Obaseki gets N204 billion as revenue in first half of 2024 – Report

Governor Godwin Obaseki’s administration received N204 billion as revenue within the first half (six months) of the 2024 fiscal year, according to the Edo State Budget Performance Report.

The figure is an aggregate of all revenues the state government has received: its own share from Federal Account Allocation Committee (FAAC), Internally Generated Revenue, 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 state in collaboration with the Ministry of Budget and Economic Planning and published on the state website.

The report is, however, yet to be audited.

The BPR indicates that the state government began the 2024 fiscal year with an opening balance of N14 billion in the first quarter (Q1), spanning January to March.

Within the same period, Governor Obaseki’s administration received N71 billion as recurrent revenue.

A breakdown of the figure indicates that the state government received N54 billion as FAAC revenue and N16.9 billion as independent revenue, otherwise called IGR.

In other receipts, the administration received N5 million in aid and grants and N633 million in capital development funds.

Aggregating the figures with the opening balance of N14 billion indicates the state made a total revenue of N85.9 billion, representing 25.1 per cent.

The report also shows that the Edo State Government made a total expenditure of N64.8 billion within the period, leaving a balance of N21.1 billion in the first quarter of the year.

In the second quarter (Q2), the state FAAC revenue recorded a significant leap compared to Q1. In Q2, the FAAC revenue rose from N54 billion in Q1 to N99.4 billion in Q2, representing an increase of 84 per cent. The state’s IGR also recorded a 0.5 increase within the period, from N16.9 billion in Q1 to N17.1 billion in Q2.

Year-to-date budget performance summary

Year-to-date refers to the combined revenues received by the state government within Q1 and Q2, first half of the fiscal year, spanning January to June.

The Edo State Government received N54 billion as FAAC revenue in Q1 of the year and N99.4 billion under the same sub-head in Q2. Aggregating both indicates that the Governor Obaseki administration received N155.5 billion as FAAC revenue within the first half of the year.

On the other hand, the administration received N16.9 billion and N17.1 billion as IGR in Q1 and Q2, respectively. Aggregating both figures shows that Edo State received N34.4 billion as IGR in the first six months of 2024.

Unlike Q1, the state had no revenue from other receipts, like aid/grants and capital development funds, in Q2.

The year-to-date budget performance indicates that the state government generated N204 billion in revenue in the first half of the year.

Analysis of revenue, expenditure performance against 2024 budget

Edo State, the Nigerian sub-national that first announced N70, 000 as minimum wage for its workers had an initial budget of N342.8 billion but was later revised to N407.4 billion apparently to accommodate the new minimum wage. The revised budget represents a 22 per cent increase from the earlier estimate.

According to the BPR, of the N319 billion estimated as total recurrent revenue in the 2024 budget, Governor Obaseki’s administration has received N189.9 billion, representing 59.5 per cent of budget performance in the first half of the year. To achieve the 2024 estimate, the state has to generate at least N129.5 billion, representing 40.5 per cent in the second half of the year.

Of the N243.7 billion budgeted as FAAC revenue, Edo State has received a total of N155.5 billion, representing 63.8 per cent performance, indicating that the state is on course to meet its targeted FAAC revenue for the 2024 fiscal year. The state requires N88 billion (36.2 per cent) to meet its budget target.

For independent revenue, the state government budgeted N75.7 billion as IGR for the year but could only generate N34.4 billion, representing 45.5 percent. The state has to generate N41.3 billion (54.5 percent) to meet its 2024 target. The figure shows a slow IGR record in the first half of the year, indicating that Edo State may not meet its 2024 target unless there is a leap in IGR.

Aggregating FAAC revenue, IGR, other receipts, and opening balance indicates that Mr Obaseki’s administration has received a total of N204.8 billion (representing 50.3 per cent budget performance) as revenue in the first half of the year and requires N202.6 billion, representing 49.7 per cent to meet its 2024 estimate.

Of the revenue figures, Governor Obaseki’s administration has made a total expenditure of N187 billion, representing 49.1 budget performance in the first half of the year. The bulk of the expenditure, amounting to the sum of N121 billion, was made in the second quarter of the year alone.

“With the improvement in revenues from Federal Sources and IGR, the State Government is keen on improving infrastructure, especially as it is in the process of finishing strong,” the report said.