Group flags low IGR in Delta State’s 2025 budget, alleges fraud in revenue collection 

The New Delta Coalition, a prominent pressure group, has raised concerns over the low Internally Generated Revenue (IGR) figures in Delta State’s proposed 2025 budget.

According to the group, the state’s reliance on federal allocations and external revenue sources is unsustainable and indicative of systemic issues in financial management.

The group criticized the N140 billion IGR projection, which accounts for just 15% of the total N936 billion budget presented by Governor Sheriff Oborevwori to the State House of Assembly.

Alarmingly low IGR 

In a statement released on Saturday, the coalition’s National Coordinator, Mr. Godwin Anaughe, said,

“The IGR is alarmingly low, signaling potential underreporting and widespread fraud in the revenue collection system. This heavy reliance on federal allocations undermines the state’s financial independence.” 

For comparison, the group highlighted the more robust IGR achievements of states like Lagos, Rivers, Ogun, and the FCT, emphasizing that Delta’s figures indicate stalled growth and financial mismanagement.

Declining IGR trends

The coalition revealed that Delta’s IGR has been on a steady decline, noting that in 2023, the state collected N87.6 billion in IGR (January to September), representing 17.35% of the total budget.

• In 2024, IGR constituted 16.35% of the approved budget.
• The 2025 projection of 15% highlights a worrisome downward trend.
• The group attributed this decline to revenue collection practices introduced during Senator Ifeanyi Okowa’s administration, where party chieftains acted as revenue consultants.

“This flawed system has failed woefully, resulting in underperformance and lack of accountability in revenue collection,” the statement added. 

Missed economic opportunities 

The New Delta Coalition lamented the state’s failure to capitalize on its economic potential, which includes rich natural resources like crude oil, natural gas, and untapped tourism prospects.

“Delta boasts beautiful landscapes and cultural attractions, yet its tourism potential remains largely ignored. This is a missed opportunity for alternative revenue generation,” the group stated.

• The coalition also criticized successive administrations for their inability to diversify the state’s economy and drive growth beyond the oil and gas sector.
• The group urged Governor Oborevwori to leverage the opportunities presented by President Bola Tinubu’s economic reforms, which have boosted FAAC allocations and agricultural prices.
• By promoting farming, food processing, and basic infrastructure development, Delta State can achieve financial sustainability and foster growth.

“Delta must break free from its financial constraints through innovative reforms and initiatives. Sustainable growth for its citizens can only be achieved by exploring new revenue streams and reducing reliance on federal allocations,” the coalition advised. 

What you should know 

• Nairametrics earlier reported that the Delta State Government had approved the submission of a proposed budget of N936 billion for the 2025 fiscal year to the State House of Assembly for review and deliberation.
• This was revealed by the State Commissioner for Economic Planning, Mr. Sonny Ekedayen, during a briefing with journalists following the State Executive Council meeting led by Governor Sheriff Oborevwori at the Government House in Asaba.
• Mr. Ekedayen was joined by the Commissioners for Information, Dr. Ifeanyi Osuoza; Works (Rural and Riverine Roads), Mr. Charles Aniagwu; and Riverine Infrastructure, Mr. Ebikeme Clark.

The proposed budget allocates N587.4 billion (62.75%) to capital expenditure and N348.7 billion (37.25%) to recurrent expenditure.