Fubara Exceeds FAAC and IGR Targets, Receives N726 Billion in Nine Months – Report

Governor Siminalayi Fubara’s administration in Rivers State has collected N726 billion in revenue over the first three quarters of 2024, according to the state’s Budget Performance Report (BPR).....Read Full Article>>

This figure represents the total revenue received by the state government, encompassing funds from the Federation Account Allocation Committee (FAAC), Internally Generated Revenue (IGR), additional receipts (such as Aid/Grants and Capital Development Funds), and the opening balance for 2024.

The BPR, compiled quarterly by the Ministry of Budget and Economic Planning in collaboration with the Accountant General and the Ministry of Finance, is published on the state’s website. However, the report has not yet been audited.

The report highlights that, from January to September, Rivers State exceeded its 2024 budget targets for both FAAC and IGR, indicating a strong revenue position despite ongoing political challenges.

Notably, the state’s IGR reached a record high, averaging over N30 billion in the third quarter of 2024, a remarkable achievement despite inflationary pressures and political instability.

Revenue Breakdown

According to the Q3 BPR, Rivers State received a cumulative total of N720.2 billion between January and September. Of this, N597.8 billion came from recurrent revenue, exceeding the N514.3 billion budgeted for the period, and N122.4 billion was generated from other receipts, including Aid/Grants and Capital Development Funds. Additionally, the state began the fiscal year with a N6 billion opening balance.

A detailed breakdown shows that the state earned N328.7 billion in FAAC revenue, 116% of its N283.2 billion target. IGR contributions amounted to N269.2 billion, which was 116.5% of the N231 billion budgeted. From other receipts, Rivers State received N66.7 billion in grants and aid, and N55.7 billion in capital development funds.

Quarterly Performance

Governor Fubara, who previously served as the state’s accountant general, has regularly highlighted the significant increase in the state’s IGR since his administration began. When he took office, the IGR was around N12 billion per month, but it has now risen to N25 billion per month. In some months, the state has surpassed N30 billion in IGR, positioning it as one of the few states capable of functioning without federal allocations, alongside Lagos.

For instance, in Q1 2024, Rivers State earned N101 billion in FAAC revenue and N85.7 billion in IGR, representing 37.1% of the budget. In Q2, FAAC revenue increased to N107.9 billion, while IGR dropped slightly to N78.9 billion. However, in Q3, the state saw a 25% increase in IGR, reaching N104.5 billion, along with a 9.7% rise in FAAC revenue to N119.5 billion.

Budget and Expenditure

The state’s 2024 budget is set at N800 billion, and with N726 billion already collected in revenue, the government needs just N74 billion in the final quarter to meet its target. However, the validity of the 2024 budget is pending a decision from Nigeria’s Supreme Court.

As of Q3, the state government has spent N529.8 billion, representing 66.8% of the budget. Despite political upheaval and challenges to the state’s legislative functions, the report indicates that Rivers State is making significant progress in revenue generation.