2018 BUDGET ADDRESS BY HIS EXCELLENCY,
SENATOR, DR IFEANYI OKOWA, GOVERNOR OF DELTA STATE, TO THE DELTA STATE HOUSE OF
ASSEMBLY, ON THURSDAY, OCTOBER 19, 2017.
Mr Speaker
Honourable Members
2. I am pleased to present before this honourable House the
proposed 2018 Budget. I do so in an atmosphere of renewed hope and optimism.
The positive economic indices emerging from the National Bureau of Statistics
for the second quarter of this year may have signalled an end to perhaps what
has been the longest running recession in the country.
3. In addition, peace has returned to the Niger Delta and oil
export from Forcados trunk has commenced. We are hopeful that the Federal
Government will put measures in place to enforce its directive to oil companies
to locate their head offices in their areas of operation. If implemented, this
will not only enhance our internal revenue generating capacity, it will also
create employment opportunities, engender trade and commerce and give the
needed fillip to the State’s economy.
4. Overall, the fiscal outlook is promising and Nigeria may well
be on the path of economic recovery and growth, with all the favourable
implications that this has for us to fully realise our vision as encapsulated
in the S.M.A.R.T agenda. As you are well aware, the vision and values of the
S.M.A.R.T agenda form the building blocks of the Delta State Medium Term
Development Plan (2016-2019) with the following policy priority areas:
- Combat the perennial problem of youth restiveness by adopting
cross-sectoral, multi-pronged approach to job and wealth creation with strong
emphasis on raising entrepreneurial leaders to drive the economic
diversification of the State;
- Promote civic engagement in our communities and create the
peaceful atmosphere necessary for development to take place;
- Make agriculture regain its pride of place in the economy
through specific policies and programmes geared at making farming more
attractive to the youth, stimulate and boost farm yields, and develop the
agricultural value chain;
- Lead in the provision of universal healthcare coverage and
cutting edge technology for broad-based and excellent service delivery
essential for a healthy and productive populace;
- Build an educational system that will raise products whose
educational advantage will help them to become thinkers, innovators, leaders,
and managers that will excel globally;
- Partner with relevant stakeholders/investors to attract
infrastructural funding to build liveable cities and towns for the benefit and
enjoyment of current and future generations;
- Develop leadership skills across all strata of the civil
service establishment and among the political class; and
- Build organisational capacity through good governance
structures in the various Ministries, Departments and Agencies of Government
for efficient, effective and timely service delivery.
5. In this context, it is important that I begin my presentation
of the proposed 2018 Budget by briefly recounting the progress we have made
halfway through our current tenure.
6. Rising above Recession: One of the major achievements of our
administration is stabilising the ship of state in the wake of the recession
that swept through the country. Confronted with dwindling receipts from the
Federation Account and Internally Generated Revenue vis-à-vis inherited
contractual obligations, the first challenge we faced was the payment of
salaries to the huge workforce.
7. To put it in context, the total staff strength of the Federal
Civil Service is about 89,000. As at the time we assumed office on May 29,
2015, Delta State had over 60,000 workers on its payroll. However, we were able
to meet our obligations to the workers through debt payment re-scheduling,
cutting waste, contracts reviews, and prudent management. As part of the
on-going biometric exercise to weed out ghost workers, the State has been able
to prune the size of the workforce to 55,000, which is still very high compared
to that of peer States.
8. Considering the recessionary shocks that reverberated through
the economy, it is no mean feat that we have not defaulted in paying our staff
since the inception of this administration. We have paid all salaries to date
and supported Local Government Councils in their constitutional responsibility
of the payment of salaries in excess of N5b. We have also consistently made
monthly provision towards the payment of the State’s obligation to the
Contributory Pension Scheme and, indeed, paid out a lump sum of N2.5b in two
tranches to cushion arrears. All other outstanding liabilities are being given
priority attention even as we proactively engage with organised labour to
reconcile whatever discrepancies may exist in terms of actual outstanding
liabilities.
