Newscenter Media News In an audacious and significant move geared towards recalibrating the economic landscape of Cross River State, Governor Bassey Edet Otu recently presented the 2025 Appropriation Bill to the State House of Assembly.
Dubbed the “Budget of Sustainable Growth,” the proposed budget stands at an impressive N498 billion, representing a remarkable 98% increase from the previous fiscal year. The ambitious financial plan seeks to address critical needs while promoting sustainable growth across various sectors, exemplifying a proactive approach to governance in a challenging economic climate.
The 2025 Appropriation Bill is characterized by a substantial allocation toward capital projects, with N328 billion (66%) dedicated to infrastructure and long-term investments, while N170 billion (34%) is set aside for recurrent expenditure. This strategic allocation reflects a commitment to building a sustainable future for Cross River State, as articulated by Governor Otu during his budget address.
The emphasis on capital expenditure over recurrent spending indicates a clear intention to foster development that transcends day-to-day operational costs, focusing instead on projects that will yield long-term benefits for the state’s economy and its citizens.
In detailing the breakdown of sectoral allocations, Governor Otu underscored his administration’s commitment to identifying and addressing the pressing needs of the state. The budget allocates N100 billion for infrastructure, signaling a recognition of the crucial role that roads and other foundational projects play in economic development and job creation.
Education, another critical area, receives N81 billion, with a specific focus on increasing the literacy rate from approximately 80.03% to 98% by the end of the governor’s tenure. This goal reflects a commitment to providing quality education and ensuring accessibility for all.
The health sector is allocated N25 billion, with a focus on reducing maternal and infant mortality rates and improving healthcare facilities. This investment is essential for ensuring that citizens have access to quality healthcare, a critical component of overall societal well-being.
Additionally, agriculture, judiciary, and tourism also have their sizable bites at the cherry with allocations of N11 billion, N20 billion, and N5 billion respectively, highlighting a holistic approach to development that encompasses various facets of society.
To finance this ambitious budget, the Otu administration has outlined a diverse revenue strategy that includes grants from international organizations, and internally generated revenue. By reducing dependency on federal allocations, the administration aims to enhance financial independence and ensure a more stable economic foundation for the state. This diversification is crucial, particularly in a context where economic challenges loom large and traditional funding sources may be strained.
A standout feature of the 2025 budget is its alignment with the Sustainable Development Goals (SDGs). Governor Otu’s administration has prioritized several SDGs, including SDG 9 (Industry, Innovation, and Infrastructure), SDG 4 (Quality Education), SDG 3 (Good Health and Well-being), SDG 2 (Zero Hunger), and SDG 16 (Peace, Justice, and Strong Institutions). This alignment underscores the administration’s commitment to addressing immediate developmental needs while contributing to the broader global agenda for sustainability.
The focus on infrastructure development is particularly noteworthy as it is deliberate, with plans for continued construction of roads, bridges, and rail lines. These investments are expected to stimulate economic activity, enhance connectivity, and create jobs across the state, fostering a robust environment for business and trade.
Furthermore, the commitment to improving the education sector through free and compulsory education policies and technical training reflects an understanding of the importance of human capital development in driving economic growth.
While the proposed budget paints an optimistic picture for the future, it is essential to acknowledge the numerous challenges that the state faces. There is the prevailing unfavorable economic climate, characterized by the devaluation of the naira and fluctuations in the exchange rate. These factors have significantly impacted project implementation, necessitating a careful reevaluation of priorities.
Governor Otu acknowledged that his administration had to scale down on certain projects while prioritizing those with immediate impacts on citizens.
Additionally, the state is still grappling with crushing debt burden, with substantial allocations directed toward debt servicing. As of December 2023, N2.21 billion had already been forfeited to meet debt obligations, and by the third quarter of 2024, N7.87 billion had been expended on servicing these debts. This financial strain poses a significant challenge to the administration’s growth objectives and underscores the need for prudent fiscal management.
An essential aspect of the 2025 Appropriation Bill is the emphasis on participatory governance. Governor Otu highlighted the extensive consultations conducted with various stakeholders, including government ministries, civil society organizations, and the public. Public hearings held across the three senatorial districts—Calabar, Ikom, and Ogoja—allowed citizens to voice their aspirations and needs regarding governance and development.
This participatory approach not only enhances transparency but also ensures that the budget reflects the priorities of the people it serves.
Governor Otu’s assertion that “we are here to serve the people, and their input is crucial to our governance” encapsulates the philosophy that underpins his administration’s approach to budget planning. By incorporating the voices of citizens, the government can create policies and allocate resources that resonate with the realities faced by the populace.
The 2025 Appropriation Bill proposed by Governor Bassey Edet Otu represents a bold step toward fostering sustainable growth. With substantial allocations for infrastructure, education, health, agriculture, and tourism, the budget reflects a comprehensive strategy to address the pressing needs of the state while promoting long-term development.
However, the challenges presented by the current economic environment cannot be overstated. The prudent management of resources, along with the diversification of revenue sources, will be critical in navigating these complexities. Furthermore, the commitment to participatory governance and public engagement serves as a reminder that the success of any budget ultimately hinges on the trust and collaboration between the government and its citizens.
Obogo is Special Adviser on Media and Publicity to Governor Bassey Otu
Linus Obogo: N498bn 2025 budget: Gov Otu’s bold step towards sustainable growth