Rivers State Governor Sir Siminalayi Fubara has presented a historic budget proposal of N1.19 trillion for the 2025 fiscal year to the Rivers State House of Assembly. Dubbed the “2025 Budget of Inclusive Growth and Development,” the plan underscores a strategic commitment to infrastructure and human capital advancement.
In his address to the 10th Assembly, led by Speaker Rt. Hon. Victor Oko-Jumbo, Governor Fubara outlined the budget’s ambitious goals, emphasizing sustainable development and the well-being of all residents.
2024 Success as a Foundation
Governor Fubara highlighted the full implementation of the 2024 budget, which totaled N800.39 billion. He noted that the administration achieved 100% performance across both recurrent and capital expenditures despite macroeconomic challenges, including inflation, naira devaluation, and national political instability.
Key Features of the 2025 Budget
The proposed budget allocates:
- Recurrent Expenditure: N462.25 billion (44%)
- Capital Expenditure: N678.09 billion (56%)
- Planning Reserve: N35.69 billion
- Closing Balance: N12.93 billion
With a 44:56 recurrent-to-capital expenditure ratio, the Governor reaffirmed his administration’s focus on infrastructure and people-oriented development.
Economic Assumptions and Objectives
The 2025 budget is built on key economic assumptions, including:
- Oil price benchmark of $80 per barrel
- Oil production rate of 1.8 million barrels per day
- Exchange rate of ₦1,500 per US dollar
- Projected inflation rate of 22%
Governor Fubara aims to boost GDP growth to 3.18%, increase internally generated revenue (IGR) to at least 35% of total revenue, and reduce fiscal deficits by minimizing domestic borrowing.
Revenue Sources
The budget will be funded through diverse channels, including:
- Internally Generated Revenue (IGR): N264.37 billion
- Statutory Allocations: N18.20 billion
- Mineral Funds: N132.17 billion
- Value Added Tax (VAT): N204.26 billion
- Refunds and Other Receipts: N154.54 billion
Additional funds are expected from forex equalization, exchange rate gains, and other federal allocations.
Recurrent Expenditure Breakdown
The N462.25 billion allocated to recurrent spending includes:
- Personnel costs: N169.67 billion
- New recruitments: N49.14 billion
- Overhead costs: N20.14 billion
- Grants and subsidies: N9.60 billion
- Pension contributions: N15 billion
Governor’s Vision for Development
Governor Fubara emphasized expanding the state’s tax base, enhancing revenue collection, and prioritizing investments in critical sectors to strengthen Rivers State’s economic foundation.
“This budget reflects our unwavering commitment to advance the state’s development and deliver sustainable improvements in the lives of our people,” he affirmed.
