Even as the Supreme Court pronouncement on the legal tussle over the collection of the Value-added Tax, (VAT) between the Rivers State Government and the Federal Government is being awaited, Governor Nyesom Wike is already upbeat that the state would come out victorious. This indication emerged as the governor, while presenting the 2022 budget estimate of N483bn to the state House of Assembly at the weekend, announced the integration of VAT into the state’s mainstream tax operations.
“In anticipation of our victory we are continuing with our plan to integrate the VAT into our mainstream tax operations and strengthen the capacity of the RSIRS (Rivers State Internal Revenue Service) to effectively administer this head of tax when the responsibility comes”, the governor had informed the lawmakers. The governor urged the apex court to expedite action on the legal tussle and serve justice to the parties. He said the policy thrusts for the 2022 Appropriation bill christened, “Budget of Consolidation,” would focus on the state’s quest for greater economic growth and fiscal consolidation, enhancing jobs and wealth creation, building first-rate economic infrastructure, and achieving equity and social protection through poverty reduction and economic inclusiveness.
“The 2022 budget is crafted within the framework of the State’s Medium Term Expenditure Framework, the State’s Economic Strategy Paper, the national economic outlook and the State’s economic growth projections coupled with the various development instruments and programmes.” Wike said the projected recurrent expenditure was One Hundred and forty-four Billion, Seven Hundred and Sixty-Four Million, Eight Hundred and Eighteen Thousand, Nine Hundred and Seventy-Seven Naira (N144, 764,818,977.00), which represents about 30 per cent of the total budget size for the 2022 fiscal year. According to him, the projected estimates for capital expenditure is Three Hundred and Fourteen Billion, Nine Hundred and Three Million, One Hundred and Eighty Thousand, One Hundred and Sixteen Naira (N314, 903,108,116.00), which represents about 65 per cent of the total budget size.
The governor stated that the 2022 budget was pegged on the assumptions of the crude oil benchmark of $50 per barrel, national crude oil production estimates of 1.7 million barrels per day; Currency exchange rate of N410 to the Dollar; Gross Domestic Product growth rate of between 3 per cent for the medium term; and inflation rate of 13.5 per cent. Wike explained that over half of the capital budget estimate was targeted at the economic and social sectors. He listed the main items of the scheduled capital spending in the 2022 budget to include Agriculture, Roads, Bridges, Healthcare, Education, Social Welfare, Justice Delivery, Sports, Youth and Women Empowerment and Human Security. He said the administration would complete the following roads, flyovers and other projects in the 2022 fiscal year: The Abali flyover, Rumukalagbor flyover, Nkpolu flyover, Rumuepirikom flyover and Elimgbu – Rumuokrushe flyover; the dualization of Ogbunuabali road, the dualization of Eastern bypass road; the dualization of Egbema – Omoku road; TransKalabari road (phase one), the dualization of Ahoada – Omoku road (phase one); the dualization of Bori-Kono road and the dualization of Chokocho – Okehi – Igbodo road. Others include, Ogu – Ekporo –Kpogor-Wakama link road; Akpabu – Omudioga – Egbeda road; Rumuodogo 1 & 2 roads; Omoku-AligwuKreigani-Oduoboburu road; Mgbuosimini – Nkpor – Mgbuodohia roads; Okochiri internal roads, phase 2; Omerulu community internal roads; Nchia internal roads; Igwuruta community internal roads; Abonnema/ Obonnoma Sandfilling and reclamation; Bakana sand filling and reclamation; Okrika sand filling and reclamation; The rest are new Government jetty at Marine base, Port Harcourt; Chokocho Igbodo road; Oyigbo – Okoloma road; Rumuesara – Eneka road; and Ogu/Bolo sand filling.”