Ekiti State 2016 Budget Speech Delivered by the Executive Governor of Ekiti State

2016 BUDGET SPEECH DELIVERED BY THE GOVERNOR, MR. PETER AYODELE FAYOSE ON Tuesday 8
TH
December, 2015.
2016 BUDGET SPEECH DELIVERED BY THE EXECUTIVE GOVERNOR
OF EKITI STATE, MR. PETER AYODELE FAYOSE AT THE STATE
HOUSE OF ASSEMBLY COMPLEX, ON TUESDAY 8
TH
DECEMBER,
2015.
PROTOCOLS:
I am delighted to present the 2016 Budget to this Honourable House, and by
extension to the good people of Ekiti State and the world at large. We are all aware
that the Budget is not only a necessity for the right ordering of our income and
expenditure in the next twelve months, but also a constitutional duty to be carried out
by all concerned. While it is the duty of the Executive to draw up the proposals, the
buck stops at the table of this Honourable House to pass the Appropriation Law for
the three arms of Government to execute as appropriate.
2. It is worthy to note that, this is the first time I will be addressing this
Honourable House after your inauguration in June this Year. This occasion is also
unique as I am presenting the first Budget to be considered by your good selves as
Members of the House of Assembly of Ekiti State. Let me congratulate you once
more on your election and subsequent inauguration. I must state that my
Government had received and enjoyed absolute cooperation from this House since
you came on board. Your level of commitment to the Ekiti Project is high and is
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December, 2015.
commendable. I wish to express my appreciation and that of the good People of Ekiti
State for your support as demonstrated in the quick passage of executive bills and in
your oversight functions of the State Ministries, Departments and Agencies and
Local Government Council Areas. I Will enjoin you to continue in this manner as we
partner together to better the lot of our dear State.
REVIEW OF THE 2015 BUDGET:
3. About a year ago, on 15
th
December to be precise, I presented the maiden
budget of the Second Term of my Administration to your predecessors. That Budget
was prepared against the back drop of the realities we met on ground at inception. It
is no longer news that we inherited a huge debt of aolmost N70billion which had
mortgaged the state till about year 2020. With that and the dwindling resources, we
had no choice but to draw up what we thought was a realistic budget of N80.7billion.
This was passed into law by the House of Assembly on 30
th
December, 2015.
4. When I presented the 2015 Budget proposals before this Honourable House
of Assembly, I indicated some of the key challenges we met on taking over the
responsibility of providing focused leadership for our dear State. These challenges
have the potential to hinder optimal implementation of the Budget but we were
nonetheless determined as a Government to forge ahead in serving our people to
the best of our ability. It is therefore rational to review our performances in the last
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December, 2015.
one year against our historical context, whilst also reviewing where we are now and
where we intend to be in the future.
5. The performance of the 2015 Budget is however below expectation as we
could only muster about 70% as at end of the Third Quarter of the year. Several
factors account for this. Besides the nation-wide gloomy economic landscape, the
state witnessed political turbulence in the first half of the year, which could not but
impact negatively on our revenue performance. We are grateful to the Almighty God
for seeing us through that turbulent period of our Administration. I also wish to
appreciate the good people of Ekiti for standing by us through thick and thin. I am
constantly amazed at the commitment and love the Ekiti people continue to
demonstrate to me and this Administration. I always pray to God to give me great
grace never to betray the trust of Ekiti people.
6. This Administration inherited an intimidating debt burden in the sum of Sixty
Nine Billion, Five Hundred and Eighteen Thousand, Three Hundred and Twenty One
Naira and Seventy Four Kobo (N69, 518,365,231.74) with many uncompleted
and abandoned projects as well as heavy arrears of workers’ salaries, pensions and
gratuities. The details of the debt profile of the State are as contained in
table 1 below. Our State was committed financially up to and until year 2020, even
beyond my own Administration. This Administration had to undertake the
Restructuring of State Commercial Bank Loans to the tune of N18, 828,978,546.52K
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December, 2015.
to create more liquid fund for the State on monthly basis. In addition, promotions of
Civil Servants were in arrears, while car and housing loans had been completely
stopped. We have since restored hope to the Public Service through various reforms
and interventions (prompt payment of salaries, resuscitation of both car and housing
loans).
TABLE i: EKITI STATE DEBT PROFILE
S/N NATURE OF DEBTS AMOUNT IN NAIRA
i. Bonds Balance 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
7. This Administration inherited a system of stunted Internally-Generated
Revenue [IGR] of about N200, 000,000.00 monthly. It is worthy of note, that our
IGR has increased to minimum of N300, 000,000.00k per month as a result of
various measures introduced in our drive to increase the revenue of the State. We
are praying that the situation will improve next year in view of some new policy
initiatives on revenue generation. Our focus in the years ahead is to develop the
informal sector of the state economy with a view to widening the tax base and
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December, 2015.
aggressively tapping other tax potentials in the state without inflicting undue pains on
the citizenry.
