2015 Budget Speech Delivered by the Executive Governor of Ekiti State

2015 BUDGET SPEECH DELIVERED BY THE GOVERNOR, MR. PETER AYODELE FAYOSE ON MONDAY 15TH OCTOBER, 2014.

2015 BUDGET SPEECH DELIVERED BY THE EXECUTIVE GOVERNOR OF EKITI STATE, MR. PETER AYODELE FAYOSE AT THE STATE HOUSE OF ASSEMBLY COMPLEX, ON MONDAY 15TH OCTOBER, 2014. PROTOCOLS I am highly delighted to stand before this Honourable House to present the maiden budget speech of my second term in office as the Executive Governors of Ekiti State. As I stated during my inauguration and swearing in on October 16th, 2014 that “Essentially, this government is a government of

restoration. We shall continue with the people-oriented programmes which we started in 2003”. It is therefore noteworthy that we have consulted widely in ensuring the input of all Stakeholders in arriving at a budget that reflects our collective aspiration for sustainable development across all sectors of the economy. The Budget 2015 which I have tagged “Budget of Restoration” has been prepared with strategic underpinning of the six (6) Cardinal Programmes of this administration as follows:

- Empowerment - Development of Agriculture - Infrastructural Development - Education, Science and Technology - Health and - Good Governance

As you are aware, the Annual Budget has proved to be the most effective and efficient tool for the formulation, implementation and execution of government’s plans and programmes. It is also a veritable means by which resources that will be available to Government within a Fiscal Year are estimated and allocated to socially and economically productive sectors of the economy. A well planned budget is an instrument of economic policy, accountability and resources management. It is not only a control mechanism, but


a guide for human and materials management. It ensures a fiscal discipline and also curtails unnecessary expenditures. As a tool for economic planning, policy, and fiscal control, the year 2015 Budget has been prepared in conformity with the tenets of Public Financial Management (PFM). It is crafted as an offshoot of the Medium Term Expenditure Framework (2015-2017) which was passed by this Hounourable House of Assembly on Monday 8th December, 2014. The role of this distinguish House therefore is to examine the draft Budget and in the process, further articulate the needs of the electorate and appropriate public funds for the realization of the collective objectives of Government. This crucial function is strategic

and cannot be wished away. Every careful step has therefore been taken to ensure all provisions of the law are strictly adhered to in the preparation of the 2015 Budget. REVIEW OF THE 2014 BUDGET Rt. Honourable Speaker, House members, distinguished ladies and Gentlemen, it is expedient that I review the performance of 2014 Budget which this administration inherited from the immediate past administration. However, before I go into details of the Budget performance, I will like to emphasize on the position of the State finances as at when I took over in October 16th 2014.

S/N Nature of Debts Amounts

i. Bonds 26,250,204,976.00 ii. External Debt 6,260,949,265.00

iii. Commercial Loans 15,645,352,788.12

iv. Capital (Contracts/MDAs) 7,736,635,543.13

v. Outstanding Salary 3,786,290,489.83 vi. Gratuity 7,220,098,505.28

vii. Pension Arrears 2,618,833,664.38

viii. Total 69,518,365,231.74


I wish to reiterate the fact that today our State has been committed financially up to and until year 2020, even beyond my own administration. To this end, the understanding and the support of Ekiti People is required.

Table 1: Review of 2014 revenue Performance

As depicted in the table above, the total Budget was One Hundred and Three Billion, Eight Hundred and Eighty Two Million, and Three Hundred Ninety Three Thousand and Four Hundred and Thirty Three Naira Only. (N 103,882,393,433.00) and the total revenue expected as at 31st October, 2014 was Eighty Six Billon Five Hundred and Eight Million, Six Hundred Sixty One Thousand, One Hundred and Ninety Four Hundred Naira and Seventeen Kobo Only (N 86,568,661,194.17k) out of which the sum of Sixty Seven Billion, Nine Hundred and Forty Nine Million, Eight Hundred and Fifty Seven Thousand, Two Hundred and Seventy Four Hundred Naira and Thirty Seven Kobo Only (N 67, 949,857,274.37) was realised representing 78% performance within the period under review.

