GOV AYODELE FAYOSE PRESENT 2017 BUDGET TO EKITI STATE HOUSE OF ASSEMBLY
TEXT OF THE 2017 BUDGET SPEECH PRESENTED BY THE GOVERNOR OF EKITI STATE, HIS EXCELLENCY, DR. PETER AYODELE FAYOSE, TO THE EKITI STATE HOUSE OF ASSEMBLY ON TUESDAY 6TH DECEMBER 2016.
Distinguished Ladies and Gentlemen.
To the glory of the Almighty God and by the collective will of Ekiti
people, I am here again to present the 2017 Annual Budget to this
Honourable House and the entire citizenry. I am grateful to God and
the entire Ekiti People for the privilege to be in the saddle of
governance at this particular time in the history of our dear State.
2. Our stay in the saddle had not been without challenges. I need not
bore you with the litany of troubles we have faced in the last two
years all with the aim to make us fail, but which, with the help of
God and the support of our people, we combated; we conquered and by
His Grace we are still standing. We can boldly say that God is on our
side, and by Him, we shall continue to triumph gloriously to serve
Ekiti People.
3. I cannot but register my sincere appreciation to Mr. Speaker and
this Honourable House for your unflinching support since you came on
board. As I have had course to remark at various fora, my Government
had received and enjoyed absolute co-operation from this House. I am
proud of your sense of unity and commitment to our vision and mission
to transform Ekiti State to the Land of our dreams. You have
demonstrated consistently that we are one family. On behalf of Ekiti
people, permit me to express my gratitude for the peace you had
allowed this government to enjoy from your honourable selves.
4. Mr. Speaker sir, you are aware that this will be the third budget
to be prepared and executed by this Government. Since inception, we
have used the Annual Budget as the vehicle to translate our Six
Cardinal Programmes to Government Policy. It is common knowledge that
the Annual Budget is not only a constitutional responsibility, but
also an effective and efficient tool for the formulation,
implementation and execution of government’s plans and programmes. It
is a veritable means by which resources available to Government within
a fiscal year are estimated and allocated to socially and economically
productive sectors.
5. Today’s presentation is the culmination of a process that commenced
more than three months ago with the preparation of the 2017-2019
Medium Term Expenditure Framework (MTEF). It is worthy to note that
the House was involved in virtually every segment of the Budget
Process. This accounts for the swift passage of the MTEF document at
this House. In accordance with the extant laws, the 2017 Budget will
be a derivation of the MTEF already adopted by your honourable selves.
You will also recall the series of Executive/ Legislative parleys we
held on the proposed budget. In essence, the budget to be presented
today is a product of collaboration between this Honourable House and
the Executive.
6. I want to use this opportunity to appreciate and commend all of you
for your team spirit and support for this Administration. Our efforts
in Accountable and Transparent Governance have started to yield
fruits. In the 2015 fiscal year, as you will recall, the Civil
Resource Development Documentation Centre (CIRDDOC) rated Ekiti State
as the foremost in Nigeria in terms of transparency in budgeting.
Ekiti State was followed by Cross Rivers, Lagos and Jigawa States.
The Nigerian States Budget Transparency Survey was conducted by an
independent Organization and the result was announced at the launching
of the National Budget Transparency Survey in Abuja. The CIRDDOC
survey was done in collaboration with 36 fiscal governance-focused
Civil Society Organizations (CSOs) in Nigeria with the support from
the British Department for International Development (DFID). This
feat is in recognition of the fact that, responsible and responsive
governance are key to any developmental programmes.
7. This explains our regular interface with Ekiti people through
interactive sessions and the establishment of open channels for
regular feedback. I have exemplified our trust in the people as the
best judges of our performance by keeping them abreast of Government’s
activities. In fact, the input of the people to this Budget could not
be quantified. Prior to the preparation exercise, we held a meeting
with representatives of every community in the State to air their
views on their expectations from the 2017 Budget. I also went round
our communities as well as communed with artisans, market women and
other interest groups all in an effort to capture the collective
aspirations of the people. As a result, the 2017 Budget being
presented today is the outcome of consultations across the broad
spectrum of Ekiti. It is indeed the Budget of the people by the
people and for the people.