REVIEW OF 2015 REVENUE:
8. My Speaker sir, the Budget for 2015 was christened “The Budget of Reality”.
When it was thus named, little did we know that the situation would only get worse.
We are all living witnesses to the downward trend in the nation’s economy
occasioned by the dwindling revenue and the low exchange rate of the Naira. The
situation calls for a re-awakening and rethinking as the state finances is tied to the
apron strings of the Federation Account. If that account is troubled, it will definitely
boomerang on the economy of the State. Hence, we have to start looking inwards to
better the lot of the State.
9. The table below reveals that the total Budget was Eighty Billion, Seven
Hundred and Eighty Four Million, Thirty Two Thousand, Eight Hundred and Sixty
Seven Naira and Thirty Seven Kobo (N80, 784,032,867.37K) for the year 2015
financial year. The total revenue as at 30
th
September, 2015 (the Third Quarter
Performance of the Budget), stood at Forty-Two Billion, Two Hundred and Eighty
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December, 2015.
One Million, Five Hundred and Sixty Nine Thousand, Two Hundred and Thirty Naira
and Nine Kobo (N 42, 281,569,230.09k) representing 70%, against the expected
sum of Sixty Billion, Five Hundred and Eighty Eight Million, Twenty Four Thousand,
Six Hundred and Fifty Naira and Forty Six Kobo. (N60, 588,024,650.46k).
TABLE ii: REVIEW OF 2015 REVENUE PERFORMANCE
S/N REVENUE
SOURCES APPROVED
ESTIMATES 2015
PROPORTIONAL
ESTIMATES JAN.-
SEPT. 2015
ACTUAL REVENUE
JAN.-SEPT. 2015
%
PERFOR.
1. Federal Allocation
30,948,303,542.35 23,211,227,656.76 19,392,207,439.46 84%
2. IGR
8,885,524,000.00 6,664,143,000.00 5,826,894,609.74 87%
3. VAT
7,660,360,510.48 5,745,270,382.86 5,580,464,121.53 97%
4. Draw-Down: External
(Grants/Loans)
8,819,953,944.55 6,614,965,458.41 572,508,783.02 9%
5. MDGs-Conditional
Grants Schemes (State
and LGAs 1,374,000,000.00 1,030,500,000.00 - 0%
6. Loan-Internal Loan Bond
5,000,000,000.00 3,750,000,000.00 - 0%
7. Grants from Federal
Government
(Reimbursement on
Federal Road Projects
handled by the State 1,000,000,000.00 750,000,000.00 - 0%
8. Ecological Fund
4,000,000,000.00 3,000,000,000.00 2,000,000,000.00 67%
9. Excess Crude Oil
Proceeds + Budget
Differential 1,219,214,254.73 914,410,691.05 85,679,741.15 9%
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December, 2015.
10. Sundry Income: [FAAC
Argumentation, Refund
from NNPC/NGC] 1,890,356,766.48 1,417,767,574.86 3,256,230,389.85 230%
11. Other: Sundry Incomes
(SURE- P)
2,562,874,321.55 1,922,155,741.16 0%
12. Other: Transfer from
Prior Fiscal Year
7,423,445,527.13 5,567,584,145.35 5,567,584,145.34 100%
13. Total
80,784,032,867.37 60,588,024,650.45 42,281,569,230.09 70%
REVIEW OF 2015 EXPENDITURE PERFORMANCE:
10. The review below is based on the first three quarters of the outgoing year. As
at the end of September, 2015 a sum of Twenty Seven Billion, One Hundred and
Eighty Seven Million, Two Hundred and Ninety Six Thousand, Four Hundred and
Seventy Naira and Seventy seven Kobo (27,187,296,470.77k) has been
expended on both the recurrent and capital expenditures. This is made up of a sum
of Twenty Three Billion, One Hundred and Seventy Seven Million, Seventy Six
Thousand, Nine Hundred Nine Seven Naira and Five kobo, (N23,
177,076,997.05k) expended on Recurrent Expenditure and Four Billion, Ten
Million, Two Hundred and Nineteen Thousand, Four Hundred and Seventy Three
Naira and Seventy Two kobo (N4,010,219,473.72k) spent on capital expenditure.
This represents 63%:17% recurrent capital ratio as shown in the table below.
TABLE iii: REVIEW OF 2015 EXPENDITURE PERFORMANCE
S/N RECURRENT 2015 APPROVED 2015 ACTUAL %
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December, 2015.
EXPENDITURE ESTIMATES N PROPORTIONAL
ESTIMATES N
EXPENDITURES
JAN – SEPT N
PERFOR
.
1. Personnel
Cost
8,613,473,668.45
6,460,105,251.34 4,875,288,099.78 75%
2.
