Fubara surpasses FAAC, IGR target, receives N726 billion in nine months – Report

Governor Siminalayi Fubara’s administration in Rivers State has received N726 billion in revenues in the last three quarters of the 2024 fiscal year, according to the Rivers State Budget Performance Report (BPR).

The figure is an aggregate of all revenues received by the state government, including from the Federation Account Allocation Committee (FAAC), Independent Revenue otherwise called Internally Generated Revenue (IGR), Other receipts (Aid/Grant and Capital Development Fund), and the opening balance for 2024.

The BPR is produced quarterly by the Ministry of Budget and Economic Planning, in conjunction with the Office of the Accountant General and Ministry of Finance, and published on the state website.

The report is, however, yet to be audited.

The document shows that from January to September, the state FAAC and IGR surpassed its 2024 budget target, indicating a strong revenue profile for the state despite over a year of political crisis.

Of particular note is that despite the political turmoil and high inflation, the state IGR has ballooned to a record high – generating an average of over N30 billion in the third quarter (Q3) of the year.

Nine months’ revenues against budget

According to the Q3 BPR published on the state government’s website, Rivers State has received a cumulative sum of N720.2 billion between January and September 2024.

Of the amount, the state government has received N597.8 billion, 116.2 per cent as recurrent revenue as against N514.3 billion it budgeted for in the current fiscal year. It has also received N122.4 billion as other receipts – Aid/Grants and Capital Development Fund in addition to its N6 billion opening balance for the 2024 fiscal year.

A breakdown of the recurrent revenue indicates that the state government received a total of N328.7 billion, 116 per cent as FAAC revenue in nine months as against N283.2 billion budget provisions.

Also, the state government has received N269.2 billion, 116.5 per cent as IGR as against N231 billion captured in the budget.

Of the N122.4 billion from other receipts: the oil-rich state received N66.7 billion as grants and aid and N55.7 billion as capital development funds within nine months of the year.

Quarterly revenue profile

Governor Fubara, who was the accountant general of the state before being elected governor of Nigeria’s second richest state has repeatedly acknowledged a leap in the IGR of the state since becoming governor.

For instance, Mr Fubara said the state IGR has jumped from the about N12 billion monthly he met when he assumed office to N25 billion monthly.

A review of the BPR by PREMIUM TIMES shows that the state made over N30 billion as IGR in some months, a development that made BudgIT, a non-profit organisation, rank the state as the only one after Lagos that can survive without federal allocation.

Buoyed by the healthy IGR profile, Governor Fubara recently boasted that a court decision stopping the release of federal allocation to his state was the least of his worries, saying he would continue to pay contractors and workers.

For instance, in the first quarter (Q1) of the year, Rivers State received N101 billion as FAAC revenue and N85.7 billion, representing 37.1 per cent of its budget, as IGR. The figure indicates that the state received an average of N28.6 billion as IGR from January to March.

Also, within Q1, it received N19.7 billion from other receipts – N19 billion as aid/grants and N700 million as capital development fund.

In the second quarter (Q2), the state government received N107.9 billion as FAAC revenue and N78.9 billion in IGR. The figure indicates a decrease of N6.8 billion in IGR from Q1 to Q2.

However, the state recorded a 25 per cent leap in IGR, increasing from N78.9 billion in Q2 to N104.5 billion in Q3. It also recorded an increase in FAAC revenue, from N107.9 billion in Q2 to N119.5 billion, indicating a 9.7 per cent increase.

Budget

The Rivers State Government has a budget size of N800 billion for the 2024 fiscal year. Of the figure, Governor Fubara’s administration has received a total of N726 billion in revenue within nine months indicating that the state government needs a paltry sum of N74 billion in revenue in the last quarter of the year – October to December to balance the controversial budget whose validity will be decided by Nigeria’s highest court – the Supreme Court.

PREMIUM TIMES arrived at N726 billion as total revenue by taking aggregate revenues from FAAC, IGR, other receipts, and opening balance.

Regarding expenditure as of Q3, the state government has expended N529.8 billion, representing 66.8 per cent against the budget.

The report indicates that the oil-rich state is waxing stronger in revenue generation despite a political turmoil that has factionalised it and battered the state legislature.