9. Wealth Creation: Job and wealth creation is the centrepiece
of the S.M.A.R.T agenda, and the critical point of reference on which this
administration will be assessed now and in the future. As a Special Purpose
Vehicle, the Job Creation Office was created to design programmes to equip
unemployed youths (graduates and school leavers) with the vocational skills,
mind-set and resources to become self-employed and employers of labour. The
design and implementation of the Job Creation Scheme is trainee-centred,
service-oriented and results-based. The Scheme is being implemented along four
paths namely:
- Skills Training and Entrepreneurship Programme (STEP)
- Youth Agricultural Entrepreneurs Programme (YAGEP)
- Special Programme for Persons with Disabilities (PwDs)
- Graduate Employment Enhancement Programme (GEEP)
10. So far, a total of two thousand three hundred and twenty four (2,324) unemployed youths including fifty one (51) Persons with Disabilities (PwDs) have been trained and established in enterprises of their choice. Another 4,000 youths were trained in vocational centres across the State. Under the State Employment and Expenditure For Results (SEEFOR) project to which the State has contributed N600m as counterpart fund, 5,312 youths were employed and trained on building their self-esteem, savings culture and entrepreneurship to sustain their livelihood. When we add these figures to the over 42,000 private sector jobs that were created by programmes and projects of the various Ministries, Departments and Agencies, we can clearly see that a new era beckons in Delta State.
- Youth Agricultural Entrepreneurs Programme (YAGEP)
- Special Programme for Persons with Disabilities (PwDs)
- Graduate Employment Enhancement Programme (GEEP)
10. So far, a total of two thousand three hundred and twenty four (2,324) unemployed youths including fifty one (51) Persons with Disabilities (PwDs) have been trained and established in enterprises of their choice. Another 4,000 youths were trained in vocational centres across the State. Under the State Employment and Expenditure For Results (SEEFOR) project to which the State has contributed N600m as counterpart fund, 5,312 youths were employed and trained on building their self-esteem, savings culture and entrepreneurship to sustain their livelihood. When we add these figures to the over 42,000 private sector jobs that were created by programmes and projects of the various Ministries, Departments and Agencies, we can clearly see that a new era beckons in Delta State.
11. These job creation programmes are transforming the lives of
previously unemployed youths. Across the State, there are testimonies of
successful start-ups and viable small businesses by those who were trained and
established under the programmes. Some have grown to become employers of labour
and are training other youths to become self-employed. Others have innovatively
diversified into other businesses and trades to enhance their incomes and
survival.
12. In addition, through GEEP, the State Government has created
the first-ever electronic database of unemployed youths in Delta State. This
database is now accessed by private sector organizations and employers of
labour on an on-going basis. All of these developments have immense potentials
for improved living standards for a substantial number of Deltans. As further
testimony of the success of the Job Creation Scheme, it has been validated for
partnership with the World Bank European Union funded SEEFOR project.
13. Under the Delta State Micro-credit Scheme, eight hundred and
thirty-five million, seven hundred thousand naira (N835,700,000) has been
disbursed to five hundred and ninety-three (593) cooperative societies,
comprising six thousand two hundred and fifty-two (6,252) beneficiaries in the
twenty-five (25) Local Government Areas. The enterprises cover trading,
agri-business, manufacturing with active participants such as market women,
artisans, and small farm holders.
14. Education: Upon assumption of office, we formulated a
technical and vocational oriented education policy with the objectives of
boosting literacy, expanding quality education and developing skilled human
resources. Arising from the intervention in the Technical and Vocational
Education and Agricultural Training (TVEAT) institutions, student
enrolment has increased by 22% while pass rate in Technical
Subjects has improved by 59%. In addition, the six technical colleges in the
State have been repositioned to deliver teaching and learning innovation to
prepare the products for leadership and business success.
15. This administration has also embarked on massive
infrastructural upgrade of facilities across selected public primary and
post-primary schools in the State. So far, we have constructed a total of 560
classrooms and renovated another 599. Within the same period, a total of 59,267
classroom furniture and 7,884 teachers’ furniture were provided by this
administration. In addition, we have completed the infrastructural upgrades in
four model secondary schools namely;
- Ogbemudein College, Agbor;
- Owa Model College, Boji Boji Owa;
- Alema College, Abigborodo, Warri; and
- Burutu College, Burutu.
- Owa Model College, Boji Boji Owa;
- Alema College, Abigborodo, Warri; and
- Burutu College, Burutu.
Work is currently in progress in the following model schools:
i) Government Secondary School, Ughelli (Former St. Theresa)
ii) Emore College, Oleh
iii) Ashaka Mixed Secondary School, Ashaka
iv) Ogini Grammar School, Ogharefe
16. To increase access to quality and functional basic and
secondary education, we have considered and approved the establishment of
twenty five (25) new schools comprising eight primary and seventeen post
primary schools. For quality assurance, we have also undertaken a complete
review of books for the secondary school system for improved curriculum
delivery. Following the outcomes of the Education Summit in 2016, a Teachers
Professional Development Centre is to be established in the State to facilitate
manpower development in tandem with our policy on human capital development and
professionalisation.
