Ayade’s Search For Elusive Investors – What He Has Brought Back So Far
On October 25, 2015, Governor Ayade presented his first budget of N350 billion to the state Assembly and tagged it budget of “Deep Vision” which was a 274 percent increase from the 2015 budget of N149 billion.
Details of that budget earmarked (51.41 percent) N179,727,830,404 for the Economic Sector. (15.21 percent) N53,009,294,029 for Social Services. (15.31 percent) N53,443575,772 for Regional Development and (18.1 percent) N63,219,299,785 for general administration; totalling N349,399,999,990.
This was viewed as unrealistic by many but Governor Ayade argued that the signature projects and several other projects of deep vision which will take the State out of the financial woods were catered for in this budget.
Undaunted by critics, Mr. Ayade on November 1, 2016 presented a N301 billion 2017 budget of “Infinite Transposition.” This was N49 billion less than his first.
While Cross Riverians were still scratching their heads in January 2017 about what Infinite Transposition means, Ayade assented to a budget of N707 billion and explained that the over N400 billion that had been incorporated was to cater for the projects of deep vision from the previous year that will infinitely transpose to three more years. This placed the State second with Lagos budgeting NGN812 billion in 2017.
Defending the transposition, Mr. Ayade told Cross Riverians that it was a “war time budget”.
He explained that the reason for the astronomical increment is as a result of *expected funds from Foreign Direct Investment FDI and support for his signature projects by the Federal Government*, pointing out that, “Our rare moment of hope is born.”
He said that the budget “believes in the infinity of dreams, capacity and intellect. It is a budget that believes also that budgeting and expectations of your pocket, limit your aspirations and dreams and therefore, the new budgeting concept believes in deficit budgeting because it has tremendous advantages.”
As usual, he went philosophical and averred that: “When you budget beyond your carrying capacities and physical realities, it allows your soul to leap into quantum height to be able to drive with the energy that must free the State from pains and agony.”
But with all the high wishes, the quantum height, the infinity of dreams, capacity and intellect, not much has come from the governor’s incessant travels and long stays-away from work he was voted to do at Peregrino House.
Data obtained from the National Bureau of Statistics NBS and the Central Bank of Nigeria CBN, show that Cross River state got:
2016 Net FAAC – 17,351,609,944
2017 Net FAAC – 23,451,782,733
2018 Net FAAC – 36,954,686,823
2019 Net FAAC 14,027,058,339 up to May.
_FAAC is the State’s share from the Federation Account Allocation Committee_
IGR 2016 – 14.77bn
IGR 2017 – 18.10bn
IGR 2018 – 17.55bn
IGR 2019 – ????????
IGR is Internally Generated Revenue.
Net FAAC + IGR (2016) = 32,121,609,944
Net FAAC + IGR (2017) = 41,551,782,733
Net FAAC + IGR (2018) = 54,506,799,760.22
Net FAAC up to May 2019 + IGR ?????? = 14,027,058,339
Within the corresponding period, Cross River state was only able to attract Foreign Direct Investment FDI which is a component of Captial Importation, to the tune of a paltry N19billion with a rolling deficit exceeding N1trillion.
Click the link below to see revenue and capital importation details in Google drive. https://drive.google.com/folderview…
$20m (N7,200,000,000bn) investment came in January 2016 and $6,400,000 (N2,304,000,000) in May 2016, totalling N9,504,000,000 against a deficit of N318,878,390,056 in the same year.
While Governor Ayade did most of his foreign travels in search of FDI in 2017, the State ironically imported Zero Capital for 2017 according to CBN records leaving an unfunded deficit of N665,448,217,267 same year.
With a N1.2trillion deficit in 2018, Capital Importation for the year was only $1,230,000; (N442,800,000) having $230,000 in March and $1,000,000 in November 2018, totalling N442,800,000.
The 2019 Net FAAC to the State, up to May is N14,027,058,339 but the State has already Imported $25,000,000 (N9,000,000,000) Capital, since January.
If you examine the net FAAC and IGR of the State from 2016, there is a N318,878,390,056 funding gap (deficit) in the 2016 budget of N350billion.
There is a N665,448,217,267 funding gap (deficit) in the 2017 budget of N707billion.
There is also a N1.2 trillion funding gap (deficit) in the 2018 budget of N1.3trillion.
There is more than N900billion funding gap (deficit) in the 2019 budget of 1.042trillion.
Governor Ayade says his deficit budgeting was deliberately fashioned *to accommodate and warehouse investors funds*. He has been travelling profusely to source for FDI.
But from the statistics so examined above, it can be stated that, for four years, Governor Ayade has been rolling over a cumulative budget deficit of over one N1trillion in expectation of investors funds but has only been able to raise a paltry N18,946,800,000 ($52,630,000) from his travels in four years.
The questions that follow the cost benefit of these travels remain to be asked by Cross Riverians.
The clock never fails to tick, it’s 1400 days left today, yet the governor is somewhere, snapping photos with “investors” who have refused to come and sending back to us from yonder.
Citizen Agba Jalingo.