Delta State has proposed a 2025 budget of N936billion tagged: “Budget of fiscal consolidation” as presented by Governor Sheriff Oborevwori before the state House of Assembly. The budget, which marks a 29 percent increase in expenditure from the 2024 appropriation, aims to address various development challenges facing the state. While it highlights increased capital expenditure, it has however, drawn mixed reactions from stakeholders.
Firing the first salvo, the New Delta Coalition expressed concerns over the consecutive drop in the state’s projected internally generated revenue, which makes only 15 percent of the total N936.08 billion, blaming the internal revenue drop on under-reporting and widespread fraud in revenue collection. The coalition through its spokesman, Mr. Godwin Anaughe, berated the state government’s heavy reliance on federal allocation and external revenue sources. It asserted that Delta State’s internal revenue hasn’t only stalled, but is spiraling downward consistently, from N87.6 billion, accounting for 17.35 percent of the total budget for 2023, 16.35 percent in the 2024 budget and 15 percent as contained in next year’s appropriation.
“Indeed, under Okowa’s tenure, where party chieftains act as consultants collecting revenue and remitting a percentage to the government, has failed woefully. The low internally generated revenue is a clear indication of successive administrations’ failure to drive economic growth and diversification, as well as explore alternative revenue streams beyond oil and gas. This lack of self-sustenance undermines the state’s economic potential,” the group declared. It classified the state’s 2025 budget projection as primarily driven by increased FAAC allocations, adding that it is a blatant attempt to obscure the truth about the state’s financial struggles.
Also, the All Progressives Congress (APC) in the state has criticized the 2025 budget, describing it as a collection of vague promises devoid of measurable objectives. The faulted the allocation of 65 percent of the state’s proposed expenditure in the appropriation for capital projects, a proposal it said is unsustainable, but pave the way for government officials to engage in corrupt practices. APC Publicity Secretary in the state, Valentine Onojeghuo, in a statement, while highlighting the state’s heavy reliance on federal allocations to fund the budget, further observed that the situation is further compounded by the poor internally generated revenue projections in the 2025 budget.
The party argued that the government’s failure to address declining internal revenue generation, suggests an inability to effectively finance the proposed capital projects, potentially leading to increased debts and a plethora of uncompleted projects. “Without a strong and sustainable increase in internally generated revenue, there is every likelihood that the state government will be unable to fund its capital expenditure plans, potentially leading to debt accumulation for which the state is notorious,” Onojeghuo said. He therefore advised the state government to prioritize revenue collection and diversify income sources to ensure financial stability and the execution of human capital development initiatives.
The lopsided nature of the budget also drew the ire of the APC. It accused the Oborevwori administration of neglecting critical sectors, such as education, healthcare, and social services. The opposition party further criticized the budget for lacking transparency and measurable objectives, describing it as a document filled with broad categories and little detail on funds allocation or expected economic impacts. “This opacity raises concerns about accountability and the proper management of state resources,” Onojeghuo added. Moreover, he said the appropriation fails to provide targeted funding for job creation and support for local businesses, labeling it a missed opportunity to address the state’s economic challenges.
Emeka Nwokocha, a journalist and political affairs analyst, reacting to the budget, criticized the allocation of N7 billion to agriculture, which constitutes less than one percent of the total budget. He described the underfunding as a persistent issue that undermines food security and poverty alleviation in Delta State. “The N7 billion allocation to agriculture is far below the Maputo Declaration’s recommendation of 10 percent. This underfunding has been consistent over the years, undermining food security and raising doubts about the government’s commitment to tackling poverty and hunger in Delta State. Unless the government ensures timely and transparent fund releases to key sectors like agriculture, the budget may fail to alleviate the hardships faced by ordinary citizens,” Nwokocha stated.
Secretary General of the Ewu Clan Development Forum, Pastor Edewor Ogedegbe, said after assessing the budget, he found it difficult to pin down any significant projects, saying that “apart from the normal jibe of government propaganda that we see everywhere, it’s hard to point to tangible outcomes. The proposed 2025 budget is about N194 billion higher than the current one. While that is notable, allegations of mismanagement, like the unaccounted for N1.3 trillion from the 13 percent derivation funds during the last administration, raise concerns about the government’s ability to instill hope. The only thing that gives me a little hope is the allocation to capital expenditure which is higher than the recurrent expenditure which is a total departure from the norms.”
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Mabel Ijomoni, a trader, expressed cautious optimism about the proposed budget. “N936 billion. I don’t actually know, as I’m not current with the affairs of the state, but with that amount of money, if we truly have such funds in this state, I believe it would go a long way in improving the state as a whole. However, I am a market woman and don’t know much about these things. But if we indeed, have that kind of money, I believe the government can use it to provide us with good roads, proper structures in our markets, and in our communities. We need quality health centres. These things would greatly improve our lives in this state. That amount can significantly enhance the lives of the citizens of this state. I am hopeful—though, if they don’t steal the money and instead put it to proper use. If the government can stand by their words and properly implement the budgeted funds to take care of the state, I believe the state will become a better place for everyone,” she added.
Following the controversy that the budget has generated, members of Gov. Oborevwori administration have stepped up in defence of the budget. Smart Ufoh, the Commissioner for Technical Education, praised the administration’s focus on education through the upgrading of five out of the nine technical schools in the state. His counterpart in-charge of transport, Onoriode Aguofure, expressed optimism about the potentials for technological advancements in the sector. “We’re expecting a lot of new innovations, new initiatives that would improve the transportation sector. We’re trying to use more technology to drive the policies and progress of the transportation sector in Delta State. One of the things we want to introduce is the automatic number plate recognition system. It will use technology and cameras at specific and strategic locations. It will capture those that beat traffic lights, and this will reduce interface or face-to-face confrontation with enforcement agencies,” Aguofure said.
Also, the Commissioner for Oil and Gas, Peter Uviejitobor, described the budget as satisfactory. “It’s a budget of hope for my ministry. Our envelope was trimmed down. At the presentation, it was adjusted up a bit. The budget was in four categories. It was based on revenue proposal, personnel costs, non-regular overhead proposal, and capital budget, which had a ceiling of N500 million. It’s increased to N600 million. I know with what has been given us, and in line with all the items we spoke about, we are sure there will be an increase in revenue generation, improvement in youth sensitization, and improvement in local content,” Uviejitobor explained.
Not to be outdone in responding to critics of the budget, Felix Ofou, the Executive Assistant on New Media to Gov. Oborevwori, opined that the vituperation on the 2025 budget follow a familiar refrain, declaring that criticisms are riddled with inanities, distorted facts and manipulations which seek to portray the Gov. Oborevwori as incompetent and unable to rule the state. He insisted that allegations of the dwindling internally generated revenue were misleading and false, as in his view, the state’s internal revenue has grown in leaps and bounds. Ofou said the Delta State Internal Revenue Service (DSIRS) exceeded its revenue target for 2024 in nine months, as the agency for the previous year. “Clearly, the projected N140 billion for 2025 will be surpassed. And in terms of lump sum, the internally generated revenue contribution to the budget is higher, even though smaller when rated in percentages,” he said.
According to him, the Oborevwori administration deserves commendation for its courage not borrow to fund the 2025 budget, just as it has resisted the urge to source money from external sources to fund ongoing projects. “Indeed, the governor has displayed uncommon traits of prudence, frugality and discipline in the management of the state’s resources and therefore deserves to be roundly applauded,” Ofou concluded.
