Governor Otu and Cross River’s 2025 Budget Proposal

By Michael Jegede

On October 29, 2024, Governor of Cross River State, Senator Bassey Edet Out, presented a budget proposal (Appropriation Bill) of N498b for the 2025 fiscal year to the State House of Assembly for legislative scrutiny and approval in line with the provisions of the 1999 Constitution (as amended).

While presenting the 2025 Appropriation Bill tagged “Budget of Sustainable Growth” to the state parliamentarians in Calabar, Otu, fondly referred to as Sweet Prince, had disclosed that the sum of N328 billion, representing 66% of the total budget size, was allocated to capital expenditure, and N170b representing 34% of the entire budget figure was earmarked for recurrent spending.

The sectoral allocations as revealed from the budget presentation by the governor were: Infrastructure – N100 billion; Education – N81 billion; Health – N25 billion; Judiciary – N20 billion; House of Assembly – N18 billion; Aviation – N16 billion; Special duties/intergovernmental affairs – N15 billion; Power – N14 billion; Agriculture – N11 billion; Tourism – 5 billion; Science, Technology and Innovation – N4.7 billion; Women Affairs – N3.7 billion; Information – N3 billion and Others – N181.6 billion.

Stating that the main revenue sources the Cross River government would be relying on to finance the 2025 budget include federal allocations, grants from international organisations and Internally Generated Revenue (IGR), Otu had divulged: “The 2025 Budget just like that of 2024 is benchmarked on the Sustainable Development Goals (SDGs). The decision to continue with the SDG benchmark is to guarantee continuity of projects and programmes which were not completed in this current budget cycle, hence, the need to roll over to the 2025 fiscal year.

“For this reason, we have deliberately placed emphasis on SDG 9 -Industry, Innovation & Infrastructure; SDG 4 – Quality Education; SDG 3 – Good Health and Well-being; SDG 2 – Zero Hunger and SDG 16 -Peace, Justice and Strong Institution.”

He continued: “Infrastructure – In pursuance of the achievement of SDG 9, coupled with the realization of the fact that, the provision of relevant infrastructural facilities is the foundation for sustainable economic growth, the State government will continue to construct roads and bridges, rail lines/support facilities. Besides, the existing industries with accompanied employment potentials will be reactivated. In addition to the foregoing, my administration is intentional in creating partnership that works with the private sector to drive our State’s Industrial Revolution. This informed the unprecedented budgetary allocation of N100b to the sector.

“Education: With the present literacy rate of about 80.03%, we are targeting a 98% rate by the end of my administration. So, going by the numerous programmes and projects earmarked for execution, the SDG 4 (Quality Education) is an achievable milestone within the time frame.

“We shall continue with the free and compulsory education from primary to Junior secondary level and the payment of WAEC fees for students in our public schools. Technical education will be given priority attention, so as to produce job-creating graduates rather than job seekers.”

He added: “Health: The SDG 3 – Good Health and Well-being is aligned to our integrated health care services. From primary to tertiary health care delivery will be pursued with renewed aggression to reduce mortality rate of our people, most especially infants and pregnant mothers. While, the structural facilities in our health sector are gradually getting to the level of sufficiency, the provision of medical equipment and consumables will be our focus in 2025.

“Agriculture: There is no food security without agriculture and Zero Hunger (SDG 2) can only be achieved through the combined efforts of the small-holder farmers and the mechanized agriculturists. In the 2025 budget, my administration has put necessary support services ranging from agricultural equipment, single-digit interest loan and grants. Besides, the improved palm seedlings currently in distribution free of charge to new and existing farmers, is just the tip of the iceberg compared to what is planned under the cash crop revolution programme in the 2025 budget. The value addition of our farmers’ produce will be enhanced through private partnership in the establishment of agro-allied industries and the resuscitation of the ailing cottage industries.

“The Judiciary – Justice for all is a legal aspiration of every citizen of the State; and this hope can only materialize if the judiciary is strengthened to perform its statutory duties and responsibilities. To this end, judicial officers, courts/appurtenances are given due attention in the 2025 budget. The burden of justification of the huge interest and concern this administration place on this Arm of Government, rest squarely on them.”

