Home News Akwa Ibom Budgets N582.115 billion for 2022, to Purchase 10 Brand New...

Akwa Ibom Budgets N582.115 billion for 2022, to Purchase 10 Brand New Airbus for Ibom Air

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Gov Udom Emmanuel

By Andy Esiet, Calabar

Akwa Ibom state government has proposed spend a total of N582.115 billion for the 2022 Financial Year as against the approved revised provision of N598.975 of 2021 representing a decrease from the 2021 revised budget.

The state governor, Mr. Udom Emmanuel who announced this today while presenting the state’s 2022 budget proposal christened the “Budget of Re-defining Standards” to the State House Assembly, said “the Budget is prepared in accordance with International Public Accounting standard (IPSAS) Accrual template”.

He said, the 2022 budget size is made up of: “Recurrent Expenditure  – N260.151 billion, Capital Expenditure  – ₦321.964 billion totalling  – ₦582.115 billion while the state government’s total projected Recurrent Revenue for 2022 is estimated at ₦273.854 billion as against the approved revised provision of ₦260.003 billion representing 5% increase in revenue projection for the year 2022.

“For the 2022 Fiscal Year, Recurrent Expenditure which is proposed at ₦260.151 billion is made up of:

i.) Personnel Cost  –   ₦70.583 billion

ii.) Overhead Cost  –   ₦117.668 billion

iii.) Social contribution & Benefit  –   ₦20.500 billion

iv.) Grant, Contribution & Subsidies  –   ₦1.200 billion

v.) Public Debt Service  –   ₦50.200 billion

Total Recurrent Expenditure  –   ₦260.151 billion”

On capital expenditure , he said, “the total Capital Receipts and Expenditure for the year 2022 is estimated at N321.964 billion as against the approved revised provision of N344.873 billion for 2021. A total projected Capital Receipts shows that N13.703 billion will be transferred from the Consolidated Revenue Fund, while the balance of N308.261 billion is to be realized as follows:

i.)  Opening Balance from 2021 account  –   ₦26.000 billion

ii.) Direct Credit Substitute/Receivable

     Discounting facility  –   ₦60.000 billion

iii.) External Bank Loan –   ₦3.990 billion

iv.) Grants –   ₦24.168 billion

v.) Ecological Fund  –   ₦25.000 billion

vi.) Reimbursement from Federal Govt. on Roads   –   ₦15.000 billion

vii.) Investment Income   –   ₦0.200 billion

viii.) Other exceptional Income  –   ₦15.000 billion

ix.) Stabilization Account      –   ₦1.000 billion

x.) Refunds from Federal Govt/Federation Account  –   ₦137.903 billion

Total  –   ₦308.261 billion”

Emmanuel presented the sectoral allocation of the total budget outlay of N582.115 billion for the year 2022  as follows: Administration N132.565  (22.8 percent); Economic N 347.349 (59.7 percent); Law and Justice N 10.378  (1.8 percent); Regional N1.991 (0.3 percent); and Social N89.832  (15.4percent) totalling N 582.115 billion (100.0 percent).

He explained that “the 2022 Budget is predicated on an oil benchmark of $57 per barrel at a production rate of 1.88 million barrels per day with an estimated exchange rate of ₦410.15/US$, in line with the National Budget benchmark projections.

“The National Gross Domestic Product (GDP) has been projected at 4.2% growth rate with National inflation rate of 13%. It is important to note also that the State inflation figure is below the national average. This is due to the State Government’s persistent intervention measures in the agriculture subsector to halt and reverse the rising cost of food commodities in Akwa Ibom State”.

He stated that, “the policy thrust of the 2022 Budget will focus on the 8-Point Completion Agenda and these include: Industrialization, Education, Aviation Development, Rural and Riverine Area Development, Agriculture, Small and Medium Scale Enterprises, Infrastructure Expansion and Consolidation, Security and Human Capacity Development.

“This comprehensive Economic Agenda cut across all aspects of Sustainable Development Goals (SDGs). We intend to achieve a sizeable number of the SDGs targets as we implement the 2022 budget.  The main thrust, however of the 2022 Budget is t to create more jobs for our people”.

The governor who promised huge development in the health, education, infrastructure and other sectors said on aviation, “our Air infrastructure-Ibom Air, today, is the pride of the Nation. Our goal in the aviation business is to be the best in Africa and ultimately one of the best in the world. Accordingly, Ibom Air has placed an order for the supply of 10 No. brand new Airbus (A220-300) series for delivery in 2022 and 2023 respectively. By this arrangement, the airline is fostering a long term partnership with the Airbus, the manufacturers of the planes and an announcement is expected at the Dubai Air Show in Nov. 2021. Also in 2022, Ibom Air will commence international flight in West Africa.

“Other activities at the Airport in the year 2022 will include; Construction of Hanger floor and completion of back of house facilities of the MRO at the Victor Attah International Airport. Provision has been made in the 2022 Budget to complete the Power Station and Taxi Way with Apron at the Airport”.

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