Pastor Umo Eno, Governor, Akwa Ibom State.
Abasifreke Effiong
The Akwa Ibom state government has posted retained earnings of ₦403.816 billion at the end of the first half of 2024, ended June 30.
The Governor, Pastor Umo Eno, has saved a little above 2/3 (two thirds) of the total revenue collected by the state between January and June.
The total revenue collected within the period was ₦506.543 billion.
A breakdown of the figure as published by the Budget Office in the 1st and 2nd quarters budget performance reports shows that recurrent revenue (FAAC and independent sources) was ₦406.205 billion, opening balance from 2023 (audited figure) ₦98.092 billion, other receipts (aids and grants) accounted for ₦2.246 billion.
From the total revenue, expenditure was ₦166.638 billion only, according to the second quarter report published on Friday 26th August.
A breakdown of expenditures show that ₦100.480 billion was spent on recurrent, while ₦66.157 billion was for capital expenses within the two quarters.
Total revenue within the period represents 59.6% of the approved budget ₦849.970 billion, while the expenditure stood at 19.6% at the close of account for the first half of the fiscal year.
The Umo Eno administration spent ₦90.456 billion only in the first quarter of the year from the available revenue of ₦266.595 billion.
In Q2, the administration spent ₦76.181 billion only from its total revenue of ₦251.039 billion, transferring the balance of ₦197.410 billion to capital account.
With this, the approved capital transfer for 2024 which was ₦270.934 billion is now in surplus by 49% within two quarters. Transfer to capital account was ₦219.743 billion in Q1.
Analysis of the report shows that Governor Umo Eno administration has spent less than 1/3 of the total revenue it received within Q1 and Q2 of this year, implying a 19.6 percent performance of the 2024 budget.
The concluding note in the Q2 report gave some reasons for the low performance.
“The low performance is because some MDAs are yet to make their submissions for the quarter and there are much releases in the month of July which will be reflected in the third quarter report”, the report concluded.
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Meanwhile, when contacted, the Commissioner for Finance, Nsikan Nkan PhD, said the savings made in the two quarters are for capital projects.
“The savings are for payment for some capital projects that are ongoing, and they are also provision for proposed capital projects of the administration”.
“It is believed that by the end of the financial year, a lot of those money would have been used for payment for those capital projects that would have been completed and those that will commence.”
“Some of the capital projects in the budget involve huge amount of money, as such we can’t just carry money and give to people. We have to do meticulous documentation, sign agreement and carry-out due diligence. All these are not things you do in just one day.”
“The Governor has also demonstrated a huge sense of responsibility, a high degree of prudence in spending taxpayers’ money. He is committed to ensuring that there is value for every Kobo spent”, Nkan added.
