Obaseki faces fresh hurdle over N27.4 billion CBN, World Bank loan

Obaseki faces fresh hurdle over N27.4 billion CBN, World Bank loan

Indications have emerged that Edo State is facing a fresh hurdle over the Central Bank of Nigeria (CBN) Special programmes and World Bank loan to fund the N175.7 billion deficit budget for the year 2019. A government source blamed the challenges on “the dwindling Internally Generated Revenue (IGR) and accruals from oil revenue to the

Indications have emerged that Edo State is facing a fresh hurdle over the Central Bank of Nigeria (CBN) Special programmes and World Bank loan to fund the N175.7 billion deficit budget for the year 2019.

A government source blamed the challenges on “the dwindling Internally Generated Revenue (IGR) and accruals from oil revenue to the State”.

At the presentation of the budget estimate to the State House of Assembly for consideration in November 2019, the Governor, said, “We envisaged that there will be deficit of N27.4 billion and will be borrowed from the market”.

“The deficit in this year budget will be funded by a mix of internal and external loans from the Central Bank of Nigeria where we expect N1.5 billion especially intervention fund targeted at agriculture for jobs creation, the balance of N25.8 billion will be sourced from external project specific financing from the world bank window. 

According to the governor, “the funding of the budget was hinged on $60 benchmark crude oil price increase with an average daily production of 2.3 million barrel per day as well as the increase in internally generated revenue.

The appropriation law tagged, “budget of socio-economic inclusion was geared towards consolidating on the gains of the last two years of the administration.

The budget which is 9.2 per cent above the 2018 budget of N146 billion, comprises N79.9billion for recurrent expenditure and N95.8 billion for Capital expenditure.

The total revenue for the year is caped at N148 billion which include statutory allocations. IGR and grants, according to him.

“From the fund expected from the world bank N15.5 billion will be deplored from projects specific funding of the Nigeria Erosion and Watershed management project (New-Map)…”.

Besides, the balance will be for the State Employment and Expenditure for Result (SEEFOR), Community and Social Development Project (CSPd) as well as FADAMA programme. These facilities currently exist and available to the State government”, he said.

He also stated that the world bank is providing another N10.3 billion to fund healthcare programme in the State so as to consolidate on the progress the State government had made in the last two years in the sector.

He said the 2019 budget proposal will propel Edo State to move closers to its dreams having weather through the shocks of different economic crisis in the last two years.

Obaseki said the budget was proposed on a capital to recurrent expenditure ratio of 54.5 percent capital to 45.5 percent recurrent which 

A breakdown of the budget indicates that N42.7 billion was allocated to infrastructure development, N9.3 billion for Health, N26.8 billion for education and N7 billion for investment promotion.

Others are N2 billion for security, N9 billion for payment of pension, N967 million was allocated to the judiciary, N2 billion to reinforce the State security architecture, N500 million for the development and construction  of the Benin royal museum among others

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