8. Before presenting the 2017 Budget, it is essential that I review
our performance this outgoing year. It will be recalled that the 2016
Budget size was N67,044,395,547.91 to be met from the sources
outlined in the table below:
TABLE SHOWING 2016 REVENUE PROJECTION
S/N DETAILS APPROVED
BUDGET 2016 %
DISTRIBUTION
i. Federal Allocation 26,456,276,585.94 39%
ii. Internally Generated Revenue
(including Parastatals) 9,865,566,893.32 15%
iii. VAT 5,850,000,000.00 9%
Iv Draw-Down-External (Grants/Loans) 6,430,911,152.85 10%
v. MDG Conditional Grant Schemes 600,000,000.00 1%
Vi Loan. Internal Loan/Bond 10,000,000.000 15%
Vii Reimbursement from Federal Government on Road Projects 1,000,000.000 1%
viii. Ecological Fund 1,400,000.000 2%
Ix Excess Crude Oil Proceeds + Budget Differential 600,000,000 1%
X Sundry Income: Faac Augmentation, Refund from NNPC & Proceeds from
Sales of Fertilizer 2,341,640,915,80 3%
xi. Others: Sundry Incomes (SURE-P) 0%
Xii Others: Transfer from Prior Fiscal Year. 2,500,000,000.00 4%
TOTAL 67,044,395,547.91 100%
9. In the course of the year, the Budget was revised to a total sum of
N70,553,162,684.61 in response to the realities of the moment. As at
the end of October 2016, the performance of the Budget stood at 89% as
indicated below.
TABLE ii: REVIEW OF 2016 REVENUE PERFORMANCE
S/N
REVENUE SOURCES
REVISED ESTIMATES 2016
PROPORTIONAL ESTIMATES JAN.-Oct. 2016
ACTUAL REVENUE JAN.-Oct. 2016
% PERFOR.
1. Federal Allocation 23,810,648,927.35 19,842,207,439.46 15,900,159,726.46 80%
2. IGR (MDAs) 5,465,470,184.33 4,554,558,486.94 3,131,801,145.66 69%
3. IGR (Tertiary
Institutions) 3,277,202,000.00 2,731,001,666.67 2,779,737,191.30 102%
4. VAT 8,000,000,000.00 6,666,666,666.67 6,222,049,303.15 93%
5. Draw-Down: External
(Grants/Loans) 6,430,911,152.85 5,359,092,627.38 489,797,918.83 9%
6. MDGs-Conditional Grants Schemes (State and
LGAs 1,200,000,000.00 1,000,000,000.00 926,205,480.80 93%
7. Loan-Internal Loan
Bond 11,050,000,000.00 9,208,333,333.33 10,600,000,000.00 115%
8. Grants from Federal Government (Reimbursement on Federal Road
Projects handled by the State 2,000,000,000.00 1,666,666,666.67 - 0%
9. Ecological Fund 1,400,000,000.00 1,166,666,666.67 0%
10. Excess Crude Oil Proceeds + Budget Differential - - 1,084,176,856.61 0%
11. Sundry Income: [FAAC Argumentation, Refund from
NNPC/NGC] 1,000,000,000.00 833,333,333.33 5,427,153,441.80 651%
12. Other: Sundry Incomes - -
2,105,544,331.41 0%
13. Other: Transfer from Prior Fiscal
Year 6,918,930,420.08 5,765,775,350,.07 6,918,930,420.08 120%
14. Total 70,553,162,684.61 58,794,302,237.19 52,452,545,836.25 89%
10. Ladies and Gentlemen, the performance of the 2016 Budget is a
reflection of the State of Nigerian Economy. It must be noted that
Ekiti State is not immune to the shocks and depressions of the
National socio-economic scene. It is no longer news that the economy
of the nation is in trauma and this had impacted negatively on the
finances of the state. We all know that the dwindling revenue from
the Federation Account coupled with the fiscal entrapments of the
Federal Government disguised as bail outs, had adversely affected the
state. Unfortunately, our Internally Generated Revenue (IGR) base
continued to be a challenge. But in the course of the year, we have
introduced certain measures aimed at improving the IGR. Very soon,
they shall begin to yield the desired fruit.
