Rivers budget”ll unlock trapped N500bn – PH chamber of commerce

The Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA) has said budget will unlock trapped N500 billion tax revenue from trapped or recovered assets.

The PHCCIMA President, Dr Chinyere Nwaoga, gave the breakdown in a statement on Tuesday, giving its breakdown of the Rivers’ 2025  budget.

She recalled that PHCCIMA had on Dec. 31, 2024 lauded the appropriation bill of 2025 as presented by Rivers governor, Siminalayi Fubara, and promised to analyse the budget.

“We promised to analyse the budget and share our position after extensive research and analysis.

“We set up a think-tank committee to review the monetary policy with the private sector practitioners and we have come up with a position,”she said.

Nwaoga noted that the 2025 total budget approximates N1.2 trillion; to be N388 billion higher than the 2024 figure of N800 billion.

However, she noted that when adjusted for inflation, “the Net Present Value of the current budget is approximately N1.1 trillion.”

 

 

Nwaoga explained that the naira’s depreciation by 90 per cent year on year from January 2024 has reduced the budget’s net value to about N700 billion.

 

According to her, this further illustrates how the fiscal policies at the centre can impact even the best run states.

She commended the Rivers government’s plan to spend N678 billion on capital expenditure, which is roughly 30 per cent more than the operating expenditure.

 

“The plan to allocate N31 billion to Agric and support programmes for youths posits a strategy for genuine empowerment,” she stated.

 

She said: “There may be need to update or recreate a strategic state wide enumeration targeted at Rivers state population.”

 

Nwaoga also suggested that the government should consider allotting a percentage of accrued funds to an investor guarantee programme to attract investment funds aimed at commerce.

She noted that “the policy to explore counterparty funding with the Universal Basic Education (UBE) to support education is smart.”

Nwaoga commended the government’s plan to source and save funds for the budget through various means, including FAAC, IGR, statutory allocation, mineral funds, VAT, refunds, and others.

 

 

 

According to her, the budget demonstrates financial prudence and less emphasis on bank borrowing.

She suggested that the government should re-enact the Rivers State Statutory Savings Account and ensure that assets do not deplete in value.

 

Nwaoga recommended that “we estimate an additional N100 billion, and the expansion of the under-declared and undeclared revenue sources with corporates.”

 

“Rivers state government should emphasise attracting new investments and unlocking value from existing assets,” she said.

 

She, however, urged that the government should continue to pursue clearing the backlog of pension liabilities and consider implementing a revised salary structure to motivate the workforce.