According to the 2024 Third Quarter Budget Performance Report published by the government of Akwa Ibom State, the oil-rich State, between January -September 2024 had a total revenue of N757.17 billion. Within this period, the State spent only N228.76 billion leaving a balance of N528.41bn for the last quarter of 2024. This implies that for the nine months period, Akwa Ibom State could only spend 30.2 percent of the money in its coffers.
The expenditure pattern has generated issues with many Akwa Ibom people getting worried that over the years, the excuse often given by the government when there are gaps in addressing pressing developmental issues have been lack of funds. But that era is in the past; how to spend money has suddenly become a problem in Akwa Ibom State.
Interestingly, this concern expressed by many people has filtered into the ears of the governor. At the Akwa Ibom State Government Exco Ministerial Briefings/ End of the year review which commenced yesterday, the governor showed that he is aware of the complaints about this style of public finance management. He said ” If there is anything people will blame me about, and I am sure you are going to hear more of it as we begin to give you ministerial briefing and I pray the people will be ready to tell us: No release of funds. No release of funds.”
He made some explanations in an attempt to justify the new narrative.
Governor Eno said the gaps in expenditure is experienced because he does not want to fritter away public funds in the process of releasing funds.
“I hold money in trust for Akwa Ibom people and I will always disburse those funds that will address the needs of the generality of Akwa Ibom people, beyond very personal needs. I hold myself accountable to the people of Akwa Ibom State for the funds we have been blessed with, and I will not fritter the funds away in an attempt to play to the gallery”, he said.
While it is very commendable for a public holder to be prudent in financial management, juxtaposing the governor explanation with the revenue portfolio of the State makes it appears the current administration has reached a crossroads in its attempt to translate its bumper revenue into the social and economic programmes the State aspires for and its people badly need.
Government can only spend money on items approved in the budget. Is the governor trying to say that spending money on the items approved for in the budget its administration prepared is playing to the gallery?
A look at the 2024 Approved Budget reveals thousands of projects and programmes that could touch lives hence deserve adequate funding. Yet, the reality? Very little or no expenditure has been made on some of these projects and programmes in the nine months under review. Let’s just consider very few.
A look at the 2024 3rd Quarter Budget Performance Report shows that only a paltry N10m was released as overhead (the day-to-day running) for Secondary Schools across the State out of N201.8m voted in the budget. This is 5.0% release in 9 months.
According to available data, as of 2021, there were 251 government secondary schools in the State. That implies that each Secondary School received N39,840 within 9 months and got N4,426 each month for the running of the school. With these abysmal releases one won’t be surprised over the gross decay seen in many secondary schools across the State coupled with unapproved charges heads of schools are forced to get due to poor funding. Primary schools are not left out. 1164 primary schools together with the State Universal Basic Education Board had to make do with N95.5m out of N903.5m voted (9.5% Performance) within the 9 months period.
In the health sector, while it is commendable that the administration is giving attention to the infrastructural development of primary healthcare, the funding deficit in the running of these Primary Healthcare Centres questions government claims of being cautious not to “frit away money”. For instance, between January and September 2024, only 12 million was spent as overhead cost for the 468 PHCs in the State out of N1.4bn budgeted (0.8% performance). That implies that in the last nine months, each PHC received N25,641 and in a given month they got N2,849 to pay to get vaccines, buy medical consumables needed for patients among other costs. One can see why most of these facilities are handicapped in providing the services they were established for.
What is more, the funds released as overhead cost between January -September 2024 for the 42 General Hospitals, Cottage Hospitals, and Comprehensive Health Centres in the State including the Offices in Hospital Management Board according to the Budget Performance Report was very worrisome. N8 million in 9 months out of N829.5 million voted (1.0% performance).
Regardless, there are some road projects captured in the budget that require urgent funds releases due to the disturbing plight of citizens who reside in these areas. Although these roads are quite many, the abandoned 12.1km Ikot Akpanabia- Inoyo Ikot Ita- Enen Nsit road, 3.6km Mbikpong- Ikot Akpaedu road, Tabernacle Road which are within the Capital City easily come to mind. It is common to hear residents of these areas call in on radio programmes almost daily to ask for government intervention. Yet, in recent years, their budget often remains not implemented even with huge resources available now.
Before the revised budget, the Umo Eno’s administration in its approved budget had voted to spend N849.97bn for everything that appears in the budget within the 2024 fiscal year. 9 months into the fiscal year, the administration already got a whooping N757.17bn funds (89.1% performance). This implies that everything in the budget should have at least experienced 89.1 percent implementation because the money is there.
Surprisingly, the governor in his presentation gave insight into what suggests gaps in creativity within his team in request for approvals. He said “When you hear such idle talk that the governor does not release funds, please don’t believe it. Challenge those with such a narrative to show you the ideas they have brought which will further increase the tempo of our development that were not funded.”.
Who makes requests for approvals for funds to be released as budgeted? Is it the citizens or the governor’s Lieutenants? Does it mean that the Commissioners who make those requests are not convincing enough to the governor for items in the budget to get the necessary releases? If so, the public does not deserve to suffer for the seeming lack of competence from some of these lieutenants of his which he probably may have been referring to. Besides, items in the budget had passed through the State Executive Council headed by the governor before being sent to the House of Assembly for deliberations and approvals. Failure to release funds for the items voted in the budget on the grounds of lack of idea is a serious indictment on the administration.
Our dear governor must appreciate the fact that for any item to be proposed and approved in the budget, there was a need it sought to address. A budget is a law and must be adhered to. Failure to release funds for these needs to be addressed is akin to allowing the people to suffer in the midst of plenty.
These needs are scattered across sectors and the entire 31 LGAs of Akwa Ibom State. It is time the government activates the Bureau of Public Procurement for price intelligence and procurement standards, be intentional in sitting back to review its quarterly budget performance and release the people’s money to address the myriads of problems bedevilling its citizens. We can’t go back to the Yakubu Gowon era who once said during the oil boom that ” Money is not Nigeria’s problem but how to spend it”.
*Ekemini Simon is a journalist, based in Akwa Ibom. The views expressed in this article are those of the author and do not necessarily reflect Pluboard’s position.
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