The Port Harcourt Chamber of Commerce, Industry, Mines, and Agriculture (PHCCIMA) has conducted a comprehensive review of the 2025 Rivers State Government budget, commending its focus on inclusive growth and development while highlighting areas that require strategic adjustments for maximum impact.

Presented by Governor Siminalayi Fubara, the N1.2 trillion budget represents a significant increase of N388 billion over the previous year’s allocation.

In a report prepared by PHCCIMA her President, Chinyere Nwoga, described the 2025 Rivers State budget as well-researched and ambitious, emphasizing that its success will depend on disciplined implementation and strategic partnerships.

“This budget reflects a genuine effort toward inclusive development, but its full potential can only be realized through prudent execution, stakeholder collaboration, and sustained innovation.”

However, PHCCIMA noted that inflationary pressures, pegged at an average of 32.15% in 2024 by the National Bureau of Statistics, and a steep depreciation of the naira—estimated at 90% year-on-year—have diminished the real value of the budget.

According to the chamber’s analysis, the net present value of the 2025 budget stands at approximately N700 billion, signaling reduced purchasing power compared to 2024.

Despite these challenges, PHCCIMA praised the Rivers State Government for allocating 56% of the budget N678 billion toward capital expenditure. The chamber described this focus as commendable, noting that investments in capital assets could deliver long-term value, particularly in an economic climate of uncertainty.

The chamber lauded the allocation of N31 billion to agriculture and youth empowerment programs, alongside N15.6 billion for social development and investments, as bold steps toward fostering genuine empowerment and inclusive growth.

However, it recommended the creation of a credible youth and women database to ensure effective disbursement of resources and proper monitoring. It also suggested that the government consider a state-wide enumeration project to update population data, which would better inform strategic planning and execution.

PHCCIMA further highlighted the importance of leveraging counterparty multilateral funding opportunities. It estimated that at least 50% of the budget allocated to social programs, totaling no less than N20 billion, could be sourced from partnerships with development agencies aligned with Millennium Development Goals (MDGs).

To drive commerce and attract investment funds, the chamber proposed the introduction of an investor guarantee program, alongside continued efforts to attract new investments and unlock value from existing assets.

The chamber also commended the recently passed Rivers State Electricity Market Bill as a bold legislative move. However, it advised the government to adopt an articulated Public-Private Partnership (PPP) model to attract reputable investors in the power sector.

PHCCIMA pledged its support in helping define private sector expectations for this initiative.

In the health sector, PHCCIMA noted the allocation of N98 billion as a step in the right direction but suggested enlisting consultants to improve internal revenue generation at the Rivers State University Teaching Hospital. The chamber emphasized the need to address revenue leakages and enhance operational efficiency.

On revenue generation, PHCCIMA acknowledged the Rivers State Government’s efforts to raise an additional N100 billion in Internally Generated Revenue (IGR), primarily through statutory allocations, mineral funds, VAT, and escrow accounts. It described the funding structure as commendable, particularly for its reduced reliance on debt.

However, the chamber raised concerns over the absence of financial buffers to mitigate risks associated with fluctuating foreign exchange rates and FAAC allocations.

To strengthen the budget’s implementation, PHCCIMA offered a range of suggestions, including re-enacting the Rivers State Statutory Savings Account to protect assets from devaluation, expanding under-declared and undeclared revenue sources to raise an additional N100 billion, and prioritizing upcountry tax collection in key commercial hubs like Lagos and Abuja.

The chamber also urged the government to clear pension liabilities and implement a revised wage structure to motivate the workforce.

According to PHCCIMA, this move would not only improve employee morale but also attract skilled specialists into the public sector without jeopardizing the balance between capital and operating expenditures.

The report, prepared by PHCCIMA’s Economic Research and General-Purpose Committee, underscores the chamber’s ongoing commitment to fostering economic growth and supporting development efforts across Rivers State.