HIGHLIGHTS OF 2016 BUDGET ACHIEVEMENTS
11. Be that as it may, the success of the present Administration in
the State cannot be glossed over, as we have been able to record
remarkable achievements in connection with its six cardinal programmes
which is our covenant with the good people of Ekiti. The progress
achieved throughout the year 2016 will sustainably have a real impact
on the lives of millions of Ekiti people. You are all witnesses to our
performance so far in road construction across the length and breadth
of the state. Some public buildings have been constructed prominent
among which is the Adunni Olayinka Women Development Centre in memory
of our late Deputy Governor. We have commenced the Construction of a
New Governor’s Office and High Court Complex. We have also recorded
modest achievements in Agriculture, Education and other sectors. We
initiated summits in Agriculture and Education to chart the way
forward. Many of the abandoned courses in our tertiary institutions
are now accredited through our efforts. Virtually all our secondary
and primary schools are now well staffed through our SEPIP programme
which provides incentives to teachers in hard-to staff schools. Under
our Stomach Infrastructure policy, we have commenced the monthly
payment of a sum of N5, 000.00 per person to 10,000 poor and
vulnerable citizens across the sixteen LGAs in the state.
12. I must state that our efforts have started to yield fruits.
Recently, Ekiti State came first among the 36 States of the Federation
in 2016 NECO/SSCE Examinations and 11th in WAEC/SSCE. This is a giant
leap from our previous positions at the bottom of the ladder. Since
2014, peace had returned to Ekiti as there has not been a single
political killing. The waves of armed robbery attacks and kidnappings
had been successfully put in check. The activities of Fulani herdsmen
killers have been curtailed by our latest legislation on the matter,
the first and only one of its kind in Nigeria. Gradually, as God
helps us, we are restoring the fortunes of the State in our bid to
actualize the dreams of our founding fathers. With God on our side,
we will not rest on our oars, but will continue to strive hard to
leave the state better than we met it.
13. I cannot but highlight our achievements in the State in the last
one year under the Six Cardinal Programmes of my Administration:
INFRASTRUCTURAL DEVELOPMENT
14. As you are all aware, Economic growth and development in any
economy are functions of conducive and enabling socio-political
environment where standard of living and welfare of the people are
given the deserved attention. This Government within the last one
fiscal year 2016, against all odds, has recorded outstanding
achievements in the following areas:
i. Completion of phase II Ikere-Ekiti Township Road Dualization which
has been commissioned for public use;
ii. Awedele Road, Ado-Ekiti, dualization has been completed and commissioned;
iii. Renovation of Fayose Market at Ado-Ekiti;
iv. Completion of Adunni Olayinka Women Development Centre, Ado-Ekiti;
v. Construction of overhead bridge at Ado-Ekiti is on-going;
vi. Construction of new modern King’s Market (Oja Oba) in Ado-Ekiti is on-going;
vii. Dualization of Efon Township Road is on-going;
viii. Dualization of Omuo Township Road is on-going;
ix. Dualization of Ikole Township Road is on-going;
x. Dualization of Emure Township Road is on-going;
xi. Dualization of Ise Township Road is on-going;
xii. Patching of Iropora-Ara Road;
xiii. Patching of Epe-Ijero Road;
xiv. Patching of Awo-Ijero Road;
xv. Construction of New Governor’s Office within the Government House
premises is on-going;
xvi. Construction of New High Court Complex is on-going;
xvii. Ilupeju-Ire Road is on-going;
xviii. Iluomoba-Igbemo is on-going;
xix. Dualization of Mugbagba-Odo Ado Road is on-going;
xx. Rehabilitation of Government House internal Road is on-going; and
xxi. Rehabilitation of Government House Chalets.
