government Areas. This will save the state a lot of money from the purchase of diesel and the repairs or replacement of broken-down generator sets.
81. We will also ensure the passage of the Rivers State Electricity Market Bill to regulate and open the State’s energy sector for private sector investments to achieve energy security and accelerate the industrialization of our State.
Social Development and investments
82. Mr Speaker, we have proposed to spend N15.4 billion naira for the social development subsector of our economy to advance youth and gender empowerment, jobs and wealth creation, sports development, and social inclusion.
83. We will collaborate with Local Government Councils to establish youth resource and digital transformation centres to enable access to digital tools, internet services and training programmes for our youths to become economically successful and sufficiently self-reliant.
84. We will also continue to support and strengthen the capacity of State-owned sporting teams, especially, Rivers United, Rivers Angels, and the Hoopers to enable them to excel and win more laurels in both national, regional and international contests.
85. Mr Speaker, we appreciate the vital role small and medium enterprises play in the State’s economic development. Accordingly, we will continue to support small and medium enterprises development with access to funds, training, and infrastructure.
86. Furthermore, we are boosting the State’s culture and tourism sector with the concession of the Port Harcourt Tourist Beach for expansion and redevelopment with water parks and operationalization by a private company.
87. We will also strengthen the relevant State institutions to re-orientate and develop the creative skills and talents of our youths and empower them to become self-reliant, hardworking, successful entrepreneurs and job creators.
Governance and security
88. Mr Speaker, we have proposed over N213 billion for the provision of effective governance, public administration, social investments, and the security of lives and property for the 2025 fiscal year.
89. This sum will enable us to execute our mandates on public governance and deliver the dividends of democracy to our people through purposeful and highly impactful social policies, programmes and projects in the most efficient, effective and sustainable manner and achieve our strategic vision of being a prosperous State with healthy economic growth and development.
90. We will build the capacity of the civil service through continuous training to enable them to deliver their portfolio mandates and make a meaningful impact on the State’s development.
91. Mr. Speaker, we are unwavering in our commitment towards keeping Rivers State peaceful, safe and secure for people to live, work and visit.
92. Accordingly, we shall continue to prioritize the provision of security by working with all stakeholders, including the Federal Government, Local Government Chairmen, and our traditional rulers to strengthen the state’s security apparatus, including surveillance and intelligence gathering, to ensure effective and sustainable security of lives and property in the State.
93. We will also continue to work with and support the security agencies, including the armed forces, with the necessary logistics and cooperation to enable them to discharge their security responsibilities to the State and its people, and also protect the nation’s economic infrastructures.
94. We will implement necessary policies and programmes to improve the quality of life, conserve biodiversity, and protect our environment for the present and future generations.
Judiciary, Law and Justice
95. Mr. Speaker, the Judiciary, Law and Justice sector is indispensable in fostering economic growth, development, and the protection of lives and property.
96. Therefore, we remain unwaveringly in upholding the rule of law and judicial independence and ensuring the quick and effective administration of justice to citizens.
97. We are also committed to expanding access to justice by building more courtrooms, the appointment of more judges and magistrates and ensuring the well-being of all judicial officers and personnel.
98. Accordingly, we have proposed N8,6 billion for the law and justice sector for the 2025 fiscal year.
Conclusion
99. Mr Speaker, Honourable Members, it’s obvious that our government has risen to the challenge of development of our dear State with courage and commitment.
100. Despite the many challenges we have faced, we have not lost focus on the expectations of our people on good governance, development and improving the living standards of everyone.
101. Under our stewardship, we have fulfilled our solemn duty of sound fiscal management and proven our profound commitment to accelerating economic growth and unprecedented expansion of socio-economic infrastructure and human capital development.
102. We have also pursued new approaches to investment promotion and created an enabling environment for the private sector to thrive and create employment opportunities for our teaming youths.
103. No other government in recent history has delivered more capital investments and captured the confidence of our people in our ability and commitment to deliver strategic development and the building of prosperous, sustainable and inclusive progress in Rivers State than we have done.
104. Therefore, today we are presenting a budget that would empower us to consolidate the past gains, stimulate further investments into our economy and take our dear State to the next level of economic growth, social progress and shared prosperity.
105. Mr Speaker, permit me to express my profound gratitude to the good people of Rivers State for their unwavering support, prayers and trust over the last year and seven months I have had the privilege and honour of serving as their Chief Servant.
106. I wish to also thank Mr Speaker and the Honourable members of the Rivers State House of Assembly for standing with us and the people of Rivers State at this inauspicious time.
108. Together, let us continue to work towards building a better and more prosperous future for our dear State as I present the 2025 Appropriation Bill to this Honourable House for consideration.
109. Thank you for your kind attention. God bless you all; God bless Rivers State.
