THE FINANCE CLUSTER REPORT: MINISTRY OF FINANCE
VISION
To be the best Fiscally managed State in Nigeria.
MISSION
To manage the financial resources of the State government effectively and efficiently, to achieve the socioeconomic goals of the government.
INTRODUCTION /STRATEGIC INITIATIVE
Following the removal of the State from the list of oil-producing States, the Cross River State Finance cluster was created in December 2009, as a think-thank to harness and prudently manage the lean financial resources of the State for optimal results.
COMPOSITION
The Cluster is made up of:
1. The Ministry of Finance (Lead)
2. The Cross River State Internal Revenue Service
3. The Office of the Accountant General of the State
4. Bureau of Public-Private Partnerships
5. Auditor General (State and Local Government)
6. Ministry of International Donor Coordination
7. Budget Office
8. Ministry of Commerce
9. Equity Investment Co. Ltd
10. Investment Promotion Bureau
11. Microfinance Development Agency
THE OBJECTIVES OF THE CLUSTER
• To periodically take stock and review the performance of the respective MDAs within the cluster.
• Develop strategies for efficient and effective identification, collection and utilization of the resources of the State.
• Improve collaboration among the MDAs PERFORMANCE APPRAISAL PER MDA
1. MINISTRY OF FINANCE
The policies thrust:
• Effectively coordinate all the financial transactions of the State, as enshrined in the State’s Finance and Management Law.
• Provision of clear and concise policy thrusts to guide the State Government on the operation of a transparent finance policy in line with best practices. The Appraisal
• We have implemented prudent and robust debt management strategies that ensure long-term fiscal stability. As a result, our credit rating has improved from BB to BBB according to Datapro, a leading credit rating agency in Nigeria.
• Deloitte and Touche, one of the Big Four accounting firms in the world, recently issued a clean opinion on our financial reporting system. This authentication reflects our enhanced financial transparency, compliance, and accountability achieved through improved financial reporting, internal control, and performance measurement mechanisms.
• Coupled with the financial ratings above our ability to settle our legal obligations has also earned the State a favourable rating from Banwo & Ighodalo, a top notch legal rating firm.
• We have initiated the process of valuing critical assets of the State, which will expand our investment universe and further improve our financial rating.
• In collaboration with relevant MDAs, we successfully hosted an Investment Summit, to restore investors’ confidence in the State and open the State for fresh entry of Foreign Direct Investments.
• In a bid to create a self- sustaining state economy, and reduce the dependency on Federal Government, we successfully hosted the Governor’s Round Table, held with Diplomatic Missions, to further present the State to foreign investors.
• Following the deregulation of the energy sector by the Federal Government, we co-hosted with the Ministry of Power, the Energy Cross River 2024 Summit, to showcase the massive investment opportunities in the State.
• Engagement with the Federal Ministry of Finance, Debt Management Office Revenue Mobilisation Allocation and Fiscal Commission, and other agencies of the federal government for a better relationship and synergy was also achieved. This interaction has been beneficial to the State, as we have recovered through a reconciliation exercise, several funds from the Federation Account.
• The reactivation of the Cross River State Reserve Fund was also contemplated and advised.
• Our constructive engagement with multilateral agencies yielded bumper results with the secured funding from AFREXIM for the Deep-Sea Port and other major projects.
• Renovation of the ministry of finance building and premises, repair of the 250 KVA generator, repair of borehole and reticulation of water in the building, Ministry’s are re-wiring of the building vandalized during ENDSARS protests, were also effected.
All these have dove-tailed into the performances of the cluster member MDAs as presented below.
1. BUDGET OFFICE
1. Preparation of a more realistic and sustainable budget for 2024, an improvement over previous years’ budgets.
2. Another marked achievement of the Department of Budget from May 2023 is the budget Consultative forum that was hosted successfully at the College
of Health Technology with the Deputy Governor, Secretary to the State Government, Head of Service etc. in attendance.
3. The department successfully hosted the 2023 3rd and 4th quarters budget review and the proposed budget was transmitted to the Cross River State House of Assembly (CRHA)
4. The budget office also hosted the 2024 Budget Online
before the 2024 deadline of January 31st, 2024.
5. The budget was signed into Law by His Excellency the Governor of the State before the December 31, 2023, deadline.
6. Held a capacity building/training of MDAs on how to prepare monthly report and successfully hosted a bilateral meeting with Civil Societies and MDAs on the 2024 Approved Budget.
7. 10. Publication of the 2024-2025 Medium Term Expenditure Framework (MTEF) before 2024 budget preparation
3. INTERNAL REVENUE SERVICE
I. Full automation and improved monitoring of major revenue-generating MDAs and points like Forestry Commission, Ministry of Agriculture, CRUTECH (UNICROSS), and the deployment of collections services for micro and small businesses across the rural areas. This has greatly curbed leakages and increased the revenue, without an additional tax burden on the people. Additionally, we can track collections in real- time, identify leakages immediately, and take remedial measures to block the loopholes immediately.
II. IGR grew from N20.5 Billion in 2022 to N30.8 Billion in 2023, representing an increase of 50.24%
III.
IV. IGR grew by 60.6% or N22.6 Billion from June 2023 to N36.3 Billion in May 2024.
V. From January 2024 to May 2024, IGR of N16.3 Billion was recorded against N10.5 Billion during the same period in May 2023, showing a growth of 55%.
