My mission today is principally
to shed more light on our vision for Delta State predicated upon honest
leadership and a responsible government. We have come into office at a very
difficult and turbulent period in the history of our country. The spectre of
broken promises and the profligate lifestyle of some of those entrusted with
leadership have combined to erode public trust and confidence in government,
and our people are beginning to lose hope.
Our first responsibility as a
Government is to rekindle that hope, and give our people the power to dream
again. Our people are longing for good leadership; they want to see true role
models. Indeed, they want more than a simple change of guard followed by
cosmetic reforms. This is the first crucial test we face as a government.
The starting point for us as
elected leaders is to lead by example. It is a fact of life that people buy
into the leader before they buy into the vision. The followers will always do
what they see the leader do, not what he says. So in our demands, attitudes and
lifestyle choices, we must display the sacrifice, simplicity and discipline
expected of every citizen in our current economic predicament.
STATE OF ECONOMY
Now let me touch a bit on the
state of our economy. Upon my assumption of office, I was formally briefed by
the Permanent Secretary, Ministry of Finance and the Accountant-General of the
State on Tuesday June 2nd on the state of our finances. The highlight of that
briefing is that the revenue receipts from Federation Accounts Allocation
Committee (FAAC) has dipped significantly, dropping to just N8.03 billion in April,(as received in May 2015), from
a high of overN20billion in previous years.
Currently the State is grappling
with a Revenue Bond and indebtedness to commercial banks totaling N98.62 billion (Principal sum), while outstanding
contractual obligations is N538,
601,962,421.50. In 2011, the State Government took a N50 billion facility from the bond market, with a
repayment period of seven years in 84 installments at N1.098 billion each month. This facility will terminate
in September 2018 with 40 more installments (totalingN43.92
billion) to pay with effect from June 2015.
In November 2014, Delta State
also acted as guarantor to some select contractors supported by the issuance of
an Irrevocable Standing Payment Order (ISPO) of N2.23 billion monthly, for
which the contractors received the total sum of N40 billion. The State now
having paid four installments, has 20 more monthly installments totaling N44.60 billion (including interest payments) extending
through year 2017 to pay. We also have a N19 billion and
another N715 million overdraft facility outstanding with Zenith
Bank Plc. Some other smaller loan and overdraft facilities totaling about N2
billion with other banks have to be paid.
As it stands today, a total
monthly deduction of N4.60 billion will
be made from our FAAC receipts with effect from this June through to March
2017, and thereafter N1.098 billion
monthly until September 2018. This leaves us with a balance of N3.4billion assuming the FAAC allocation stays at N8.03 billion. Currently, the receipts from Internally
Generated Revenue (IGR) is about N2.0 billion
monthly, after deducting cost of collection.
IMPLICATIONS
The implication of the above
scenario is that the fund available to run the State is N5.40 billion monthly in the next two years, except
there is a significant rise in oil receipts and therefore FAAC earnings, as
well as our IGR.
Unfortunately, the available fund
of N5.4b is insufficient to offset our monthly wage bill,
let alone fund overhead costs or for government to embark on capital projects.
The State workforce as at May 28, 2015 stood at over 60,000 persons with a
monthly personnel cost of N7,437,940,015.38
inclusive of the N678m State Government’s support to
Local Government Councils for the payment of primary school teachers’ salaries.
The 2015 budget of N409 billion as passed is no longer realistic in the
wake of current realities, which clearly show that our expected revenue is now
far below what was projected. This budget, therefore, has to be reviewed. It is
obvious from available statistics that the State will run a monthly deficit of
about N2 billion, and would need to borrow to pay salaries of
its workers, and finance the running cost of government. This is the dilemma
that we face as we strive to deliver on our campaign promise of prosperity for
all Deltans.
LET US THINK AND PLAN TOGETHER
AND TIGHTEN OUR BELT
I have gone into this much detail
regarding the state of our finances to put the Legislature on the same page
with the Executive, so that we can think together, plan together, and tighten
our belts going forward. The severity of this crisis and our response to it
will shape the future of our beloved Delta State. I am told that when written
in Chinese the word “crisis” is composed of two characters — one represents
danger and the other represents opportunity. I see more opportunities in our
current economic predicament than the threats it poses. Times of prosperity can
easily breed complacency, dull our sensitivity and foster an indulgent
lifestyle steeped in corruption. But because necessity is said to be the mother
of invention, periods of adversity often task our creative abilities, engender
discipline, and imbue us with the capacity to pull together as a family.
We must muster the resolve and
political will to boldly – and decisively – confront the challenges that we
face, right the ship of our State and lay a solid foundation of prosperity both
now and for future generation of Deltans. It won’t be easy. It is not supposed to
be easy. But there is no gain without pain, no prize without a price. A good
place to start is for us to reject the old ways of doing business. First,
beginning with me and this honourable House, we must be ready to make the
necessary sacrifices to reduce the cost of governance. Secondly, the endless
turf battles and approach to legislative action would need to give way to
civility and respect for each arm of government. Thirdly, the House must make
laws that protect and promote the interest of the State and our people.