15. This Administration has intensified efforts towards
rehabilitating all the existing Dams in the State, and to replace old
and damaged water pipes to ensure improved and stable supply of
hygienic water to all communities in the State. All hands are on desk
toward sustainable electricity supply across the State. To achieve
this, Government has been supporting the Management of Benin
Electricity Distribution Company (BEDC).
EDUCATION, SCIENCE AND TECHNOLOGY:
16. This Administration has invested considerably in the development
and improvement of the Education sector in order to revive,
resuscitate and regain our lost glory in the Education sector. In this
direction, the State government under my watch has recorded the
following successes in the sector.
i. Ekiti State came first in NECO Examination in the 2016 fiscal year;
ii. Education summit had been successfully held to design road map for
advancement of education sector in the state;
iii. The State Government has maintained a very good partnership
relationship with the World Bank on funding the State Education
Programme Investment Project (SEPIP);
iv. Successful celebration of Teachers’ Day where tangible prizes
including cars were distributed to the Best Teachers in the Public
Service of Ekiti to further boost their morale, motivate and encourage
them to effectively and efficiently discharged their duties; and
v. Renovation of all dilapidated laboratories buildings in Public Schools.
DEVELOPMENT OF AGRICULTURE:
17. We are determined to ensure that our economic strength and
comparative advantage in Agricultural sector are tapped for greater
utilization. As we are all aware, outside the Federal Allocation,
Agriculture is the second largest source of income to the State.
Hence, this Administration has directed its policy thrust toward
provision of enabling environment capable of repositioning the sector
for optimal productivity which in turn will provide food security for
the good people of our dear State by making food available on their
table sustainably.
The following achievements have been recorded in the sector within
2016 fiscal year:
i. Conduct of Agricultural Summit to chart a course for the
development of the sector
ii. Government during the period under consideration purchased clip
seals for grading of farm produce;
iii. The Ministry of Agriculture is currently raising 500,000 hybrid
cocoa seedlings for transplanting in the New Year in order to increase
cocoa production in the State.
iv. Establishment of Five (5) Hectares parenter Cocoa Garden; and
v. Purchase of 10 veterinary surgical equipment and furniture for
ultra-modern veterinary clinic.
HEALTH CARE SERVICES:
18. As the saying goes, Health is wealth. This is the major reason why
universal Health Care Delivery through effective and efficient
functioning Health Care facilities across the State at all levels has
been of great concern to this Administration. The following successes
have been recorded in the last one year:
i. Provision of free “Oju Ayo” glasses for the people with eyes
challenges across the State;
ii. In the last one year, this Administration has provided free
medical services for children under five years and pregnant women;
iii. Maternal Healthcare, disease control and effective private
health practitioner regulation have been greatly improved under this
Administration in the last one year;
(iv) This Administration has expended about N10,000,000.00 (Ten
Million Naira) on control of other communicable diseases such as Ebola
in the period under review.
EMPOWERMENT:
19. I have a simple message! We are strong and creative enough to
manage and overcome our economic challenges. All of us want jobs,
thriving businesses, engaged professionals, narrowing inequality and
eliminating poverty in the State. This is why this Administration is
positioned to empower every Ekiti people to prosper in their chosen
careers. Under our Empowerment programs, the State Government has
achieved the followings:
i. Distribution of food stuff and other materials to the vulnerable
groups under Stomach Infrastructure Scheme;
ii. Payment of N20,000 each to 500 Tailors in the 16 Local Government Areas;
iii. Payment of N50,000 each to 200 Artisans in the 16 Local Government Areas;
iv. Payment of N5,000 each to 5000 beneficiaries across the 16 Local
Government Areas; and
v. Payment of N5,000 each to Physically Challenged on a Monthly basis.