4. OFFICE OF THE ACCOUNTANT GENERAL
1. We have met salaries, debt, contractual, legal, and other financial obligations using a sustainability plan. We have secured the funds for all the ongoing projects. This points to a shrewd financial management strategy, which is creative and robust.
2. On accountability index, the State has progressed geometrically by moving from its permanent 28th position, to being among the first ten best States in accountability. This is through the timely delivery of records to relevant authorities.
3. SABER: The State for the first time won a $4,000,000.00 (four million dollars) through its DLI achievement in SABER and has as well-qualified for the 2nd year IVA screening and is rated the 2nd best state in the whole Federation.
4. The SABER has frequently organized capacity building workshop for all the stakeholders of various DLIs's involved in the SABER project. Training of40 magistrates and court officials on small claim court management.
5. Transparency And Reporting of Accounting Information: The office has lifted the bar for transparency and reportage of accounting information, reduced information leakages and building of confidence across board.
6. IPSAS ACCRUAL BASIS OF ACCOUNTING: Laid the foundation for the migration of the state accounting reportage from IPSAS cash to IPSAS accrual-based reporting. Also working on modalities to implement e-banking and e-transact accounting
7. The rehabilitation and beautification of the office of the accountant general.
I. This includes the revamping of the spirit of the hitherto demoralized staff.
II. The fixing of decayed infrastructure (tables, chairs, window blinds, computers, printers, toilet, conference hall, air conditioners). All the above have improved the staff working conditions and has boosted the morale of the staff.
5. MINISTRY OF INTERNATIONAL DONOR COORDINATION
1. Revitalization of development partners activities with monthly development partners forum to deliberate on keying into the State’s development aspirations.
2. Facilitated/attracted five new development partners to the State within the period.
3. Through the NG-CARES, the State has been reimbursed to the tune of N13 Billion,
1. 4 About N18bn to accrue to the State before the end of June 2024.
4. Assisting CUDA interventions through payment of monthly stipends to over 20,498 beneficiaries of the public workforce compound of NG-CARES across the 18LGAs
5. Revitalized over 1,986 SMEs through a grant of between N100,000.00 to N400,0000.00 to beneficiaries
6. Cash transfer to 17,138 beneficiaries
9. The State through the Ministry won the NG-CARES second position in the country
10. The State also through NG-CARES won the first position in the South-South geopolitical zone.
11. Construction of over 30 solar powered Borehole to communities
12. Renovation and equipping of about 15 examination halls to communities
2. 12 Construction of about 5 multi-purpose science laboratories with furnishing/equipment
13. Construction of over 10 staff quarters in health facilities
3. 14.Purchase of over 5,000 school desks to primary and secondary schools
14. Equipping of over 20 health facilities with medical equipment
15. Construction of over 50 toilet facilities to communities.
FADAMA PROJECTS
16. Empowerment of 5 LGAs rice farmers with 10 rice threshers.
17. Empowered 5 LGAs rice farmers with 19 hand tillers
18. Empowered LGAs rice farmers with 19 Grinders
19. Empowered LGAs rice farmers with 27 Knapscaks
20. Empowered LGAs multi-purpose Cooperative societies with grinding machines
21. Empowered over 10,000 farmers with farm inputs IFAD/
LIFE-ND PROJECT
22. Broiler/layer (defeathering) beneficiaries in 5LGAs
24.68 poultry marketing beneficiaries in 5LGAs
23. 132 homestead vegetable beneficiaries in 9 LGAs 26.38 rice seed multiplication beneficiaries in 4 LGAs
24. 26 rice marketing beneficiaries in 5LGAs 28.27 power tiller beneficiaries in 10LGAs
25. 10 Agric Tech beneficiaries in 10 LGAs
26. Drilling and installation of solar powered boreholes in 4 communities
27. Construction of open/closed market stall
28. Construction of climate resilient culvert in 4 communities
29. Construction of 3 cells mini-bridge
30. Construction of 17.42Km farm Access Road in 4 communities
31. Construction of 5 units Mini-Poultry pen in 6 communities
6. MINISTRY OF COMMERCE
I. Engagement with the Cameroun and Equitorial Guinea Consulates to discuss on areas of Business and Investment Opportunities in the State.
II. Engagement with critical stakeholders in the maritime industry to improve maritime trade and security with our neighbours.
III. Renovation and painting of Prof. Eyo Ita House to bring the building up to standard.
4. STATE AUDITOR GENERAL
The Office of the Cross River State Auditor General is a service provider with its vision to be a classic agent for ccountability and ensuring that government obtains value on every public expenditure.
In realization of the aforementioned vision, His Excellency, the Governor has supported the office in the following areas;
I. Capacity building of staff - Sponsorship of 13 No. Chartered Accountants to attend the 58th Annual Accountant Conference (AAC)
II. Constitution of Audit Service Commission:
III. Approval was given by His Excellency, the Governor for the appointment of qualified personnel into the CRS Audit Service Commission on the 16th October, 2023
6. AUDITOR GENERAL FOR LOCAL GOVERNMENT: WHERE WE WERE BEFORE 29th MAY 2023 AND WHERE WE ARE FROM 29TH MAY 2023 TO DATE.