Fourthly, we must act with the sense of urgency that our current situation
demands, and navigate the ship of state aright.
RESTRUCTURING OF FACILITIES
I have already directed the
Ministry of Finance and the Accountant-General to restructure the Irrevocable
Standing Payment Order (ISPO) on contractors’ guarantee and overdraft facility
over a period of 42 months as a first step to reduce our monthly exposure. We
are frantically working at putting the necessary machinery in place to boost our
IGR, and steps will be urgently taken to plug the loopholes in our revenue
collection process. In our land resource management, action will be taken to
re-certify Certificates of Occupancy (C of O) beginning with our urban
settlements, while MDAs will be made more accountable in the generation of
revenue.
Without doubt, much progress has
been made in infrastructural development of the State by preceding PDP
Governments and it is our intention to further enhance the infrastructural
facilities. As we prioritise the completion of ongoing projects, there is the
need to engage on our urban-renewal plan in order to make our cities more
habitable and environmentally friendly. The Asaba Airport, recently downgraded,
requires urgent attention, and many on-going road projects including the Trans
Warri – Ode Itsekiri Road need to be funded, while the menace of flooding in
some of our key urban settlements such as Asaba and Warri need to be addressed
as a matter of exigency.
SECURITY
In the area of security, we
certainly need to commend the efforts at containing youth restiveness and
militancy which nearly ground our economy to a halt in the wake of our nascent
democracy. It does appear, however, that we are now courting the more invidious
phenomenon of kidnapping, cultism, sea piracy and crude oil theft with its
attendant environmental challenges. We are also faced with intractable
inter/intra communal land disputes, conflicts between oil companies and their
host communities, post-amnesty agitations as well as clashes between Fulani
herdsmen and local farmers. All these constitute serious security issues which
we are obligated to tackle headlong. Security is a very weighty subject and,
deliberately, it is one of the great objectives of our government that need to
be funded.
As part of the efforts at
ensuring the security of life and property, successive governments have sought
meaningful engagement of the youth and the unemployed through investments in
agriculture and wealth creation. The engagements have come in the form of
microcredit schemes and youth empowerment programmes. Unfortunately, most of
these programmes have not created the desired effect as countless number of our
people are still without meaningful employment. As I stated in my inaugural
address, our goal is to “…to enthrone a legacy of wealth
and prosperity for all our people and communities. We are committed to the
building and consolidation of a State in which there shall be more employment
opportunities, a flourishing agriculture and agribusiness sector….”
Agriculture and creation of wealth will therefore receive significant attention
of this administration.
In the effort to drive social
development in the State, I should commend the efforts of previous governments
for the tremendous progress made especially in sports, and youth and women
development programmes. To consolidate these efforts, we will provide further
impetus for social development through effective management of information with
regard to the rich cultural heritage and huge tourism potentials of the state.
It is our firm conviction that if our tourism potentials are harnessed fully,
the frequent recourse to government jobs will be drastically reduced.
HUMAN DEVELOPMENT
The State’s Human Development
policies have over the years focused on the achievement of the Education and
Health related Millennium Development Goals (MDGs) which include:
1. Achieving Universal Primary
Education (Goal 2);
2. Reducing Child Mortality (Goal
4);
iii.
Improving Maternal Health (Goal 5); and
1. Combating HIV/AIDS, Malaria and
other diseases (Goal 6).
These goals culminated in the
free education at the primary and secondary levels of education in addition to
bursary and scholarship programmes. Government also provided free rural health
scheme, free under-5 and maternal health programmes, free ambulance service and
subsidised dialysis. These efforts are commendable. However, lack of learning
and instructional materials as well as neglect of technical education have
created a gap between government investment in education and the output. As a
matter of fact, our educational system needs serious reawakening and overhaul.
Although the health sector has
performed well, the free health programme has limited coverage and with the
current economic realities, the policy needs to be tampered with and replaced
with a comprehensive health scheme through a Universal Health Coverage Scheme
that encourages our people to embrace a health insurance policy with sustainable
outcomes. The situation with the education sector informed the newly enacted
law on Technical and Vocational Education in my first week in office as
Governor of Delta State. The Bill on Comprehensive Health Coverage for Deltans
has just been forwarded to this House through Mr. Speaker.
ROLE OF THE LEGISLATURE
As Honourable Members of the
House, the Constitution requires you to make laws for the peace, order, and
good governance of the State. My charge to you today and to all Deltans, is to
do right at all times and in all situations. Our primary focus as lawmakers
should be the collective well-being of our people and the economic development
of the State. This is the trust that our people have reposed in us as elected
representatives, and I am confident that this Assembly will do us proud.