The Appropriation Bill which after due deliberation and subsequent passage by the state assembly, becomes Cross River 2025 budget with the assent of the Governor, reportedly scaled through seconding reading about two weeks ago and referred to the Committee on Finance and Appropriation.

The Speaker of Cross River Assembly, Rt. Hon. Elvert Ayambem was reported to have asked the Finance and Appropriation Committee to do a painstaking job and get back to the House by December 7, 2024. He equally urged all members of the Assembly to endeavour to be part of the budget defense exercise for Ministries, Departments and Agencies (MDAs) in their different committees.

Speaking on the merits of the appropriation bill at the second reading, the Leader of the Cross River House of Assembly, who represents Odukpani State Constituency, Rt. Hon. Francis Bassey Asuquo, applauded Governor Otu for the sectoral allocations prioritizing infrastructure, education and health. Other legislators, who also commented, praised the governor for coming up with a realistic budget, which they believe would significantly enhance socio-economic growth and development in the state.

As a way of carrying the people along in the process of putting up the budget document, the Otu-led government had organised a series of consultative forums across the three senatorial Districts in Cross River State at the preparatory stage for the 2025 budget proposal. The budget consultative forums were meant to gather input from residents, ensure inclusivity and a reflection of the people’s needs, yearnings and aspirations in the budget.

In one of the said fora, which assembled community members, religious leaders and traditional rulers, the Special Adviser (SA) to Governor Otu on Budget Monitoring and Evaluation, Mr. Otu Otu-Ita, was quoted as saying that “We cannot continue to sit in Calabar and decide what projects should be implemented in different villages, the people in Calabar cannot know what the man in Ishibori, Ukelle, or Obudu truly needs.

“The era of the government deciding what the people want is over. Now, it is about the people telling the government their most pressing needs, which the government will strive to address in 2025.”

Otu-Ita in an interview said “The 2025 budget is designed to meet the people’s needs and take them out of poverty. The main impact the 2025 budget would have is that by 2025 our people would be gainfully employed looking at the various sectoral allocations in the proposed budget presented by our amiable governor who remains fully determined and committed to bettering the lives of Cross Riverians.

“The very interesting thing about the 2025 budget that is before the State Assembly for legislative approval is that the people took ownership of the document. It is the people’s document as a result of the participatory approach that was adopted in the process of preparation where the voices of the people were directly captured through the budget consultative forums that we organised across the southern, northern and central senatorial zones of the state. It drew participation from different groups and stakeholders. So, the 2025 budget proposal is a product of consultations and consensus, aggregating the views of the people regarding their needs.”

Speaking on the performance of the 2024 budget, the special adviser noted: “The 2024 budget size as initially signed into law was N296b. In the course of implementation of the budget, there was need for it to be reviewed due to inflationary pressure triggered by certain factors. Hence, a supplementary budget of N141 billion was made which brought the total budget for 2024 to N437 billion.

“As we await the parliamentary endorsement of the 2025 proposed budget, I can tell you that the 2024 budget is performing well. Its implementation is progressing well. N73 billion has been expended on the servicing of debts which included the N10 billion approved by the governor for the settlement of the backlog of gratuities owed retirees for years.

“See the level of infrastructural development going on in the state. The construction, rehabilitation and maintenance of roads, the General Hospital that is being built in Ikom and the many other projects being embarked upon by Governor Otu’s administration.”

The governor has been hailed for creating a budget that truly represents the people’s interests which to many is a clear demonstration of his People-First approach to governance.

Former Clerk of the Cross State House of Assembly, Mr. Adie Akabisong, was for instance, quoted to have remarked that “The level of inclusion in this administration has been very high. It is something Cross Riverians have been longing for.

“This forum is giving the people the opportunity to lend a voice to the budget process of how income will be generated and taxpayers’ monies spent for the betterment of the state.”

Michael Jegede, a journalist, writes from Abuja