Ministry / Department REVISED ESTIMATES

2014

Proportional Estimates ACTUALS JAN -

OCT 2014

% Performance

A

1 Fedaral Allocation 32,387,403,753.00 26,989,503,127.50 29,379,336,707.00 109%

2 Internally Generated Revenue (Including

Parastatals)

20,150,908,908.00 16,792,424,090.00 6,356,658,362.72 38%

3 VAT 7,237,006,026.00 6,030,838,355.00 6,237,486,200.46 103%

4 Draw - Down: External (Grants / Loans) 10,547,554,735.00 8,789,628,945.83 3,390,080,033.11 39%

5 MDGs Conditional Grants Schemes (State

and LGAs)

1,075,000,000.00 895,833,333.33 1,200,000,000.00 134%

6 Loan - Internal Loan Bond 6,300,000,000.00 5,250,000,000.00 14,682,613,000.00 280%

7 Grants from Federal Government

(Reinbursement on Federal Road Projects

handled by the State)

6,700,000,000.00 5,583,333,333.33 -

8 Ecological Fund 525,000,000.00 437,500,000.00 - 0%

9 Excess Crude Oil Proceeds + Budget

Differential

4,811,940,864.00 4,009,950,720.00 1,161,156,433.08 29%

10 Sundry Incomes: [FAAC Augumentation,

Refund from NNPC & Proceeds from Sales of

Fertilizer

3,849,931,152.00 3,208,275,960.00 1,790,815,968.08 56%

11 Others: Sundary Incomes [SURE-P] 2,727,995,964.00 2,273,329,970.00 1,875,855,284.96 83%

12 Others: Transfer from Prior Fiscal Year 7,569,652,031.00 6,308,043,359.17 1,875,855,284.96 30%

103,882,393,433.00 86,568,661,194.17 67,949,857,274.37 78%

S/N

REVENUE

Total Revenue:


Table 2: Review of 2014 Expenditure Performance

Distinguish Honourable Members, as at the end of October, 2014 a total sum of Sixty One billion, Nine Hundred and Fifty Six Million, Six Hundred and Thirteen Thousand and Three and Eighty Nine Naira, Thirty five Kobo Only (N 61,956,613,389.35) had been expended on both the recurrent and capital expenditures representing 70% performance. Forty Billion, One Hundred Thirty Eight Million, Eighty Seven Thousand, Four Hundred and Fifty Eight Only Ninety Four Kobo Only (N40, 138,087,458.94K) was spent on Recurrent Expenditure while Twenty One Billion, Eight Hundred and Eighteen Million, Five Hundred and Twenty Five Thousand, Nine Hundred and Eighty Naira, Forty and One Kobo Only (N21, 818,525,980.41) was spent on capital expenditure. THE 2015 BUDGET You may wish to recall that in my inauguration speech, I emphasized

that this administration would embark on projects that would

Ministry / Department REVISED ESTIMATES

2014

Proportional Estimates ACTUALS JAN -

OCT 2014

% Performance

B

1 Personnel Cost 9,433,946,102.00 7,861,621,751.67 7,538,467,372.76 96%

2 Other Charges 5,843,744,049.36 4,869,786,707.80 2,088,143,770.05 43%

3 Grants to Parastatals 19,688,263,791.08 16,375,509,384.23 13,432,204,092.92 82%

4 Transfer to Other Funds (Recurrent) 10,325,546,474.65 9,981,849,240.23 6,749,331,439.21 68%

5 Consolidated Revenue Fund Charges 9,603,631,414.61 10,503,026,178.84 10,329,940,784.00 98%

Total Recurrent Expenditure: 54,895,131,831.70 49,591,793,262.78 40,138,087,458.94 81%

C

1 Economic Sector 22,896,220,290.33 16,781,850,241.94 8,900,899,117.49 53%

2 Social Services Sector 8,617,495,257.52 7,181,246,047.93 8,113,341,485.42 113%

3 Environmental Sector 2,364,107,034.07 1,891,755,861.73 250,541,035.65 13%

4 Administrative Sector 11,178,457,035.20 9,157,464,696.00 3,418,580,960.52 37%

5 TOF Capital 3,930,981,984.18 3,605,835,618.53 1,135,163,331.33 31%

45,056,279,617.12 35,012,316,847.60 20,683,362,599.08 59%

Total TOF Capital: 3,930,981,984.18 3,605,835,618.53 1,135,163,331.33 31%

Grand Total: Capital Total + Tof

Capital:

48,987,261,601.30 38,618,152,466.13 21,818,525,930.41 56%

103,882,393,433.00 88,209,945,728.91 61,956,613,389.35 70%

CAPITAL EXPENDITURE

Total Capital Expenditure:

GRAND TOTAL:

RECURRENT EXPENDITURE

S/N


improve the lot of the entire citizenry of Ekiti State. This policy thrust shall be pursued and consolidated in the next fiscal year as the budget would be designed to improve on all on-going projects which are in-line with the 6 cardinal programmes of this administration. OBJECTIVES OF THE BUDGET Based on these foregoing, the policy thrust of the 2015 Budget include but are not limited to the following:

i. Aggressive IGR drive; ii. Radical approach to reducing the level of poverty of the

citizenry through provision of conducive environment for job creation and stomach infrastructural facilities

iii. Improving on all on-going Capital Projects; iv. Effective supervision and monitoring of all government Capital

Projects to enable Government get value on fund expended on projects;

v. Improvement in socio-economic infrastructure such as rural/urban roads, rural/urban water supply and rural electrification;

vi. Improvement in the quality of Education through adequate funding of all tiers of Education

vii. Promotion of economic activities through support for Small and Medium Scale Enterprises (SME);

viii. Putting in place appropriate policies that would enhance effective, efficient and well motivated public service to enhance productivity and promotion of industrial peace and harmony in the State;

ix. Prompt payment of workers salary; x. Adherence to Due process through budget discipline and

effective utilization of public fund;


xi. Increasing the effectiveness and functionality of all social services like improving the quality of health care delivery, sound Education policy and ICT driven economy;

xii. Development of Agriculture so as to ensure provision of enabling environment for food security and agro-based industries with immense private sector participation.

HIGHLIGHTS OF 2015 BUDGET In order to keep the economy growing and restore the tempo of sustainable development, we have proposed a Budget of Eighty Billion, Seven Hundred and Seventy Four Million, Thirty Four

Thousand Eight Hundred and Sixty Seven Naira and Twenty Eight Kobo Only. (N80, 774,034,867.28k) for the year 2015 Financial Year.

2015 REVENUE PROJECTIONS

Ministry / Department Proposed Estimates

2015 (N)

% Distribution

1 Fedaral Allocation 30,948,303,542.35 38%

2 Internally Generated Revenue (Including

Parastatals)

8,885,524,000.00 11%

3 VAT 7,660,360,510.48 9%

4 Draw - Down: External (Grants / Loans) 8,819,953,944.55 11%5 MDGs Conditional Grants Schemes (State

and LGAs)

1,374,000,000.00 2%

6 Loan - Internal Loan Bond 5,000,000,000.00 6%

7 Grants from Federal Government

(Reinbursement on Federal Road Projects

handled by the State)

1,000,000,000.00 1%

8 Ecological Fund 4,000,000,000.00 5%

9 Excess Crude Oil Proceeds + Budget

Differential

1,219,214,254.73 2%

10 Sundry Incomes: [FAAC Augumentation,

Refund from NNPC & Proceeds from Sales of

Fertilizer

1,880,356,766.48 2%

11 Others: Sundary Incomes [SURE-P] 2,562,874,321.55 3%

12 Others: Transfer from Prior Fiscal Year 7,423,445,527.13 9%

80,774,032,867.28 100%

S/N

REVENUE

Total Revenue:


RECURRENT EXPENDITURE A total sum of Forth Eight Billion, Seven Hundred and Seventeen Million, Two Hundred and One Thousand, One Hundred and Twenty Two Naira and Eighty Six Kobo Only (N48, 717,201,122.86) has been earmarked for the recurrent expenditure of government in the 2015 fiscal year. This represents approximately 60% percent of the total budget. With this Government expects to meet the following obligations listed in the table below:

The recurrent capital ratio of 60% to 40% would be achieved in the next fiscal year. Highlights of Some Key Recurrent Expenditure:

(a) SUBVENTIONS:

This Government will continue to accord priority to the sustenance of these key parastatals for accelerated growth and development. To this end, allocations to key parastatal are as listed below;

S/N Receivers Subvention Amount (N)

1 Judiciary 1,128,081,321.13 2 College of Education 2,426,000,000.00

3 Ekiti State University 3,281,345,005.89

4 Teaching Service Commission

8,713,846,999.82

5 BSES 262,500,000.00

1 Personnel Cost 8,613,473,668.45 11%

2 Other Charges 2,413,100,994.41 3%

3 Grants to Parastatals 20,860,226,980.63 26%

4 Transfer to Other Funds (Recurrent) 6,278,316,369.03 8%

5 Consolidated Revenue Fund Charges 10,552,083,110.34 13%

Total Recurrent Expenditure: 48,717,201,122.86 60%

RECURRENT EXPENDITURE


6 SUBEB 230,220,677,.78 7 Agric Development Project 210,000,000.00

8 Water Corporation 352,928,299.04

9 University Teaching Hospital 2,501,841,358.53

10 Internal Revenue Service 525,000,000.00 11 Scholarship Scheme 59,415,684.20

CAPITAL EXPENDITURE A total sum of Thirty Two Billion, Fifty Six Hundred Million, Eight Hundred and Thirty One Thousand, Seven Hundred and Forty four Hundred Naira and Forty Two Kobo Only (N32, 056,831,744.42) has been earmarked for the capital expenditure of government in the 2015 fiscal year. This represents approximately 40% percent of the total budget. The fund is distributed across sectors as follows as shown in the table below:

HIGHLIGHT OF KEY CAPITAL EXPENDITURE IN LINE WITH 6

CARDINAL PROGRAMMES

Empowerment

This Government shall promote egalitarian society for all Ekitis at

home and in the Diaspora. It shall rekindle hope and restore the self-

1 Economic Sector 11,461,144,770.16 14%

2 Social Services Sector 5,952,119,201.77 7%

3 Environmental Sector 4,948,000,000.00 6%

4 Administrative Sector 5,559,164,555.30 7%

5 TOF Capital 4,136,403,217.19 5%

27,920,428,527.23 35%

Total TOF Capital: 4,136,403,217.19 5%

Grand Total: Capital Total + Tof

Capital:

32,056,831,744.42 40%

CAPITAL EXPENDITURE

Total Capital Expenditure:


confidence that we are known for. Every Ekiti Person shall be

assisted to pursue and realize his or her aspiration in the area of core

ability or competence and encouraged to develop to the fullest

without any form of inhibition or limitation.

Government shall create an enabling environment and provide basic

facilities for various professions, business, vocation, skill acquisition

and other form of human enterprise. It shall promote equal

opportunity for women and support the physically challenged to

demonstrate that there is ability in disability. The Government plans

to spend Three Hundred and Eleven Million Naira Only (N311,

000,000.00k) on this sector for the year 2015 fiscal year. The

distribution is as contained in the table below;

S/N Distribution Amount (N)

1 Ministry of Women Affairs, Gender Empowerment &Social Welfare

291,000,000.00

1 Women Development Programmes

20,000,000.00

DEVELOPMENT OF AGRICULTURE.

The main stay of our economy, outside of Federal Allocation is

agriculture; hence, this government shall ensure and encourage

increase agricultural production towards food security for local

consumption and also for export. It shall enhance the production of


cash crops, particularly Cocoa and palm oil. It shall lay emphasis on

agro-based project as a catalyst to employment generation through

the encouragement of small/medium enterprise such as cassava

processing, rice milling, and poultry feed mills, fruit and juice

factories etc. Government shall also provide farm equipment,

storage facilities and soft loans. To this end, the total sum of One

Billion, Five Hundred and Ninety Million, Five and Ninety Six

Thousand Naira Only (N1, 590,596,000.00k) has been allocated to

key projects in Agricultural sector as listed below


1 Ministry of Agriculture & Rural Development

960,596,000.00

2 Forestry Dept 70,000,000.00 3 Agriculture Development

Project 170,000,000.00

4 Farm Settlement Scheme 60,000,000.00

5 Ekiti Marketing Board 10,000,000.00

6 Rural Development 250,000,000.00 7 FADAMA 70,000,000.00

INFRASTRUCTURAL DEVELOPMENT

The importance of infrastructural development cannot be over emphasized. Thus, for effective functioning of the socio-economic apparatus of the State, this Government shall ensure the provision of good and durable intra and inter-township roads. It shall also encourage Local Government Council to construct access roads to communities and farmsteads. The State Government shall collaborate with the Federal Government towards the realization of Federal Projects including the Federal Government Secretariat, the Airport project, the extension of Rail line and also on road


maintenance. We shall ensure the rehabilitation of existing dams, in addition to the replacement of old and damaged water pipes to ensure improved water supply to all communities. Provision of enabling environment and partnership with private investors for affordable housing schemes shall be vigorously pursued. The sum of Eleven Billion, Four Hundred and Thirty Two Million, Two Hundred and Twenty Five Thousand, Seven Hundred and Seventy Naira and Sixteen Kobo Only. (N11, 432,225,770.16k) has been allocated to infrastructure development of the state in the next fiscal year, as shown in the table below:


1 Public Works Project 9,522,225,770.16

2 Water Corporation 1,600,000,000.00 3 Electricity 310,000,000.00

EDUCATION, SCIENCE AND TECHNOLOGY.

The State is known for her prowess in education advancement, this

administration will pursue a deliberate policies and programmes

towards restoration of her past glory in education. To this end, the

PDP led Government in Ekiti State will offer free and compulsory

quality and qualitative education up to senior secondary school level.

