Delta State’s N936 billion budget for 2025 is largely dependent on ‘Federal allocation’ and according to an advocacy group New Delta Coalition, this is a warning sign of under development looming.
The group said in a statement at the weekend that internally generated revenue collection is alarmingly low as a large percentage is lost to fraud.
”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,” said the New Delta Coalition statement signed by national coordinator, Godwin Anaughe,
“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 added.
The group urged Gov. Sheriff 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.”