Other Charges
2,413,100,994.41
1,809,825,745.80 934,239,180.95 52%
3. Grants to
Parastatals
20,810,226,980.63
15,607,670,235.48 12,761,938,617.66 82%
4. Transfer to
Other Funds
(Recurrent)
6,278,316,369.03 4,708,737,276.77 2,052,638,031.06 44%
5. Consolidated
Revenue Fund
Charges
10,702,083,110.34 8,026,562,332.76 2,552,973,157.60 32%
6. TOTAL
RECURRENT
EXPENDITURE
48,817,201,122.86 36,612,900,842.14 23,177,076,997.05 63%
TABLE iv: REVIEW OF 2015 CAPITAL EXPENDITURE PERFORMANCE
S/N CAPITAL
EXPENDITUR
E
2015
APPROVED
ESTIMATES N
2015
PROPORTIONA
L ESTIMATES N
ACTUAL
EXPENDITURE
S JAN – SEPT
N
%
PERFO
R.
1. Economic
Sector
10,918,144,770.1
6
8,188,608,577.62 612,911,650.64 7%
2.
Social Sector
5,156,619,201.77
3,867,464,401.33 42,928,441.30 1%
3. Environmental
Sector
4,597,700,000.00
3,448,275,000.00 1,349,679,882.19 39%
4.
Administrative
Sector
7,314,464,555.30
5,485,848,416.48 1,288,997,964.59 23%
5. TOF Capital 3,979,903,217.19 2,984,927,412.89 715,701,535.00 24%
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December, 2015.
6.
TOTAL
CAPITAL
EXPENDITUR
E
31,966,831,744.42
23,975,123,808.32 4,010,219,473.72 17%
OUR MAJOR ACHIEVEMENTS:
11. It is gratifying to elaborate on what we have been able to achieve in the last
one year, despite all odds. I am particularly grateful that we have not betrayed the
trust vested in us by the good people of Ekiti State. They are the champions of our
governance ethos. The cordial and productive interdependent relationship that have
existed between this Administration and the good people of Ekiti State have made it
possible for us to make giant strides in the implementation of our 6 –Cardinal
Programmes. These successes are detailed below;
GOOD GOVERNANCE:
12. In the area of good governance, our goal is to provide adequate security for
lives and properties in Ekiti State. This Administration has been pro-actively
collaborating with the Police and other Law enforcement Agencies as well as local
vigilante groups to protect lives and property in the State. Early this Year we
collaborated with some Financial Institutions to procure vehicles and gadgets for the
security Agencies operating in the State. We have put in place deliberate policies to
enhance participatory governance and accountability.
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December, 2015.
13. Our efforts in Accountable and Transparent governance have started to yield
fruits. Recently, the Civil Resource Development Documentation Centre (CIRDDOC)
rated Ekiti State as the most transparent state 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 Organisations (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. 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.
14. To further promote good governance, we have kept to our promise to replace
poverty with prosperity in the land as well as empowering our people through the
instrumentality of our Stomach Infrastructure Schemes. In the face of economic
recession, this Administration has remained resolute to the payment of Workers’
salaries as at when due. Up to date, this Administration has paid a whopping sum of
N9, 604,430,000.00K backlogs of outstanding salaries and emolument of Public
Servants in the State. Furthermore, this Administration has paid the sum of N1,
110,000,000.00K as State Counterpart Fund to various Development Partners
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December, 2015.
involved in various projects geared towards accelerated development of our dear
State. In addition, car and housing loans had been resuscitated. We have since
restored hope to the Public Service through various reforms and interventions.
15. In line with the core tenets of good governance, transparency and
accountability, this Administration continued to adopt the Medium Term Expenditure
Framework [MTEF] as part of the reforms in the annual budgetary process. The
MTEF is an annual, rolling three year-expenditure planning. It sets out the medium-
term expenditure priorities and hard budget constraints against which sector plans
can be developed and refined. The MTEF also contains outcome criteria for the
purpose of performance monitoring and evaluation. No doubt, since the adoption of
MTEF in 2012, our annual budgeting process has been revolutionized with very
obvious positive outcomes. The MTEF 2015 – 2017 which this honourable House
graciously approved formed the basis of the 2015 Budget estimates. The 2016
Budget Estimate that I am presenting here today is also an offshoot of MTEF 2016 –
2018.
INFRASTRUCTURAL DEVELOPMENT:
16. Our Infrastructural Development Objectives are centred on creating the much
needed conducive environment to improve the lives of citizens and attract
investment. Thus, for effective functioning of the socio-economic apparatus of the
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December, 2015.
State, this Government within the last one year and in the face of economic
depression, has a modest record of achievements in the following areas;
i. Construction of 40 lock - up Shops at the Bisi Egbeyemi Market, Ado Ekiti.