17. Infrastructure and Rural Development: We are working hard at
urban renewal while striving to open up the rural areas to be part of the
global economy. A total of 697.36 km roads and 208km of drains have been
embarked upon by this administration. Of this figure, 276.63 km roads are in
the rural areas.
18. Under SEEFOR’s Community Driven Development (CDD) social
sub-component, over 300,000 Deltans in 42 communities now have access to
socio-economic services such as electricity extension, water, skill acquisition
centres, and multipurpose town halls. On the CDD Economic stream being
implemented by Fadama III, over 199 subprojects have been completed in 20
communities and 15 rural infrastructure sub-projects (block of market stalls,
boats, boreholes etc). To date, about 26,000 persons have access to
socio-economic services in these rural communities.
19. Environment and Urban Renewal: Environmental transformation
through urban renewal is one of the pillars of our S.M.A.R.T agenda. Three
major factors have impacted seriously on our environment. The first is our fast
growing population, the second is our status as an oil producer, and the third
is our peculiar location as a coastal State.
20. Consequently, we are confronted with environmental hazards associated
with oil and gas exploration, solid waste disposal/management, erosion and
flood control, land degradation, deforestation and the increasing risks from
climate change.
21. This administration has taken action to end the perennial
flooding of the state capital and other key towns and cities across the State.
While work is on-going to ensure storm water control in Asaba, a comprehensive
drainage Master Plan for the territory is nearing completion. In the meantime,
we have entered into partnership with the World Bank-assisted Nigeria Erosion
and Watershed Management Project NEWMAP).
22. We have already paid the sum of 500 million naira being our
counterpart fund for the NEWMAP project, and an additional 30 million naira as
start-up fund.
23. Health: In fulfilment of our pledge to deliver accessible,
affordable and qualitative healthcare, the Delta State Contributory Health
Commission was established in 2016. With just N7, 000 as premium, the health
insurance scheme is already providing pre-paid health services to 112,169
registered enrolees. The scheme is currently functional in 63 secondary
healthcare centres, while 97 primary healthcare facilities in the State have
been designated to commence provision of services under the scheme.
24. The Free Maternal and the Free Under-Five Healthcare
programmes that were initiated by the previous administration in 2007 and 2010
respectively, are still being implemented. In January 2017, the financing of
these programmes was taken over by the Delta State Contributory Health
Commission. As at July 2017, total enrolment of these categories of people in
the scheme stood at 71,350 (under 5 - 44,445; maternal – 26,905). Registration
of civil servants under the scheme has commenced and is currently in progress.
Sustaining the Free Maternal and the Free Under-Five Healthcare programmes has
been critical in ensuring that the maternal mortality ratio and under-five
mortality in the State remain the lowest in the country.
25. We have infused vigour and vitality into the teaching
hospital at Oghara with critical personnel changes and the overhauling of the
MRI and CT scan facilities that are now functional. In addition, we have
instituted Public-Private Partnership for some diagnostic services to ensure
sustainability, and a grant of N142m was released to the institution to meet
pressing needs. Infrastructural work at the Asaba Central Hospital has
continued to receive priority attention from this administration and is now
almost 70% completed.
26. The health sector has received significant penetration of
information technology with the signing of the Memorandum of Understanding
(MoU) with Instrat Global Health Solutions. This is a pilot project in
partnership with Instrat Global Health Solutions to digitize data management
processes in our primary and secondary health facilities and eliminate the
challenges associated with manual collation and assessment of data.
27. With a unique software, ‘CliniPAK,’ some of our healthcare centres are now able to streamline electronic medical records, data capture and a reporting system that would cover patient registration and demographics, vital statistics, diagnosis, treatment, case review and administrative task support, lab order management, pharmacy distribution and inventory control, as well as patient flow management. The software also offers both workflow and forms-based data capture at the point of care and real time access to patient records and reporting tools. This digitisation process is a big boost to the State’s implementation of the Saving One Million Lives Programme for Results.
27. With a unique software, ‘CliniPAK,’ some of our healthcare centres are now able to streamline electronic medical records, data capture and a reporting system that would cover patient registration and demographics, vital statistics, diagnosis, treatment, case review and administrative task support, lab order management, pharmacy distribution and inventory control, as well as patient flow management. The software also offers both workflow and forms-based data capture at the point of care and real time access to patient records and reporting tools. This digitisation process is a big boost to the State’s implementation of the Saving One Million Lives Programme for Results.
