Loss Of Oil Wells: Cross River Cuts Budget

WITH the loss of Bakassi to Cameroun and subsequent loss of the 76 oil wells to Akwa Ibom State, the Cross River State government has proposed a reduction of its budget for the year from N148, 329,681,932 to N144, 152,966,783.53.Governor Liyel Imoke made this known in a Bill requesting for the amendment of this year's Appropriation Law forwarded to the state Assembly yesterday.Highlights of the proposed adjustment include Internally Generated Revenue (IGR), which until June this year was N6, 231, 540.00, against the mid-year target of N13, 023, 500.00, representing a 47.85 per cent achievement.Imoke said though in comparative terms, the performance is the highest of all mid-year performance ever recorded, but when matched with the state's rising current commitment, significant potentials can still be achieved.The governor said the Federation Account in-flow, which has also necessitated the adjustments, has always been determined by the volatility of crude oil price in the international market and general economic conditions, pointing out that the state had anticipated a favourable judgment in respect of the 76 oil wells and accordingly made a provision for inflow of N6, 037,685,934 by mid-year.He added that the performance level of N4, 083,813,373.18, representing 67.64 per cent as at June this year, preceded the Supreme Court judgment and that as expected, this had severe ramification on the state cash flow.On donor funds, Imoke said the provision has been reduced fromN2, 667,999,980 to N500 million, as loans for urban water sector projects would not materialise this fiscal year, as earlier anticipated.Similarly, he said the Ecological Fund provision of N700million from the federal government for environmental degradation has been expunged.In a letter conveying the request to the Speaker, Larry Odey, and dated September 10, the governor drew the attention of the House to the challenging economic climate the state is currently facing and the significant progress recorded, despite its financial profile and sued for a collective intervention and concrete collaboration to sustain these gains.
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