This Project has been completed, commissioned and allocated;
ii. Construction of Modern Elegberun Market, Ikere Ekiti. The Project has
been completed and commissioned;
iii. Dualization of Afao Ekiti Township Road and street light. The Project has
been completed and commissioned;
iv. Ikere Road dualization Project is On-going;
v. Awedele Road dualization is On-going;
vi. Renovation of Fayose Computer Market;
vii. Construction of Adunni Funmilayo Olayinka Women Development Center,
Ado Ekiti. The Project is presently at 90% completion stage ;
viii. Clearing and survey of site for the construction of Air Strip in Ado Ekiti;
ix. Commencement of the construction of New modern Oba’s Market in Ado
Ekiti;
x. This Administration is on the verge of rehabilitating all the existing dams, in
addition to the replacement of old damaged water pipes to ensure
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December, 2015.
improved water supply to all communities in the State. The World Bank,
UNICEF and EU are supporting us on these projects;
xi. This Administration is working Day and Night to ensure improvement in
electricity supply across the State. To this end, I held a meeting
between the State Government and the Management of Benin Electricity
Distribution Company (BEDC) led by her Managing Director. The
outcome of the meeting resulted into allocation of additional megawatts of
electricity to the State, while the processes of connection of the completed
transformer projects have reached an advanced stage;
xii. Construction of 330kv and 132kv transmission substation in Ado and Ifaki-
Ekiti. Following the effort of the State Government to improve electricity in
Ekiti State, the Transmission Company of Nigeria (TCN) has proposed
the construction of 330 and 132KV transmission station at Ado and
Ifaki-Ekiti. The lands for the projects including the approved cadastral
surveys of the two locations had been prepared and handed over to
Transmission Company of Nigeria (TCN) for further necessary action.
Further action is on-going on the enumeration, compensation and
preparation of the Certificate of Occupancy.
EDUCATION SCIENCE AND TECHNOLOGY:
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December, 2015.
17. In the same vein, we have invested heavily in the development of the
Education Sector to cure the glaring ailments in the system. We have started a
gradual process of restoring the lost glory of the State in that sector. In this
connection, our interventions include but not limited to the following;
i. We have successfully conducted 2015 Education Summit to chart the way for
advancement of our Education Sector in the State;
ii. Payment of N410M as State Counterpart Cash Contribution for the State
Education Programme Investment Project (SEPIP)The State Government of
the World Bank;
iii. The State Government is partnering with some industries and organizations in
the State and outside the State under DLI-IV of the State Education
Programme Investment Project (SEPIP), a World Bank intervention project to
train 372 Students in the 5 Government Technical Colleges. All second year
Students during 2014/2015 went for partnership;
iv. Payment of N70,070,000.00K as bursary to 7,007 Ekiti State Students in
Tertiary institution for 2012/2013;
v. Five (5) programmes were re-accredited at the Government Technical
College Ado – Ekiti and Igbara-Odo Ekiti, while Fifteen (15) programmes were
visited by resource persons;
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December, 2015.
vi. Construction of Samsung Engineering Academy building situated at the
Government Technical College Ado – Ekiti has been Completed and
commissioned;
vii. In the outgoing year, a sum of N328m was expended on the development of
our education sector - Registration of secondary schools and Technical
Colleges students for examinations at no cost to the students, renovation of
schools, provision of instructional materials, special intervention lessons for
SS 3 students and capacity building of science teachers. This is to enhance
the provision of affordable and qualitative education, with a better learning
outcome;
viii.The Government sponsored 11 State Officers including three (3) Principals in
the Ekiti State on a study tour to Sao Paulo and Manaus, Brazil on Khan
Academy Lite in October, 2015; and
ix. Appointment of Three Tutors General and one Headmaster General during
the last Teacher’s Day Celebration on 5
th
October, 2015.
DEVELOPMENT OF AGRICULTURE:
18. The development of Agriculture remains critical to our economy as it employs
about seventy-five percent [75%] of our population. Therefore, Agriculture is at the
core of our 6 – Cardinal Programmes. Outside of Federal Allocation, Agriculture is
the second largest source of revenue to the State. Hence, this Government has
ensured and encouraged increased Agricultural production towards food security for
local consumption and also for export. This Administration has been up and doing
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December, 2015.
despite paucity of fund to provide friendly environment in the Agriculture sector
hence, the influx of Investors which led to the allocation of more than 2,000Ha of
farm Land for farming. In 2015, a total sum of N7, 885, 500.00 was realised as
revenue generated from Land allocation to Agricultural Investors. This is the highest
in recent times. Under the Peasant Farmers Development Programme, the
Government collaborated with the Bank of Industry for a soft Loan of N600m out of
which N100m has been accessed and disbursed to 619 Farmers and 24 Co-
operative Societies.
19. The following are our other achievements in the sector within the last one year
in office;
i. Agro-chemical was distributed to 16 farmers for Rice Production on 40
hectares of Land at Ikoro and Aisegba;
ii. Cocoa agro-chemical worth N10m was distributed to Cocoa farmers as well
as 13,693 hybrid pods to 13 farmers and two farmers groups in the State;
iii. One Toyota Hilux Vehicle was donated to cocoa farmers in the State as our
support to anti smuggling operation in the State;
iv. The Ministry of Agriculture is presently raising 500,000 hybrid cocoa seedlings
for transplanting in the new year to increase cocoa production in the State;
v. The State Government sponsored two cocoa farmers to a workshop on cocoa
rehabilitation at Kumasi Ghana between 24
th
-28
th
August, 2015
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December, 2015.
