Delta state Governor Sheriff Oborevwori’s administration has received N626.8 billion as revenue within the first half of the 2024 fiscal year, according to Delta State Budget Performance Report.
The figure is the aggregate revenue the state government received as its share from the Federal Account Allocation Committee (FAAC), Internally Generated Revenue (IGR), other receipts, and the opening balance during the first and second quarters of 2024.
The Budget Performance Report (BPR) is produced quarterly by the Office of the Accountant General of the Delta State and published on the state website.
The report has not yet been audited, however.
In the first quarter of the year, spanning January to March, the report indicated that the Delta state government began the 2024 fiscal year with an opening balance of N103 billion.
Also, within the same period, Mr Oborevwori’s administration received N155.8 billion as FAAC revenue and N35.8 billion as IGR, giving a recurrent revenue of N294.6 billion.
In Q2, the state FACC revenue jumped by almost 100 per cent, from N155.8 billion in Q1 to N300.8 billion in Q2, indicating a 93 per cent increase. However, the state IGR dipped from N35.8 bilion in Q1 to N31.2 billion in Q2, decreasing by 13 per cent.
Total recurrent revenue, including the FAAC revenue and the state’s IGR in Q2, is N332.1bn.
Delta state’s budget for the 2024 fiscal year is N724.9 billion. Of this figure, N316.6 billion is for recurrent expenditures, while N408.4 billion is for capital expenditures.
According to the BPR, the state government estimated N674.6 billion in recurrent revenue, revenues from FAAC and IGR. N564.3 billion was estimated as FAAC revenue, while N110 billion was estimated as independent revenue, otherwise called IGR.
However, in Q1, the state received FAAC revenue amounting to N155.8 billion, representing 27.6 per cent of the budget’s performance. The IGR receipts for the period were N35.8 billion, representing 32.5 per cent of the budget’s performance. Aggregating both figures gives the recurrent revenue for Q1 as N191.6, representing 28.4 per cent of the budget’s estimate.
In Q2, the state government received N300.8 billion, indicating 93 per cent increase when compared with Q1 FAAC revenue which was N155.8 billion. On the other hand, it received N31.2 billion as IGR in Q2, indicating a 13 per cent decrease when compared with that of Q1 revenue, which was N35.8 billion.
Summary of budget performance year-to-date
Year-to-date means the combined revenues received by the state government in Q1 and Q2, from January to June, the first half of the year.
As earlier stated, the state government received N155.8 billion as FACC revenue in Q1 and N300.8 billion under the same subhead in Q2.
Aggregating the FAAC revenue in Q1 and Q2 shows that Governor Oborevwori’s administration has received a total of N456.6 billion within the first half of the year, representing 80.9 per cent as against the 2024 estimate of N564.3 billion.
Analysing the FAAC revenue received in six months (80.9 %) against the estimate shows that the state government may have an excess of FAAC revenue if the trend continues in the last two halves of the year and may have to present a supplementary budget to spend it.
On the other hand, the year-to-date IGR of the state shows that the state government received N35.8 billion in Q1 and N31.2 billion in Q2.
Aggregating the state’s IGR revenue in Q1 and Q2 indicates that Delta State received a total of N67 billion as independent revenue in the first half of the year, January to June, representing 60.8 per cent as against the 2024 estimate of N110 billion.
Again, the figure shows that the state is on track to meeting its IGR target for the 2024 fiscal year if the trend continues, although the figures dipped by 13 per cent from Q1 (N35.8 billion) to Q2 (N31.2 billion).
However, the report shows that the state government has yet to receive any other receipts — aids/grants and capital developments, which it budgeted N38 billion and N2 billion for, respectively.
The report shows that Governor Oborevwori’s administration has received a total revenue of N626.8 billion, representing 86.5 per cent as against its 2024 budget of N724.9 billion. This indicates that the state government requires N98 billion, representing 13.5 per cent in revenue, to achieve its 2024 budget, which indicates that it may have to make provisions for a supplementary budget.
Receiving 86.5 per cent of the yearly estimated revenue within the first half of the year indicates a sound revenue profile for the state. The state government attributed this to the relative peace in the Niger Delta, which has guaranteed a “steady” inflow of oil and gas revenue.
“The relative peace presently enjoyed in the Niger Delta and the contracting of the pipeline security surveillance to private security companies have continued to play a major role in the steady flow and production of crude oil in the state.
“The present government plans of returning the past glory of the city of Warri and its environs have continued to rekindle both economic and commercial activities in the area, thereby boosting the overall IGR base of the state,” the report said.
Meanwhile, of the N626.8 billion revenue received within the year’s first half, the state government has made a total expenditure of N280 billion year-to-date, representing 38.7 per cent as against the budget. It has N444 billion to spend in line with the 2024 budget.
“The overall recurrent expenditure had 46.8% Q2 year-to-date performance as against the approved budget for year 2024. Overhead expenditure had 31.2% budget performance and this is as a result of increase in security activities especially the Okuama/military encounter during the first quarter of the year, while other recurrent expenditure (excluding 2201), which includes social benefits, social contribution, and grants (including Local Government share of IGR) had 56.7% performance rate for the second quarter year-to-date, 2024; other overhead which include public debt charges and principal loan repayment performed at 98.4% social benefit performed at 51.4% and social Contribution performed at 60.8% respectively.
“Personnel cost has a performance rate of 37.5%.
“Capital expenditure budget performance for the second quarter, year to date, stood at 32.4% of the annual capital budget. This shows below average performance of capital expenditure activities for second quarter 2024.
“However, the outstanding Contractual debts inherited by this new administration are being verified as at this quarter,” the report said.
According to the BPR, Delta State Government ended the first half of the year with a closing balance of N346 billion.
Credit: Premium Times
