EKITI: Fayose Presents N70.5bBudget for 2017 to Ekiti State House of Assembly

…Says it’s a Budget of Consolidation and Higher Heights.

The governor of Ekiti state, Mr Ayodele Fayose today presents to the state house of assembly a budget of N70.5billion for approval.

The budget which he tagged “budget of consolidation and higher heights” is to consolidate on the achievements of the governor 2 year achievements in the office. Mr. Fayose promised to complete all ongoing projects as he will not want to leave office without completing all ongoing projects.

 

Below is the full text of the speech.

 

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 6^TH 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 11^th 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:
15. Completion of phase II Ikere-Ekiti Township Road Dualization which has been commissioned for public use;
16. Awedele Road, Ado-Ekiti, dualization has been completed and commissioned;

• Renovation of Fayose Market at Ado-Ekiti;

1. Completion of Adunni Olayinka Women Development Centre, Ado-Ekiti;
2. Construction of overhead bridge at Ado-Ekiti is on-going;
3. Construction of new modern King’s Market (Oja Oba) in Ado-Ekiti is on-going;

• Dualization of Efon Township Road is on-going;
• Dualization of Omuo Township Road is on-going;

1. Dualization of Ikole Township Road is on-going;
2. Dualization of Emure Township Road is on-going;
3. Dualization of Ise Township Road is on-going;

• Patching of Iropora-Ara Road;
• Patching of Epe-Ijero Road;
• Patching of Awo-Ijero Road;

1. Construction of New Governor’s Office within the Government House premises is on-going;

• Construction of New High Court Complex is on-going;
• Ilupeju-Ire Road is on-going;
• Iluomoba-Igbemo is on-going;
• Dualization of Mugbagba-Odo Ado Road is on-going;

1. Rehabilitation of Government House internal Road is on-going; and

• 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.
17. Ekiti State came first in NECO Examination in the 2016 fiscal year;
18. Education summit had been successfully held to design road map for advancement of education sector in the state;

• The State Government has maintained a very good partnership relationship with the World Bank on funding the State Education Programme Investment Project (SEPIP);

1. 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
2. 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:

1. Conduct of Agricultural Summit to chart a course for the development of the sector
2. Government during the period under consideration purchased clip seals for grading of farm produce;

• 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.

1. Establishment of Five (5) Hectares parenter Cocoa Garden; and
2. 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:
19. Provision of free “Oju Ayo” glasses for the people with eyes challenges across the State;
20. 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:
20. Distribution of food stuff and other materials to the vulnerable groups under Stomach Infrastructure Scheme;
21. Payment of N20,000 each to 500 Tailors in the 16 Local Government Areas;

• Payment of N50,000 each to 200 Artisans in the 16 Local Government Areas;

1. Payment of N5,000 each to 5000 beneficiaries across the 16 Local Government Areas; and
2. 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:
22. Completion of all critical on-going capital projects that are central to the Six (6) Cardinal Programmes of the Government;
23. To improve on the level of Internally Generated Revenue and monitor same for the purpose of blocking all leakages of Government revenue;

• A proper monitoring of income and expenditure of Government for transparency;

1. To curtail extra-budgetary spending;
2. Improvement in the quality of Education;
3. To provide qualitative health services;

• Sustenance of good governance through Budget discipline, probity and accountability in the utilization of Public funds;
• Improving on the socio-economic policy environment which is the bench mark of the Government Six (6) Cardinal Programmes;

1. 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
2. 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:

• Personnel Cost –        N16,566,429,583.84

 

• Other Charges –            2,587,000,158.79

 

• Recurrent Grants to Tertiary

Institutions                         –            8,965,659,199,02

 

• Transfer to other Funds –            9,224,366,722.28

 

• 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.