vi. We have trained 2000 cocoa farmers on Good Agricultural Practices (GAP);
vii. This Administration has released fund to the Ministry of Agriculture to raise
18,000 oil palm seedlings which are expected to mature for planting by 2016;
viii. In our resolve to promote agro-processing, the State Government with support
from AFDB have constructed 3 cassava processing centers at Ado Ekiti, Odo-
Ayedun Ekiti and Iluomoba Ekiti;
ix. In collaboration with Nigeria Cassava Growers Association, the State
Government distributed 2,000 bags of fertilizer and 2,400 liters of herbicides
to farmers in the State;
x. The Government during the year under reference facilitated the propagation
of the new cassava hybrid for later distribution to Ekiti Farmers for disease
resistance and high yield;
xi. This Administration in collaboration with National Fadama Coordination Office
has released the sum of N20, 079,000.00 only for 20 Cassava Production
Groups to cultivate 200Ha of Land; and
xii. In our efforts to empower our youth through their engagement in Agriculture,
this Administration released over N3m to some youth to raise Broilers and
Layers in Ado Ekiti and Ikole kiti to mention but a few.
HEALTH CARE SERVICES:
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December, 2015.
20. One of the major thrusts of the 6 – Cardinal Programmes of this
Administration is to key into the concept of Universal Health Coverage through
effective and efficient functioning of all our Health Care Facilities across the state
and at all levels. To this end the following are the successes recorded in the last one
year;
i. We have been providing, in the last one year, free medical services for
children, pregnant women and the physically-challenged;
ii. We have also established health centres in all localities, while increasing
immunization coverage;
iii. We have greatly improved maternal healthcare, disease control, while also
making the regulation of private health institutions more effective;
iv. Under the Stomach Infrastructure Scheme of this Administration, several
Millions of Naira have been expended on the health care needs of indigent
patients for various operations and other auxiliary services by this
government.
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December, 2015.
EMPOWERMENT:
21. The Stomach Infrastructure Scheme of this Administration is designed to
empower every Ekiti Person to prosper in their endeavours. The Scheme has
intervened in the payment of hospital bills of indigent people across the State as well
as making food available on their table. Some of our achievements include the
following;
i. Disbursement of Fund to fifty Mothers of Multiple Babies;
ii. Mama Kits to all expected Mothers;
iii. Inauguration of Fourth Children’s Parliament;
iv. Regular release of monthly maintenance allowance of N1,398,000.00 to
Social Institutions: Children Correctional Centre, Ado-Ekiti, Social Intervention
Centre, Ado-Ekiti, Erelu Adebayo Children Home, Iyin-Ekiti and Rehabilitation
Centre, Ado-Ekiti;
v. Release of the sum of three hundred thousand naira (N300,000.00) only for
the training grant of three(3) blind trainees at the Nigeria Farm craft Centre for
Blind, Isheri, Lagos;
vi. Release of fund for the movement of 40units of wheelchairs and ten (10) units
of walking support wheels donated by the Japanese Government through the
Federal Government from Abuja;
vii. Appointment of a Person with Disability, in person of Mr. Rotimi Bejide as a
member of Christian Pilgrims Welfare Board;
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December, 2015.
viii.My persona donation ofl donation the sum of Five Hundred Thousand Naira
(N500, 000.00) only and one Motorcycle to a physically challenged Cobbler,
Mr Timothy Adelabu Ise-Oluwa, whose house and working tools were razed
by fire at Ikoro-Ekiti;
ix. Donation of food items to the residents of the Relief and Rehabilitation Centre,
Ado-Ekiti by Her Excellency, Mrs Feyisetan Fayose during her visits to the
Centre on two occasions; and
x. I have also approved the appointment of ten persons with disability into
various cadres of the Civil Service.
THE 2016 BUDGET:
22. The policy thrust of 2016 Budget is the implementation of projects and
programmes that will drive home the 6-Cardinal Programmes (EMPOWERMENT,
DEVELOPMENT OF AGRICULTURE, INFRASTRUCTURAL
DEVELOPMENT, EDUCATION, SCIENCE AND TECHNOLOGY,
HEALTH CARE SERVICES, AND GOOD GOVERNANCE.) of this
Administration. Hence, the contents of 2016 Budget are to realise our mission to
exterminate Poverty and hunger in Ekiti State.
23. Ladies and gentlemen, this has always been our mission has not changed.
The vision is clearer than before. We have had cause to reconsider and re-order our
priorities in the last one year in the face of economic recession. Let me state here
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December, 2015.
that our commitment to the mission remains unshaken. Our drive is with vigour and
our determination is stronger than before. We are rejuvenated to serve Ekiti better.
The policies, programmes, Projects and activities of the Budget are people centred.
