Two leading civil society organizations, the Budget Transparency and Accountability Network (BTAN) and the Tax Justice and Governance Platform, have raised critical concerns about fiscal policies in Cross River state. During a two-pronged but, same day advocacy visit to the Clerk of the Cross River State House of Assembly (CRSHA), Catherine Ujong Ubi Esq., the organizations highlighted key issues in the state’s proposed 2025 budget and tax administration system NEGROIDHAVEN has confirmed.
BTAN, led by its chairperson, William Itorok Esq., presented an analysis titled “Analysis and Issues in the Cross River State 2025 Proposed Budget.” The ₦498 billion budget, described by Itorok as ambitious, aims to drive socioeconomic development through strategic allocations. However, BTAN pointed out several challenges hindering its efficiency, including:
– Over-reliance on Federal Allocations: ₦254.74 billion, accounting for 51% of the budget, is sourced from federal allocations, leaving the state vulnerable to fluctuations in oil revenues and federal policies.
– Weak Internally Generated Revenue (IGR): With IGR contributing only ₦43.38 billion (8.7%), the state’s economic potential remains underutilized.
– Debt Concerns: Loans account for 24.7% (₦123.39 billion) of the budget, exacerbating the state’s already high debt burden as Nigeria’s fourth most indebted state. Debt servicing alone will cost ₦41.05 billion, diverting funds from critical development projects.
– Sectoral Allocation Imbalances: BTAN noted a disproportionate focus on infrastructure over human capital development, underfunding of essential sectors like healthcare and education, and potential replication of project allocations, such as street lighting initiatives scattered across ministries and local government areas.
– Transparency and Public Inclusion: Limited stakeholder engagement in the budget formulation process was also flagged, raising questions about inclusivity and alignment with community needs.
Despite these concerns, BTAN acknowledged the government’s focus on capital development, with ₦123.39 billion allocated for infrastructure projects, and its efforts to include transparency metrics in the budget.
“It is important that the state prioritizes fiscal sustainability, equitable resource allocation, and enhanced transparency to maximize the impact of this budget on Cross Riverians,” Itorok emphasized.
In a separate engagement with the Clerk of the CRSHA on the same day, the Tax Justice and Governance Platform proposed reforms aimed at improving Cross River State’s tax administration system. The group called for the expansion of the state’s tax base through compliance improvements and the exploration of untapped revenue sources, such as property and environmental taxes.
The platform also advocated for strengthening technology use in tax administration to enhance efficiency and transparency. They criticized the practice of engaging untrained revenue collection agents, often through political patronage, who collect taxes, levies, and tolls in cash.
“There is a need to discourage cash-based revenue collection and adopt transparent digital systems. This will not only curb leakages but also restore public confidence in the state’s tax administration,” said Itorok.
Barr. Catherine Ujong Ubi, Clerk of the CRSHA, commended both organizations for their detailed analyses and actionable recommendations. She assured the groups that their submissions would be conveyed to the relevant committees in the House for consideration. Ubi was particular about the Fiscal Responsibility Commission whose enabling bill has been passed but, yet to be implemented in the state. She said it is the job of the executive to set up that commission.
“The House of Assembly is committed to fostering transparency, accountability, and fiscal prudence in governance,” she stated.