The legislative arm of government
will carry out its responsibility creditably well when it partners with the
Executive and Judiciary. As the head of the Executive, I offer you
my hands of brotherhood, fellowship, and partnership in the service of the
people of Delta State. As someone with experience as a former
member of the Nigerian Senate, I believe that I am sufficiently acquainted with
legislative duties and procedures to lead by example in forging cordial relations
between our two arms of government. With your understanding, I
promise that the relationship between the Executive and Legislature in Delta
State will be a model worthy of emulation throughout the nation.
For the Executive and Legislature
to work together effectively in the promotion of the well-being of the people
of the State, we should share the same goals, appreciate the challenges
involved in meeting those goals, and agree on the mechanisms to be adopted in
the pursuit of the goals we have set for ourselves as a people, a government,
and a State.
AREAS OF CONCERN
I shall now expatiate on some
issues that are of great concern to me, to members of this chamber, and to the
general public. Shortly after I was sworn in, I caused to be issued the suspension
of:
i.Recruitments by the Civil
Service Commission made after 31st December, 2013 to date;
ii.Payment of 20% Cost of
Collection (CoC) of Internally Generated Revenue (IGR);
iii.Consultancy contracts entered
into by the Board of Internal Revenue and approvals for
1. deductions of IGR Collections by
MDAs pending their review;
v.All contract approvals or
commitments entered into for and on behalf of the State Government from 1st
April, 2015 or any contract tied to the 2015 budget;
Also, within the first week of
taking oath of office, two bills were sponsored by this administration to the
immediate past Assembly viz:
i.Technical and Vocational
Education Board Bill, 2015; and
ii.Delta State Capital Territory
Development Agency Bill, 2015.
The two bills were expeditiously
passed, for which I must thank the Members. As you begin the process of
legislation and your journey in the 6th Assembly, many more Executive Bills
that will impact greatly on the lives of our people will be sponsored. We count
on your support.
I am mindful of the controversy
that the suspension of the civil service recruitment has generated. Nothing is
more difficult, more agonizing, and more painful than for a Government to take
this unpleasant action. But we came to this inescapable decision because the
entire recruitment exercise was riddled with fraud and corruption as it
violated established Civil Service Rules and Regulations. More so, it was not
logical that a State struggling to meet its payroll obligation should employ
more persons. The immediate past administration underscored the failure of the
recruitment process when it suspended the chairman and members of the Board of
the State Civil Service Commission. In essence, if the process was faulty as
they found out, the end result (the recruitment) could not have been otherwise.
I did say in my inaugural address
that we should be ready to make hard choices and take tough decisions that are
imperative for our economic recovery and well-being. While I sympathise with
those affected, you have my highest assurances that in the long term this
decision is for the benefit of everybody. Sometimes things have to get worse
before they can get better. I, therefore, urge honourable members of this House
to explain to their constituents who were affected by the suspension order to
be patient and understand that we do not mean them any harm. We just want to
ensure that the right thing is done.
FOR AN ENDURING PARTNERSHIP
Finally, I seek the partnership
of this House to join me in doing whatever is necessary to bring us out of the
woods and deliver prosperity to all Deltans. The road ahead demands a new
spirit of sacrifice and perseverance and, on our part, a willingness to run an
open, honest government. It is true that the times are hard, but in the words
of the Scripture, if you fail in the day of adversity then your strength is
small. We must, therefore, stay strong, confident, and courageous. There is
need for greater commitment, efficiency, and accountability in service delivery
on the part of all, not least of which is the Civil Service, the Government’s
main vehicle for policy implementation. In measuring outcomes, we must ensure
that workers provide value for salaries earned and there must be zero tolerance
for the “ghost-worker” syndrome.
Mr. Speaker, honourable Members.
I want to assure you of one thing; we shall overcome. And to achieve that, we
must see our calling at this point in time as an invitation to write a new
chapter in the history of our State and make our mark on the sands of time. We
must rise to the occasion and prove to our people that we are ready – and able
– to do the job we were sent here to do. The focus of responsible leadership is
not always about the next election; it is about the next generation.
We would have written our names
in gold if in the next four years Delta State can boast of a functioning public
school system that ensures that the children of the poor are provided quality
education, accessible and affordable primary and secondary healthcare system, a
flourishing agricultural and agri-business sector, and the proliferation of
Micro, Small, and Medium Scale Enterprises (that ensure our teeming youth
population is productively engaged), well planned and environmentally friendly
cities, and integrated rural development. These are our promises to Deltans,
and by God’s grace and guidance, we shall make them good.
·
Being address by Governor Ifeanyi Okowa to members of Delta State
House of Assembly
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