THE 2017 BUDGET
20. My good people of Ekiti State, the 2017 Budget will be a landmark
for me. As my tenure terminates in October 2018, next year is the
last full year that I have to consolidate on the achievements of the
past two years. My focus therefore in the 2017 Budget is to complete
all ongoing projects, as it is not my desire to leave uncompleted
projects for my would-be successor. However, some deserving new
projects have been accommodated in the proposals.
OBJECTIVES OF THE 2017 BUDGET:
21. Based on the foregoing, the policy thrusts of the 2017 Budget
include but not limited to the following:
i. Completion of all critical on-going capital projects that are
central to the Six (6) Cardinal Programmes of the Government;
ii. To improve on the level of Internally Generated Revenue and
monitor same for the purpose of blocking all leakages of Government
revenue;
iii. A proper monitoring of income and expenditure of Government for
transparency;
iv. To curtail extra-budgetary spending;
v. Improvement in the quality of Education;
vi. To provide qualitative health services;
vii. Sustenance of good governance through Budget discipline, probity
and accountability in the utilization of Public funds;
viii. Improving on the socio-economic policy environment which is the
bench mark of the Government Six (6) Cardinal Programmes;
ix. To guarantee sustainable Agricultural Production with a view to
ensuring food security, alleviating poverty, providing employment and
to encourage Private Sector participation in Food Production; and
x. To Motivate the Public Service for effective and efficient service delivery.
22. The size of the 2017 Budget is N93,456,399,143.40 to be derived
from the following sources:
(i). Federal Allocation - N31,000,000,000.00
(ii). Internally Generated Revenue (MDAs) - 7,000,000,000.00
(iii). IGR (Tertiary Institutions) - 3,928,010,058.12
(iv). VAT - 10,000,000,000.00
(v). IDA (Education Intervention Fund) - 3,381,400.000.00
(vi). Draw-Down: External (Grants/Loans) - 8,391,989,085.28
(vii). MDGs Conditional Grants Schemes
(State and LGAs) - 1,200,000,000.00
(viii). Internal Loan - 4,000,000,000.00
(ix). Grants from Federal Government
(Reimbursement on Federal Road Projects
Handled by the State) - 3,500,000,000.00
(x). Ecological Fund - 1,000.000.000.00
(xi). Excess Crude Oil Proceeds + Budget
Differential - 1,500,000,000.00
(xii). Sundry Incomes: (FAAC Augmentation,
Refund from NNPC - 5,555,000,000.00
(xiii). Others: Sundry Incomes - 1,000,000,000.00
(xiv). Paris Club (Refund of Differentials) - 6,000,000,000.00
(xv). Others: Transfer from Prior Fiscal Year - 6,000.000.000.00
TOTAL 93,456,399,143.40
23. The budget size is about 33% above the 2016 revised figure of
N70.5 billion. Let me state here that it is not our intention to
bloat the budget figure beyond what our revenue can handle. In
arriving at this figure, we took into consideration various
Parameters, Assumptions and Indications. Issues like the Exchange
rate, inflation figure, Crude oil price, Oil Production and Inflation,
among others dictate that the budget should be far above our
projections. But in our characteristic manner, we chose to be
conservative believing that it is better to budget within achievable
limits rather than overload the budget document with unrealistic
figures.
EXPENDITURE
24. As usual, the Budget consists of Recurrent and Capital heads. On
the Recurrent side, a sum of N55,028,891,248.80 representing 59% of
the total budget will be expended for the day to day running of
Government as follows:
(i) Personnel Cost - N16,566,429,583.84
(ii) Other Charges - 2,587,000,158.79
(iii) Recurrent Grants to Tertiary
Institutions - 8,965,659,199,02
(iv) Transfer to other Funds - 9,224,366,722.28
(v) Consolidated Revenue Fund
Charges - 17,685,405,534,97
TOTAL - N55,028,891,248.80
25. The Recurrent Expenditure is just about 2% above current year’s
projections. This is a reflection of our resolve to cut costs in
order to free more funds for capital development. Nevertheless,
enough provisions have been made for salaries and allowances of Public
Servants, their promotion and necessary but minimal recruitment. Our
tertiary institutions shall continue to enjoy Government support
within the limits of our resources. Finally, we have made allowance
for Pensions and Gratuities while a large chunk of the Consolidated
Revenue Fund Charges goes into Debt servicing.
