Gov Eno gets N519billion as revenue in first half of 2024

According to the state budget performance report, Governor Umo Eno administration has received N519 billion as revenue within the first half of the 2024 fiscal year.

The figure is the aggregate revenue the state government has received from the Federal Account Allocation Committee (FAAC), Independent revenue, internally generated revenue (IGR), capital receipts, and the opening balance within the first and second quarters of the year.

The Budget Performance Report (BPR) of the state government is prepared quarterly and published by the Budget Office. This state government department prepares, monitors, evaluates and facilitates the execution of budget policies.

An analysis of the report indicates that though the state FAAC revenue jumped by almost a hundred per cent in the second quarter, from N132.9 billion in the first quarter (Q1) to N241.5 billion in the second quarter (Q2), its IGR dipped by over 50 per cent, decreasing from N22 billion in Q1 to N9.5 billion in Q2.

For the revenue from FAAC, the state government is moving towards achieving 100 per cent of its 2024 budgetary provision within the first half of the year, as it has so far received a total sum of N374 billion, representing 73.4 per cent of N510 billion budgetary estimate.

The total by tallying figures from the state’s first and second-quarter budget performance reports.

However, the report has not yet been audited.

Budget, half-year revenue analysis

Governor Eno, last December, signed into law the state’s 2024 budget of N849.970 billion, which represented 0.5 per cent less than the 2023 revised approved budget of N850 billion.

The budget comprises N359 billion in recurrent expenditure and N490 billion in capital expenditure.

Mr Eno has an ambitious economic blueprint focused on agricultural revolution rural development, a policy he said will stem the tide of rural-urban migration, infrastructural maintenance and advancement, security management and educational advancement.

Budget performance summary

According to the Q1 budget performance report, the state government began the 2024 fiscal year with an opening balance of N111 billion.

Within Q1, the state government received an aggregate revenue inflow of N155 billion from FAAC and IGR, representing 27.2 per cent performance against the approved provision of N570 billion of the total amount estimated for FACC and IGR in the budget.

A breakdown of the aggregate inflow indicates that the state government received the sum of N132.9, representing 26.1 per cent of the approved statutory allocation of N510 billion provisions in the budget as FAAC revenue and N22 billion as IGR, representing 37.1 per cent of the N60 billion provisions in the budget.

Aggregating the three–opening balance of N111 billion, FAAC revenue of N132.9 and IGR of N22 billion – indicate that the state government had N265.9 billion to its credit within Q1.

The budget performance report shows that the total recurrent expenditure in Q1 stood at N46.9 billion, indicating 13.0 per cent performance against the N359 billion provisions in the budget, while capital expenditure for the period was N43 billion, representing 8.9 per cent performance as against the N490 billion estimated provisions.

The report, however, stated that the figure was low as documentation of projects awarded during the quarter was still being concluded.

Second Quarter (Q2) revenue analysis

In Q2, April to June, the state government recorded a leap of almost a hundred per cent in FAAC revenue compared to Q1, indicating the government is a little short of achieving its 100 per cent revenue target from federal allocations.

According to the report, the Q2 aggregate revenue inflow from FAAC and IGR stood at N251 billion, while the performance year-to-date is N406 billion, representing 71.3 per cent performance against the N570 billion budgetary provisions.

Year-to-date indicates the combined revenue in Q1 and Q2, from January to June, the first half of 2024.

A breakdown of aggregate revenue for Q2 shows that the state government received FAAC revenue of N241.5 billion while performance year-to-date is N374 billion, representing 73.4 per cent of the N510 billion budgetary estimate.

However, in terms of independent revenue (IGR), the state government got less than half its share in Q1. In Q2, the IGR stood at N9.5 billion (as against N22 billion in Q1), while the performance year-to-date is N31.7 billion against the N60 billion estimate, representing N52.9 per cent.

Unlike in Q1, when the state government recorded no capital receipt, in Q2, the capital receipts inflow was N2.3 billion against N219 billion provisions in the budget.

Aggregating the first half (Q1+Q2) revenues for the state government indicates that the state government within the period under review got N519 billion, comprising the year-to-date total FAAC and Independent revenue (IGR) of N406 billion, opening balance of N111 billion and the capital receipts of N2.3 billion.

According to the Q2 budget performance report, recurrent expenditure is N53.6 billion while the performance year-to-date is N100 billion, representing 30.2 per cent performance against the N359 billion budgetary estimate.

“The total Capital expenditure captured for the second quarter is N22.6 billion while the performance year-to-date is N66.2, which represents 13.5 per cent performance against the approved provision of N490.9.”

Again, the report stated, “This is still low as documentation of projects awarded during the quarter are still being concluded.”

The report rated the budget performance as low and attributed it to some MDAs (ministries, departments, and agencies) that have yet to submit for the quarter.