28. Agriculture and Food Security: Our commitment to agriculture
runs deep. Our fundamental objective is to make agriculture a major growth
driver in the State because of its capacity to generate employment and sustain
life.
29. The co-location of YAGEP beneficiaries in various clusters
is transforming the agricultural landscape of the State. The cluster model of
establishing the YAGEP trainees has energized the development of previously
idle agricultural resources and promoted common application of modern
high-productivity agricultural systems and techniques among youths.
30. Over 4,000 participants are currently enlisted in the CBN
Anchor Borrowers Programme. They are benefiting in the production of commodities
where we have comparative advantage, namely rice, aquaculture and cassava. In
line with the sustainability plan for YAGEPreneurs, the State Government has
admitted them for participation in the Anchor Borrowers’ Programme. We have
also gone far in our agro-industrial park programme in partnership with foreign
and local investors, and have continued to support the private sector to invest
massively in the agricultural sector.
31. Finance and Investment: In our continuing efforts to make
Delta the preferred destination for investors, the Delta State Investment
Development Agency Bill was signed into law on Tuesday, 25th July, 2017. DIDA
will remove the opaqueness usually associated with government business. The
agency will proactively engage with the private sector to actualise their
investment and business plans in the State by laying out transparent guidelines
required to invest in the State.
32. Our partnership with the private sector is of utmost priority to us and we are pursuing it with relentless vigour. The State’s PPP Model is already yielding results with agreements already signed for the Delta Commercial City Project, Delta Rest Park, Asaba Integrated Power Project, Warri-Effurun Water Scheme, Agro-Industrial Parks and housing projects in the State.
32. Our partnership with the private sector is of utmost priority to us and we are pursuing it with relentless vigour. The State’s PPP Model is already yielding results with agreements already signed for the Delta Commercial City Project, Delta Rest Park, Asaba Integrated Power Project, Warri-Effurun Water Scheme, Agro-Industrial Parks and housing projects in the State.
33. Public Administration and Good Governance: The civil service
establishment is being reenergised to make it more proactive and
people-centric. We are continuing our efforts to enforce compliance with extant
laws and the various existing circulars to ensure efficiency, speed,
transparency and accountability. The current biometric exercise has helped to
clean up the payroll and instilled discipline in the rank and file through
regular and timely resumption of work.
34. We have commissioned the construction of an ultramodern Central Secretariat complex. When completed, the new secretariat will not only ensure better coordination and synergy among the various MDAs, it will also save the Government huge sums of money in rents.
34. We have commissioned the construction of an ultramodern Central Secretariat complex. When completed, the new secretariat will not only ensure better coordination and synergy among the various MDAs, it will also save the Government huge sums of money in rents.
35. The Philosophy and Thrust of 2018 Budget:
Mr Speaker, the proposed 2018 Budget is formulated within the context of the successes - and challenges - of the past two years. It seeks to essentially consolidate the gains of the past as we strive to build an economy that works for everyone. As I did say in my inaugural address, people have very high expectations from this government. That has sometimes exerted serious pressure on political office holders and other top government functionaries.
Mr Speaker, the proposed 2018 Budget is formulated within the context of the successes - and challenges - of the past two years. It seeks to essentially consolidate the gains of the past as we strive to build an economy that works for everyone. As I did say in my inaugural address, people have very high expectations from this government. That has sometimes exerted serious pressure on political office holders and other top government functionaries.
36. We are determined to make good our commitments to the people
of Delta State. That should never be in doubt. However, we can only do that
within the limits of available resources. Therefore, not being swayed by
sentiments or emotion, the proposed 2018 Budget is derived from the Fiscal
Strategy Paper projections for years 2018 to 2020 and in compliance with
International Public Sector Accounting Standards (IPSAS). It is a Budget of
Hope and Consolidation. I am confident that in the unlikely event of any
internal or external shocks, we will be fine as long as we continue in our
tradition of fiscal discipline, prudence and accountability.
37. Before unveiling the details of the 2018 budget proposal,
please permit me, Mr Speaker, to do a brief review of the 2017 approved budget.
REVIEW OF THE PREFORMANCE OF 2017 BUDGET (January – September)
38. Mr Speaker, a review of the 2017 approved budget shows that
the budget size was based on revenue projections from the State’s Fiscal
Strategy Paper (FSP), which is a key element in the Medium Term Economic
Framework (MTEF) and annual budget process that determines the aggregate
resources available to fund the Government’s projects and programmes from a
fiscally sustainable perspective. The profile of the 2017 budget is as follows:
(A) REVENUE.
