By Barnabas Augustine
The Adamawa State House of Assembly (ADHA) was presented with a proposed budget of ₦486,218,047,600 by Governor Ahmadu Umaru Fintiri for the year 2025. The proposed budget, christened "Budget of Service," is in line with the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Governor Fintiri revealed that out of the total proposed budget estimate of ₦486,218,047,600, ₦137,256,217,610, which represents 28.23%, is earmarked for recurrent services. The balance of ₦348,961,829,990 (71.77%) of the total projected annual budget is earmarked for capital development programs and services in the state.
In his presentation to the House, Governor Fintiri reviewed the 2024 budget performance, reflecting on what the funds were expended on within the last three quarters of the financial year.
"Out of the total Proposed Budget Estimate of ₦486,218,047,600, the sum of ₦137,256,217,610, which represents 28.23% is earmarked for Recurrent services, while the balance of N348,961,829,990 which is 71.77% of the total Projected Annual Budget is earmarked for Capital Development Programmes and services in the state" Governor Fintiri revealed.
Governor Fintiri, in his presentation to the House, reviewed the 2024 budget performance on what they were expended on within the last three quarters of the financial year to reflect and evaluate past performance.
According to him, the Assembly in late 2023, approved ₦225,893,690,626.00 for the 2024 fiscal year to finance both the Recurrent and Capital expenditure of the state.
"During the 2024 fiscal year, the state received and recorded an additional inflow of revenue to the tune of ₦55,256,595,280.00 of which a supplementary budget was approved bringing the budget size to ₦281,150,285,906.00. Out of this, the sum of ₦134,758,001,526.00 which represents 47.9% of the total Approved Estimate was earmarked for Recurrent Services and ₦146,392,284,380.00 was earmarked to service capital development programmes and services in the state, Governor Fintiri explained. This represents 52.10% of the budget" Governor Fintiri explained.
"It is worth noting that out of the Approved Budget for 2024 financial year, the State Government realized the sum of ₦154,867,434,612.78 as Revenue from all its revenue sources as at 30th September, 2024. The breakdown of the total Revenue shows that ₦91,154,488,233.12 was realized from Statutory Allocation, ₦9,160,540,811.37 from Internally Generated Revenue and ₦42,400,000,000 from Capital Receipts.
"In the same vein, the total sum of ₦154,867,434,612.78 was expended on the various Recurrent and Capital development as at September, 2024. The breakdown of this expenditure is made up of the sum of ₦34,181,772,417.30, expended on Personnel emolument, ₦41,448,082,384.32, on Overhead Cost, and ₦79,237,579,811.16, expended on Capital Development projects and programmes in the state within the fiscal year".
The Governor announced that the Budget of Service for 2025 fiscal year is articulated on the current Macro-Economic indicators of:
1. Statutory Allocation: ₦53,000,000,000
(10.9%)
2. Share of Vat:
₦91,000,000,000
(18.7%)
3. Excess non-oil:
₦12,000,000,000
(2.4)
4. Exchange rate gain: ₦50,000,000,000
(10.3%)
5. Ecological /Flood funds: ₦10,632,000,000
(2.2%)
6. Electronic money transfer: ₦3,500,000,000
(0.7%)
7. State infrastructure & security: ₦42,000,000,000
(8.6%)
8. Signature bonus: ₦60,000,000,000
(12.3%)
9. Other FAAC distribution: ₦48,000,000,000
(9.9%)
10. Independent revenue: ₦24,568,582,500
(5.1%)
11. Capital receipts: ₦91,517,465,100
(18.8%)
Making the total of
₦486,218,047,600
(100%)
The Governor clarified that the proposed budget will be expended on:
1. Personnel Cost: ₦
72,774,125,500.00
(15%)
2. Overhead Cost: ₦64,482,092,110.00
(13)
3.Capital Expenditure: ₦348,961,829,990.00
(72%)
Governor Fintiri further said that the funds in the proposed budget will be allocated to MDAs to touch the lives of the people of the state. While he said that the details of the breakdown of the budget will be made by Ministry of Budget and Economic Planning, he announced the allocation of the proposed budget to the MDAs, namely:
1, Ministry of Works and Energy Development:
₦88,887,728,830.00
2 Ministry of Education and Human Capital Development: ₦40,407,396,580.00
3. Office of the Accountant General: ₦25,877,656,320.00
4. Adamawa State Staff Pension Board: ₦23,973,974,900.00
5. Ministry of Commerce: ₦21,443,404,840.00
6. Office of the Secretary to the State Government: ₦17,960,954,510.00
7. Ministry of Budget & Economic Planning: ₦15,719,763,210.00
8. Ministry of Housing & Urban Development: ₦14,340,067,820.00
9.State Action on Business Enabling Reforms (SABER): ₦14,119,200,000.00
10. Post Primary Schools Mgt Board: ₦14,037,899,740.00
11. Security and Special Services Department: ₦12,963,755,500.00
12. Poverty Alleviation Agency: ₦12,883,600,000.00
13. Ministry of Agriculture: ₦12,695,312,040.00
14. Ministry of Health and Human Services: ₦12,646,274,760.00
15. Ministry of Rural Infrastructure & Community Development: ₦11,060,140,560.00
Governor disclosed that in essence, the 2025 budget aims to improve financial management, modernize budget processes, boost revenue generation, and align with national and international development agendas.
The Governor gave the Capital Expenditure Summary of the 2024 budget as ₦146,392,284,380 out of which ₦79,237,579,811.16 was expended as of 30th September, 2024. He said the
Funds were used for priority projects like infrastructure, education, health, and agriculture.
While on Capital Receipts for the 2025 proposed budget, Governor Fintiri said that his administrator is optimistic that substantial funds will be received in the next fiscal year through world bank and other funding agencies. Adding that the Government also intends to use internal loans to finance some of the priority projects that have high revenue yielding potentials.
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