OBJECTIVES OF THE 2016 BUDGET:
24. Based on the foregoing, the policy thrusts of the 2016 Budget include but not
limited to the following:
i. Diversification of the economy from Federation Account Allocation dependent
to the exploitation of our natural endowments and widening our tax base for
the socio-economic development of our dear State and exploitation of raw
material (Solid Minerals);
ii. No Pay cut and workers retrenchment;
iii. Prompt payment of workers salary and pensions to our retired senior citizens;
iv. Aggressive IGR drive;
v. Radical approach to reducing the level of poverty among the citizenry through
provision of conducive environment for job creation and stomach
infrastructure facilities;
vi. Completion of some strategic on-going Capital Projects
vii. Effective supervision and monitoring of all Government Capital Projects to
enable Government get value on fund expended on projects;
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December, 2015.
viii. Improvement in socio-economic infrastructure such as rural/urban roads,
rural/urban water supply and rural electrification;
ix. Improvement in the quality of Education through adequate funding of all tiers
of Education level
x. Promotion of economic activities through support and provision of loans for
Micro, Small and Medium Scale Enterprises (MSME);
xi. Putting in place appropriate policies that would enhance effective, efficient
and well motivated public service to enhance high productivity and promotion
of industrial peace and harmony in the State;
xii. Adherence to Due process through budget discipline and effective utilization
of public fund;
xiii. Increasing the effectiveness and functionality of all social services like
improving the quality of health care delivery, sound Education policy and ICT
driven economy; and
xiv. Development of Agriculture so as to ensure provision of enabling environment
for food security and the growth of agro-based industries with immense
private sector participation.
HIGHLIGHTS OF 2016 BUDGET:
25. 2016 REVENUE PROJECTIONS
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December, 2015.
Considering the limited resources at our disposal and in order to keep the economy
growing and restore the tempo of sustainable development, we have proposed a
Budget size of Sixty Seven Billion, Forty Four Million, Three Hundred and Ninety
Five Thousand, Five Hundred and Forty Seven Naira, Ninety One Kobo, (N67,
044,395,547,91k) for the 2016 financial year. This is 83% of the 2015 budget of
N80.78 billion. The size is informed by our desire to live within our means and go
with an achievable estimate rather than decorate the Budget with unrealistic figures.
26. As shown in table v below, 39% of the Budget would be funded by the
revenue from the Federal Allocation Accounts while the internally generated revenue
source is expected to fund 15% of the Budget. Furthermore, while VAT accounts for
9% and Capital Receipts from other sources is 37%.
TABLE v: 2016 REVENUE PROJECTION
S/
N
HEAD REVENUE SOURCES 2015 REVISED
ESTIMATES
PROJECTION FOR
2016
%
DIST.
A 1.
1
Federal Allocation 30,948,303,542.35 26,456,276,585.94 39%
2.
2
IGR 9,465,427,095.47 9,865,566,893.32 15%
3.
3
VAT 6,660,360,510.48 5,850,000,000.00 9%
TOTAL REVENUE 47,074,091,148.3
0
42,171,843,479.26 63%
B CAPITAL RECEIPTS
23

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December, 2015.
1. Transfer from Recurrent
Budget
62,747,810.46 0%
2. Draw-Down: External
(Grants/Loans)
4,819,953,944.55 6,430,911,548.85 10%
3. MDGs-Conditional Grants
Schemes (State and
LGAs 2,400,000,000.00 600,000,000.00 1%
4. Loan-Internal Loan Bond
10,000,000,000.00 10,000,000,000.00 15%
5.
Grants from Federal
Government
(Reinbursement on
Federal Road Projects
handled by the State 1,000,000,000.00 1,000,000,000.00 1%
6. Ecological Fund
4,000,000,000.00 1,400,000,000.00 2%
7. Excess Crude Oil
Proceeds + Budget
Differential 1,219,214,254.73 600,000,000.00 1%
8. Sundary Income: [FAAC
Augumentation, Refund
from NNPC/NGC] 1,890,356,766.48 2,341,640,519.80 3%
9. Other: Sundary Incomes
(SURE- P)
1,536,874,321.55 - 0%
10. Other: Transfer from Prior
Fiscal Year
6,843,542,431.76 2,500,000,000.00 4%
TOTAL CAPITAL
RECEIPTS
33,709,941,719.0
7 24,935,299,879.11 37%
TOTAL BUDGET 80,784,032,867.3
7 67,044,395,547.91
RECURRENT EXPENDITURE:
24

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December, 2015.
27. A sum of Forty Two Billion, One Hundred and Nine Million, Ninety Five
Thousand, Six Hundred and Sixty Eight Naira, Seventy Nine Kobo. (N42,
109,095,668.79k) is earmarked for the recurrent expenditure of Government in
the 2016 fiscal year. This represents approximately 63% percent of the total Budget.
The Recurrent Capital Ratio of 63% to 37% would be achieved in the next fiscal
year. With this, Government expects to meet the following obligations as contained
in the table iv below:
TABLE vi: 2016 RECURRENT EXPENDITURE PROJECTION
S/N HEA
D
RECURRENT
EXPENDITURE
2015 REVISED
ESTIMATES
PROJECTION FOR
2016
%
DIST.