S/N
Sources
Approved 2017 Budget
% Appropriation
I
Internally Generated Revenue
70,165,959,503
23.83
Ii
Statutory Allocation Including Mineral Revenue Derivation
148,939,012,121
50.58
Iii
Value Added Tax
10,515,786,230
3.57
Iv
Other Capital Receipts
64,836,282,62322.02
Total
294,457,040,472100.00
(B) EXPENDITURE
S/N
Details
Approved 2017 Budget
% Appropriation
I
Recurrent Expenditure
158,013,660,828
57.16
Ii
Capital Expenditure
136,443,379,649.
42.84
Total
294,457,040,472
100.00
(A) REVENUE
S/N
Sources
Approved 2017 Budget
% Appropriation
I
Internally Generated Revenue
70,165,959,503
23.83
Ii
Statutory Allocation Including Mineral Revenue Derivation
148,939,012,121
50.58
Iii
Value Added Tax
10,515,786,230
3.57
Iv
Other Capital Receipts
64,836,282,623
22.02
Total
294,457,040,477
100.00
(B) EXPENDITUERE
S/N
Details
Approved 2016 Budget
% Appropriation
I
Recurrent Expenditure
158,013,660,828
53.66
Ii
Capital Expenditure
136,443,379,649
46.34
Total
294,457,040,477
100.00
BUDGET PERFORMANCE (JANUARY TO SEPTEMBER, 2017): REVENUES
39. The State Government, during the period under review
generated N127.1b, representing a performance of 57.5% over the expected
proportionate revenue receipts of N220.8b. Out of this amount, the sum of
N83.6b was received as Statutory Allocation from the Federation Account. The
amount represents 74.9% performance over the proportionate estimate of N111.7b.
40. On the other hand, the sum of N8.3b was recorded as receipts
from Value Added Tax (VAT) out of the proportionate projected estimates of
N7.8b, representing a budget performance of 106.21% for the period under
review.
41. The sum of N35.0b was recorded as Internally Generated
Revenue (IGR) out of the proportionate projected revenue of N52.6bn, representing
a budget performance of 66.67%.
42. The breakdown of the revenue receipts for the period January
– September, 2017 from individual revenue sources is summarized hereunder:
BUDGET PERFORMANCE (JANUARY TO SEPTEMBER, 2017): EXPENDITURES.
43. Our expenditure profile for January to September, 2017 shows
that the total sum of N127.0b was spent. Out of this amount, the sum of N104.2b
was incurred on recurrent items, as against a proportionate approved budget of
N118.5bn, representing a budget performance of 87.97%. The breakdown of the
recurrent expenditure is summarized below:
44. The sum of N136.4b was budgeted for Capital Expenditure.
During the period under review (January - September, 2017), the sum of N22.7b
was spent against the proportionate budget figure of N68.2b, which represents a
performance of 33.41%. This is, however, not a true reflection of the level of
jobs accomplished/completed within the comparable period, which stands at about
47.05%. We were constrained by our cash flow and weather conditions. We,
however, look forth to a better 4th Quarter with improved funding.
45. A breakdown of the sectoral performance for the period is as
follows:
2018 BUDGET ESTIMATES
46. Mr. Speaker, distinguished Members of this honourable House,
I now present to you the Budget Estimates for the 2018 fiscal year.
47. I wish to announce a budget proposal of N298.078bn for the
services of Delta State Government in 2018. This amount comprises the sum of
N147.5bn or 49.48% for recurrent expenditure, and N150.5 or 50.52% for capital
expenditure. The summary is as follows:
SN
Expenditure item
Amount
% percentage
1
Recurrent
147,487,809,897
49.48
2
Capital
150,590,669,000
50.52
Total
298,078,478,899
100.00
48. The 2018 budget proposal shows an increase of N3.62bn or
1.21%, compared to the 2017 approved budget of N294.4b.
SOURCES OF FUND
49. The main sources of funds for the 2018 budget as proposed
are as follows:
S/N
Sources
Approved 2017 Budget
Proposed 2018 Budget
% Proportionate
I
Internally Generated Revenue
70,165,959,503
71,360,419,715
23.94
Ii
Statutory Allocation Including Mineral Revenue Derivation
148,939,012,121
178,056,627,329
59.73
Iii
Value Added Tax
10,515,786,230
10,767,532,297
3.61
Iv
Other Capital Receipts
64,836,282,623
37,893,899,556
12.72
Total
294,457,040,477
298,078,478,899
100.0
INTERNALLY GENERATED REVENU
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