A’IBOM ASSEMBLY HOLDS PUBLIC HEARING ON 2025 – 2027 MTEF
The Akwa Ibom State House of Assembly committee on Economic Planning and Development on Thursday, 29th. August, organized Public Hearing on 2025 – 2027 Medium Term Expenditure Framework (MTEF) at the Old Chapel of the House of Assembly, Uyo.
The event was declared opened by the Speaker of the house of Assembly, Rt. Hon. (Elder) Udeme Otong, himself Member Representing the people of Abak State Constituency. Elder Otong expressed confidence that the 8th Assembly is on the right track towards taking Akwa Ibom to the Land of Fulfillment which according to him has always been their collective dream in keeping with the norms of democracy by availing Akwa Ibomites and critical stakeholders the opportunity to partake in its engagements.
Speaking through the member representing Ikono State Constituency, Rt. Hon. Asuquo Nana Udo; the Assembly helmsman said that he’s aware that this alteration is the fourth alteration of the document, which covers the period 2025 – 2027 and that Akwa Ibom State government decided to adopt the preparation of the EFU-FSP-BPS for the first time in 2021as part of the movement towards a comprehensive MTEF.
In addition, Otong also averred that the Economic and Fiscal Update (EFU) provides economic and fiscal analyses which form the basis for the budget planning process because the EFU also provides an assessment of budget performance (both historical and current) and identifies significant factors affecting its implementation.
According to him, the Fiscal Strategy Paper (FSP) and Budget Policy Statement (BPS) on the other hand are key elements in the Medium Term Budget Framework (MTBF), serving as the top-down component of the Medium Term Expenditure Framework (MTEF), and annual budget process.
However, the speaker on behalf of the 8th Akwa Ibom State House of Assembly, welcomed and appreciated all critical stakeholders and resource persons who joined for the very important and crucial assignment.
Earlier in his welcome address, the committee Chairman Hon. (Dr) Nsidibe Akata, member representing Eket State Constituency prides himself on the fact that this Hearing is the second Public Hearing on MTEF organized by the 8th Assembly, and the fourth ever Public Hearing on MTEF organized by the Akwa Ibom State House of Assembly and that it has been institutionized as the basis for determining an annual Budget size of the State.
He also added that, people’s contributions and inputs will be utilized in the final copy of the State 2025-2027 MTEF Document that will be passed by the House, for the 2025 Budget deliberations to commence and to determine the resources which will be available to funding government Budget for 2025 financial year,
He further said, “As we are aware, the State Fiscal Responsibility Law, as the institutional basis of MTEF in the State, provides that MTEF should be laid before the State House of Assembly not later than the 2nd of August every year. In this connection therefore, I must sincerely applaud His Excellency, the Executive Governor of our State, Pastor Umo Eno, for forwarding the 2025-2027 MTEF to the State House of Assembly within the stipulated time frame, which makes this Public Hearing possible today.”
The Committee Chairman appreciated the roles of the State Fiscal Responsibility Board, State Budget Office, Office of the State Accountant-General, USAID State2State and all other stakeholders and mostly the Hon. Commissioner for Economic Development, Mr Emem Bob, for ensuring that the 2025-2027 MTEF is prepared earlier this year to meet up with the deadline.
Consequently, the Honourable Commissioner, Ministry of Economic Development, Mr. Emem Almond Bob in his presentation said that the Medium Term Expenditure and Fiscal Strategy Paper (MTEF & FSP) is a major feature of the annual budget preparation cycle which provides the basic structure for the estimates and assumptions that underlie the annual budgets.
According to him, the fiscal operations of the State Government are framed by the Fiscal Responsibility Law of Akwa Ibom State, PART II Section 15 (1a,1b), Section 17 (1) (2) a, b and c, section 18 and 19, which provides the legal framework for fiscal operation of government, including broad-based development objective in the Medium-Term Expenditure Framework (MTEF) .
In his policy statement, Bob stressed that the State’s fiscal policy is envisaged to control and enforce compliance with established spending limits to achieve sound budgeting system, which include aggregate fiscal discipline, allocative efficiency, and effective spending.