A 1. Personnel Cost 8,613,473,668.45 7,932,750,351.25 12%
2. Other Charges 2,520,750,887.17 2,033,639,357.24 3%
3. Grants to Parastatals 20,760,654,994.53 16,909,747,905.95 25%
4.
Transfer to Other
Funds (Recurrent) 7,401,918,043.61 2,970,892,685.85 4%
5.
Consolidated
Revenue Fund
Charges 11,402,083,110.34 12,262,065,368.51 18%
TOTAL
RECURRENT
EXPENDITURE
50,698,880,704.1
0 42,109,095,668.79 63%
HIGHLIGHTS OF SOME KEY RECURRENT EXPENDITURE:
SALARIES AND SUBVENTIONS:
25

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December, 2015.
28. In projecting for 2016, we applied the principle of cutting our coat according to
available material rather than our size. We have placed priority on workers’ salary
and welfare. Let me use this medium again to dissociate Ekiti State from any plan by
the Nigeria Governors” Forum or anybody else to cut the Minimum Wage and/or
reduce work force. Ekiti will never be part of any policy that will take food away from
the tables of our people. We promised to take care of their welfare and with God on
our side, this we will do. We shall also continue to fund our parastatals and tertiary
institutions within the limits of our resources. We are not only concerned with our
workers alone but also the generality of Ekiti people. To this end, we have packaged
certain welfare programs in the 2016 budget to reach out to widows, artisans and the
less privileged. I have just directed the appropriate agency to set the machinery in
motion to execute the payment of N5,000.00 per month to 10,000 indigent citizens
across the State in 2016. This is in addition to spontaneous Stomach Infrastructure
programs to be carried out as occasion demands.
29. As already stated, this Government will continue to accord priority to the
regular and prompt payment of salaries of workers. To this end, a sum of Seven
Billion, Nine Hundred and thirty Two Million, Seven Hundred and Fifty Thousand,
Three Hundred and Fifty One Naira, Twenty Five Kobo (N7, 932,750,351.25k) is
earmarked for salaries of Civil servants. Our Retirees shall receive priority attention
in the New Year as we have earmarked a sum of Twelve Billion, Two Hundred and
Sixty Two Million, Sixty-Five Thousand, Three Hundred and Sixty Eight Naira and
26

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December, 2015.
Fifty One Kobo (N12, 262,065,368.51K) for them; we are also committed to the
sustenance of our Parastatals and tertiary Institutions for accelerated growth and
development. To this end, allocations to key parastatals are as listed in table V
below;
TABLE vii ALLOCATION TO KEY PARASTATALS
S/N RECEIVERS SUBVENTION AMOUNT
(N)
1 Judiciary 1,074,363,162.98
2 College of Education 1,775,932,138.67
3 Ekiti State University 2,673,333,333.33
4 Teaching Service Commission 7,329,799,272.28
5 BSES 162,540,385.49
6 SUBEB 150,000,000.00
7 Agric Development Project 182,047,478.68
8 Water Corporation 260,918,962.24
9 University Teaching Hospital 2,309,817,550.56
10 Internal Revenue Service 239,503,817,.95
CAPITAL EXPENDITURE:
30. Mr. Speaker and distinguished Members, the Capital projects have been
selected to put Ekiti State on a road to rapid transformation. The three Millennium
projects that I have constantly drummed into public hearing take the pride of place.
They are:
• The Air port project
27

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December, 2015.
• The Oja-Oba Ultra-modern Market
• The Flyover Bridge.
These projects are designed to open up Ekiti State to the entire world and present
ours as an emerging land of opportunities. The other infrastructure projects are
scattered across the length and breadth of Ekiti. We have admitted into the Budget,
projects we believe are strategic and which we have the capacity to execute rather
than decorate the document with bogus and unrealistic agenda we know will not be
achievable. We would rather promise little and deliver much rather than vice versa.
We shall however do our best to ensure implementation to the best our resources
can handle.
31. A total sum of Twenty Four Billion, Nine Hundred and Thirty Five Million, Two
Hundred and Ninety nine Thousand, Eight Hundred and Seventy Nine Naira and
Eleven Kobo (N24, 935,299,879.11K) has been earmarked for the capital
expenditure of the Government in the 2016 fiscal year. This represents
approximately 37% percent of the total budget. The fund is distributed across
sectors as shown in table vi below:
TABLE viii: CAPITAL EXPENDITURE PROJECTION
S/N CAPITAL
EXPENDITURE
2015 APPROVED
ESTIMATES N
2016 Proposed
Estimates
%
PERFOR.
28

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December, 2015.
1. Economic Sector 10,918,144,770.16 14,170,889,199.00
57%
2.
Social Sector
5,156,619,201.77 1,484,837,144.79
6%
3. Environmental
Sector
4,597,700,000.00 1,072,763,666.18
4%
4.
