Ibekimi Oriamaja Reports
Delta State Government has budgeted N459 billion for fiscal year 2023 as Dr. Ifeanyi Okowa’s administration strives to finish strong by completing ongoing projects across the state.
The State Commissioner for Economic Planning, Dr. Barry Gbe, hinted yesterday at the start of budget defense by respective ministries, departments, and agencies (MDAs) in Asaba that the “indicative figure” was subject to change before the final budget estimate.
Gbe emphasized that the budget projection was influenced by the country’s spiraling inflation and high exchange rate caused by the naira’s poor performance against major international currencies, noting that financial realities had a negative impact on Delta State’s contractual obligations.
This situation, according to the Commissioner, required a general upward review of contract sums for various ongoing projects in light of inevitable contractor demands.
The projected budget figure took these differences into account, and it was based on a national benchmark of $70 per barrel, the international oil price.
“While the current price of oil is $107 per barrel, compared to $57 per barrel in 2022,” Gbe explained, “we will organize the budget around a benchmark of $70 per barrel in the event of a drop in oil prices.”
“We do not want the incoming administration to inherit a large debt burden by May 2023.”
He stated that the budget would allow the state to pay off outstanding interest on bank loans.
The Russia-Ukraine conflict has been a blessing in disguise for Nigeria, he says, because more countries are now buying the country’s crude oil, despite the country’s massive oil subsidy.
