Policy Alert Highlights Red Flags in Cross River State 2025 Proposed Budget
Policy Alert, a civil society organisation working to promote fiscal and ecological justice in Africa has highlighted issues of concern in the 2025 proposed budget of Cross River State.
Governor Bassey Otu of Cross River State on October 29, 2024 had presented to the State Assembly N498 billion as the proposed budget for the 2025 fiscal year. The budget is currently under consideration at the State Assembly.
After a comprehensive review of the proposed budget, Policy Alert on Tuesday through a press release signed by its programme officer, Governance Reforms and Anti-corruption
Faith Paulinus, said it is disturbing that about a quarter (24.7%) of the 2025 proposed budget will be financed through Loans /Borrowing Receipt amounting to N123.04bn ( Domestic loans – N114.59bn and Foreign Loans – N8.45bn)
The release said why it is not out of place to take loans to finance the budget, heavy loans may plunge the State back into a State of debt unsustainability based on the State’s Internally Generated Revenue hence the need for the State Assembly not to approve the N123.04bn rather significantly reduce it.
” According to the debt management office, Cross River State is the sixth most indebted State in Nigeria as regards domestic debt amounting to N155.49bn. If the proposed loan is approved, this will significantly increase the debt burden of the State and cannot be liquidated by the low Internally Generated Revenue portfolio of N43.38bn projected in 2025.”
While commending the State Government for a 26 percent increase in the proposed budget for the Social Sector in comparison to 2024 fiscal year, the release identified some proposed expenses it described as controversial and posturing the budget as budget for the elites.
” It is worrisome that after the State Government had spent N2.37bn between January and September 2024 for the Purchase of 30No SUV, Hyundai Elantra, Prado Jeeps (Political & General) through Office of the Chief of Staff, in the 2025 proposed budget, N500m is voted again. Also, after spending N630m for the purchase of 50No Hyundai Elantra, Prado Jeeps Vehicles for MDAs through Office of Chief of Staff in 2024, N500m is proposed for 2025.
” It is also of concern that after spending N1.1bn in 2024 for the rehabilitation of Governor’s Offices, N200m is voted again for 2025. For 2024, N500m is spent on renovation of Governor’s Lodge yet N100m proposed again for 2025. We have also seen how N1.47bn has been proposed for the purchase of 28 numbers of Toyota Prado Vehicles for the House of Assembly Members implying that each jeep will cost N52.5m. Of immense curiosity is that 10 numbers of SUV Jeeps, Hyundai Elantra Vehicles have been proposed to be purchased with N1bn for the Cross River State Judiciary. Does this mean that each of the vehicles will cost N100m?
Policy Alert called on the State Assembly to scrutinise the 2025 budget through the lens of the general interest of Cross Riverians and not the interest of the elites. It recommended that some of the controversial budget line items identified in the Administrative Sector should be rechanneled to improve the proposed budget of key sectors such as Education, Health, Water, Sanitation and Hygiene and Agriculture.