Teachers shall be accorded their right of place as critical stakeholders

in education development of our State. Conducive working

environment shall be provided for them through provision of

appropriate working tools, training and other benefits. We shall

ensure adequate funding for all levels of education including the

University and all other tertiary institutions in the State. Our

technical Colleges shall be strengthened for skill acquisition. Bursary


award and scholarship Schemes shall be restored. So therefore the

sum of Two Billion, One Hundred and Twenty Four Million, Five

Hundred and Ninety Eight Thousand, Five Hundred and Fifty Two

Naira and Thirty Eight Kobo Only. (N2, 124,598,552.38) has been

earmarked for the sector in the following order


1 Main Ministry of Education 273,598,552.38

2 SUBEB 170,000,000.00

3 Board for Technical & Vocational Education

236,000,000.00

4 Ekiti State University/ College of Medicine

500,000,000.00

5 College of Education 190,000,000.00

6 ANFE 68,700,000.00 7 Teaching Service

Commission 66,000,000.00

8 Ekiti State Library Board 505,800,000.00

9 Ekiti State Quality Assurance Agency

100,000,000.00

HEALTH

They say health is wealth. You will also agree with me that the

wealth of a State is in the state of her peoples’ health. Base on this,

this government shall buy into the concept of Universal Health

Coverage (UHC) and pursue deliberate policies and programmes that

will make every Ekiti Man and Woman have access to health care

services in the State.


This administration shall provide Free Health Care Services for

children aged 0-5, pregnant women and the physically challenged.

We shall provide functional equipment and adequate personnel at all

levels of health care facilities in the State in addition to rehabilitation

of facilities in our hospitals and health centres. The University

Teaching Hospital shall be adequately funded and staffed

appropriately to offer quality and qualitative tertiary health care

services to our people, also at affordable prices. The Government has

allocated the sum of Two Billion, Seven Hundred and Thirty One

Million, Five Hundred and Two Thousand, Six Hundred and forty Nine

Naira and Thirty Nine Kobo Only.(N 2, 731,520, 649.39k), the

distribution is as contained in the table below;


1 Main Ministry of Health 1,517,520,649.39

2 College of Health Tech. Ijero – Ekiti

145,000,000.00

3 University Teaching Hospital 550,000,000.00 4 Primary Health Care

Development Agency 284,000,000.00

5 Central Medical Store 80,000,000.00

6 Hospital Management Board 155,000,000.00

SECURITY

No meaningful development can take place in an atmosphere of

insecurity, where people sleep with one eye closed. It is in realization

of this fact, that our government shall provide adequate security for

lives and property in Ekiti State. This administration shall pro-actively


collaborate with Police and other Law enforcement Agencies and

support local vigilante groups to protect lives and property in the

State. Our Government shall also ensure the take-off of military

formation in Ekiti State.

GOVERNANCE AND PUBLIC SERVICE.

This administration appreciates transparent, accountable, honest,

and participatory leadership which are the tenet and fulcrum upon

which democracy rotates, that is our standing and promise to the

good people of Ekiti State.

We understand the critical role of the Public Service as the engine

room of Government. We shall therefore take appropriate steps

toward the restoration of the core values of professionalism,

honesty, integrity, accountability and probity. The ugly trend of

politicization of the service shall be halted.

The Civil Service shall be re-positioned to serve the interest of the

public and re-directed as a key player in socio-economic

transformation of our state through objectivity and dutiful

implementation of Government development programmes. Priority

attention and resources shall be accorded the training and re-

training of officers to attune them with best practices in governance

and service delivery. The sum of Five Billion, Three Hundred and Sixty

Six Million, Five Hundred and Sixty Four Thousand, Five Hundred and


Fifty Five Naira and Thirty Seven Kobo Only N 5, 366,564,555.37k has

been budget for security, governance and public service for the fiscal

year under reference.

CONCLUSION

Right Honourable Speaker and the Honourable members of this

distinguished house, this budget is a document that has articulated

the policies and programmes of the government to achieve the

collective aspirations of the good people of Ekiti State, Nigeria in the

year 2015. It is our resolve to faithfully implement the provisions as

passed by this Assembly.

It is now a singular honour for me to formally present to you the

proposed 2015 Budget, the “BUDGET OF RESTORATION”. I pray that

the implementation of this budget will bring the desired growth and

development to our people and Ekiti State, Nigeria,

Thank you.

Wishing you a Merry Christmas and prosperous Happy New Year in

Advance.

MR. PETER AYODELE FAYOSE,

EXECUTIVE GOVERNOR,

EKITI STATE, NIGERIA


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2015 Budget Speech Delivered by the Executive Governor of Ekiti State