CAPITAL EXPENDITURE
26. Mr. Speaker sir, in our bid to ensure rapid development and
transformation of our dear State, a sum of N38,427,507,894.60 is
earmarked for Capital Projects. This is 41% of the total Budget. The
breakdown to the key sectors is as follows:
S/N CAPITAL
ESPENDITURE 2016
REVISED
ESTIMATES 2017
Proposed
Estimates %
DISTRIBUTION
1. Economic Sector 13,596,530,880.00 17,983,234,093.33 19%
2. Social Sector 857,981,183.09 7,348,077,885.78 8%
3. Environmental 745,557,656.99 1,585,000,000.00 2%
4. Administrative Sector 4,075,263,220.73 11,511,195,915.49 12%
5. TOF Capital 3,077,728,946.00 - -
6. TOTAL CAPITAL EXPENDITURE 22,353,061,886.81 38,427,505,894.60 41%
It will be noted that the projects to be executed cut across every
sector of our Six Cardinal Programmer. A large percentage however is
allocated to infrastructure in our bid to ensure transformation of our
Landscape with good roads, Modern Public Buildings, Potable Water and
such like. Our Social Security Scheme will receive additional boost
with provision for widows and women empowerment. The ongoing works on
the Ado Ekiti Flyover bridge, Oja Oba Modern Market, Ikere Road
Dualization, Construction of Governor’s Office and High Court Complex
among others shall continue. We shall also dualize more roads in some
Local Government Headquarters. We hope to complete some ongoing rural
electrification projects and start new ones in Ile Ona, Iwaji, Igeede,
Ilokun and Aba Igbira Waste Plant among others. We intend to boost our
capacity in Agriculture by supporting our farmers in Cocoa and Rice
production.
27. These and many more form the thrust of the Capital Budget. The
Honourable Commissioner for Budget and Economic Planning will provide
the detailed Analysis at a later date. Suffice to say that this is a
budget encapsulating our collective desire for growth and development.
This shall be our pursuit in the New Year as we strive to consolidate
on what we have done so far. It is designed to take Ekiti to a higher
pedestal. Our overall goal is that Ekiti will be second to none in the
provision of social amenities, infrastructural development, Education
and Security of Lives and Property. The 2017 Budget is consequently
named our BUDGET OF CONSOLIDATION AND HIGHER HEIGHTS.
28. Distinguished Ladies and Gentlemen, together, we need to uplift
our dear State by discharging our corporate and individual
responsibilities, we all have obligations which we must be ready to
meet, and by the grace of God, we shall take Ekiti to greater heights.
I therefore, implore all and sundry to support my Government by
fulfilling your civic responsibilities to the State by regularly
paying your taxes and fees in order to have resources to meet our
collective aspirations.
29. Mr. Speaker, I have just presented to this Honourable House and
the good people of our dear state our goals and aspirations for the
next twelve months. To me, it represents a landmark as it is a Budget
aimed at consolidating our achievement so far in the last two years.
It is our hope that in the next one year, we would have put in place
what can be referred to as our legacy as we prepare for the 2018
election. As I conclude, I enjoin all and sundry to join hands with
us to move this state forward. We have only one state. We are one
people and our destiny is tied to this state. Let us all work together
to make Ekiti a better State than we met it.
30. Finally, I wish the Honourable House Fruitful Deliberation as they
consider the Budget Proposals for appropriation. I also wish you all a
Merry Christmas and Happy New Year in advance.
31. Thank you and God bless.