In a brief overview, the economic Development Commissioner expressed that the key targets for Akwa Ibom State Government from a fiscal perspective include:
“Attainment of a recurrent to capital expenditure ratio of between 45:55 or 40:60; Create efficiencies in personnel and overhead expenditure to allow greater resource for capital development; Grow IGR by basic target minimum of 20% per annum; Allow 1.0% of revenue for a contingency reserve; Long term target of funding all recurrent expenditure through revenue of a recurrent nature (IGR, VAT and Non-mineral component of Statutory Allocation); Target sources of capital receipts and financing outside of loans (e.g Grants, PPP, etc.); and Priority given to completion of ongoing capital projects of the outgoing Administration while new projects are conceived.” Hon. Bob states.
He also advocated that the 2025-2027 MTEF and FSP is a pre-requisite for the presentation of 2025 State Budget Estimates to the House of Assembly.
Adding that after the submission of the 2025-2027 MTEF, new revenue items evolved which are: Infrastructure funds and Signature Bonus. According to him, Funds from these new revenue items have been estimated to increase the recurrent revenue in 2025 by N20.0b while the Recurrent Revenue should be increased by N20.0b, Direct Credit Substitute/Receivable Discount Facility (Internal Loan) should be reduced from N30.0b to N10.0b.
Although, every State in Nigeria is expected to rely on the federally computed macroeconomic indicators and assumptions to inform their annual budgets of which Akwa Ibom is no exception; highlights of the public consultation on 2025-2027 MTEF And FSP of Akwa Ibom State Macro-economic framework assumptions include Opening Balance, Statutory Allocation, Derivation, VAT, Internally Generated Revenue (IGR), Grant, Other Capital Receipts, Financing (Net Loans), Personnel, Overheads, Grants and Contribution, Public Debt Service, Capital Expenditure, Contingency Reserve, Planning Reserve, Capital Expenditure Ratio, External Bank Loan.
However, the Commissioner hinted that as the 2025-2027 Federal MTEF is not yet out for the adoption of macroeconomic indicators assumptions therein, thus the macroeconomic framework tentatively adopted for this Akwa Ibom EFU-FSP-BPS is based on the macroeconomic indicator’s assumptions forecasted by USAID State2State for their 6 partner States to use tentatively based on the macroeconomic indicators assumptions in the April 2024 IMF World Economic Outlook document.
Similarly, the Hon. Commissioner for Finance, Dr. Nsikan Linus Nkan, In his key note address, expressed that the 2025-2027 MTEF will provide the basis for the 2025 Budget as the Budget Policy Statement (BPS), in the MTEF, has outlines the overall policy goals that will guide the decisions of the State Government on its budget decisions, including how the budget integrates with its short-term objectives in order to help in the improvement of Budget Implementation Performance.
Dr. Nkan also added that apart from complying with the State Fiscal Responsibility Law, MTEF is produced to realistically determine an annual Budget size/envelop after estimating the expected revenue with clear fiscal targets and macroeconomic assumptions.
In their separate contribution, Comrade Franklyn Isong of Centre for Human Rights and Accountability Network (CHRAN), Comrade Sunny James of Nigeria Labour Congress (NLC) and Bolton Akpan of Policy Alert and Dr. Harris Udoh presented their memo’s at the event.
Memorandum also presented include the paramount Ruler of Urue Offong for traditional institution, Dr. Victor David for Akwa Ibom Human Rights Activist, Dr. Martins Okono spoke for Open Forum, as well as other groups who submitted their written scripts to the Committee’s secretariat for considerations.
Present at the hearing include the vice chairman of the committee Hon. Prince Ukpong Akpabio II, the House Leader Hon. Sunday Johnny, the Chief Whip Rt. Hon. (Sir) Effiong Johnson, Hon. Moses Essien, Hon. Lawrence Udoide, Hon. Dr. Itorobong Etim, Hon. Selinah Isotuk Ukpatu, Hon. Precious Selong, Hon. Mrs. Selinah Ukpatu, Hon. Engr. Udobia Friday, Hon. Bassey Bassey, Hon. Jerry Otu, Hon. Uwemedimo Asuquo and Hon. Eric Akpan.
Others were the Attorney General and Commissioner for Justice represented by Inyene Ibe Bassey, the Committee Clerk Mrs. Unyime Ekpenyong, Permanent Secretary/Auditor General for the State Isaiah Ntekim, Permanent Secretary – Economic Development, Barr. Christopher Udoh, DG – Fiscal Responsibility Board – Mr. Edet as well as representatives of FIRS, State Budget Office, groups, organizations, traditional institution among others.
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