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Saturday, November 16, 2024

Budget: Concerns raised over alleged fraud eroding Delta’s IGR

The group described the budget as a “collect-federal-allocation-account committee-and-spend approach.”

• November 16, 2024
Delta Governor, RT. Hon Sheriff Oborevwori
Delta Governor, RT. Hon Sheriff Oborevwori [Photo: Facebook/ Sheriff]

The New Delta Coalition, a pressure group, says Delta’s internally generated revenue in the N936 billion for 2025 budget is alarmingly low compared to previous years.

A statement on Saturday in Asaba by the group’s national coordinator, Godwin Anaughe, alleged that the state’s financial system was mired in widespread fraud in revenue collection.

The group said the 2025 budget proposal presented by Governor Sheriff Oborevwori to the State House of Assembly on Thursday showed “heavy” reliance on federal allocations and external revenue sources.

The group described the budget as a “collect-federal-allocation-account committee-and-spend approach.”

”With a projected internally generated revenue collection of N140 billion, the IGR is alarmingly low because it accounts for only 15 per cent of the total budget. It shows that the state’s IGR has stalled, indicating potential underreporting and widespread fraud in revenue collection.

“This indicates a heavy reliance on federal allocations and external revenue sources when compared to other states like Lagos, FCT, Rivers and Ogun, which have achieved significantly higher IGR figures. In 2023, the IGR of N87.6 billion for the period January to September accounted for 17.35 per cent of the total budget.

This year’s IGR accounts for a meagre 16.35 per cent of the approved budget. Next year’s figure of 15 per cent confirms a negative trend that raises serious red flags about the state’s financial management,” the group said.

According to the group, the revenue collection system established during former Governor Ifeanyi Okowa’s tenure, where party chieftains act as consultants, collect revenue, and remit a percentage to the government, has failed woefully.

“The low IGR is a clear indication of successive administrations’ failure to drive economic growth and diversification, as well as explore alternative revenue streams beyond oil and gas. This lack of self-sustenance undermines the state’s economic potential,” the group said.

The group classified the state’s 2025 budget projection as primarily driven by increased FAAC allocations and a “blatant attempt to obscure the truth about the state’s financial struggles.”

The group noted that Delta’s economic potential, driven by its rich natural resources, including crude oil and natural gas, remained largely untapped.

It also mentioned that failure to harness its tourism potential, despite boasting beautiful landscapes and cultural attractions, was a missed opportunity for revenue generation.

The group urged Gov. Oborevwori to capitalise on opportunities presented by President Bola Tinubu’s economic reforms, which had boosted FAAC allocations and agricultural prices.

”By introducing reforms and initiatives promoting farming, food processing, and basic infrastructure, Delta can break free from financial constraints and secure sustainable growth for its citizens,” the group added.

(NAN)

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