Administrative
Sector
7,314,464,555.30 3,927,478,403.13
16%
5. TOF Capital 3,979,903,217.19 4,279,331,466.01
17%
6. TOTAL CAPITAL
EXPENDITURE
31,966,831,744.42 24,935,299,879.11 100%
HIGHLIGHTS OF KEY CAPITAL EXPENDITURE IN LINE WITH 6
CARDINAL PROGRAMMES:
EMPOWERMENT:
32. This Government shall promote egalitarian society for all Ekiti people at home
and in the Diaspora. It shall rekindle hope and restore the self-confidence that we
are known for. Every Ekiti Indigene 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.
33. Government shall create an enabling environment and provide basic facilities
for various professions, businesses, vocations, skill acquisition and other forms of
human enterprise. We shall promote equal opportunities for women and support the
29

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December, 2015.
physically challenged to demonstrate that there is ability in disability. The
Government plans to spend Seventy Five Million and Five Hundred Thousand Naira
Only (N75, 500,000.00) and One Hundred Million Naira Only (N100,
000,000.00k) on this sector for the year 2016 fiscal year. The distribution is as
contained in table vii below;
TABLE ix CAPITAL EXPENDITURE TO EMPOWERMENT SECTOR
S/N DISTRIBUTION AMOUNT (N)
1 Ministry of Women Affairs, Gender Empowerment
&Social Welfare
75, 500,000.00
2 Ekiti State Stomach Infrastructure Scheme 100,000,000.00
TOTAL 175, 500,000.00
DEVELOPMENT OF AGRICULTURE:
34. The main stay of our economy, outside of Federal Allocation is agriculture;
hence, this government shall ensure and encourage increased 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 projects as a catalyst to employment generation through
the encouragement of micro/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 Three
30

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December, 2015.
Hundred and Forty-three Million, Six Hundred and Thirty-Nine Thousand, One
Hundred and Ninety-Nine Naira Only (N343,639,199.00) has been allocated to
key projects in Agricultural sector.
INFRASTRUCTURAL DEVELOPMENT:
35. This Government places high premium on infrastructural development in view
of its importance on the effective functioning of the socio-economic apparatus of the
State. We are committed to the provision of good and durable intra and inter-
township roads. Local Government Councils shall also be encouraged to construct
access roads to communities and farmsteads. We shall continue to 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 road construction and 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 Thirteen Billion, Eight Hundred and Sixty-Three
Million, Five Hundred Thousand Naira Only (N13, 863,500,000.00) has been
allocated to infrastructure development of the state in the next fiscal year, as shown
in table ix below:
31

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December, 2015.
TABLE x: CAPITAL EXPENDITURE TO INFRASTRUCTURAL SECTOR
1 Public Works Project 13, 242,000,000.00
2 Water Corporation 501,000,000.00
3 Electricity 120,500,000.00
TOTAL 13,863,500,000.00
EDUCATION, SCIENCE AND TECHNOLOGY:
36. Our commitment to the restoration of our past glory in education informed the
restoration of the State acronym of ‘Fountain of Knowledge’ in our logo. This is a
demonstration of our aim of revamping the Education Sector to what it used to be.
To ensure this, conducive working environment shall be provided for Teachers
through the provision of appropriate working tools, training and other benefits. We
shall ensure adequate funding for all levels of education including our 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
continued. To actualise this, the sum of One Billon, Two Hundred and Thirty-Three
Million, Two Hundred and Sixty-Two Thousand, Eight Hundred and Sixty-One Naira
and Two Kobo. (N1, 233,262,861.02k) has been earmarked for the sector in the
following order as shown in the table x below:
TABLE xi: CAPITAL EXPENDITURE PROJECTION TO EDUCATION SECTOR
32

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December, 2015.
1 Main Ministry of Education 411,253,035.01
2 SUBEB 51,250,000.00
3 Board for Technical & Vocational Education 51,250,000.00
4 Ekiti State University 123,500,000.00
5 College of Education 86,000,000.00
6 Agency for Adult and Non Formal Education 24,250,000.00
7 Teaching Service Commission 22,000,000.00
8 Ekiti State Library Board 16,500,000.00
10 School Agriculture and Enterprises 10,250,000.00
11 TOF Capital Education 437,009,826.01
TOTAL 1,233,262,861.02
HEALTH CARE SERVICES:
37. It is a worldwide saying that Health is Wealth. It is also a statement of fact
that, the wealth of a State is in the state of her peoples’ health. Based on this, this
government shall continue to invest in the Health Sector and put in place deliberate
policies and programmes that will make every Ekiti Man and Woman have access to
health care services in the State. This administration shall put more efforts on the
provision of 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
33

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December, 2015.
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 at affordable prices.
38. The Government has allocated the sum of Five Hundred and Eighteen Million,
Nine Hundred and Five Hundred and Eighty-Four Thousand, One Hundred and Nine
Naira and Seventy Eight Kobo Only (N518, 584,109.78). The distribution is as
shown in table xi below.
TABLE xii: CAPITAL EXPENDITURE PROJECTION TO HEALTH SECTOR
1 Main Ministry of Health 193,304,140.82
2 College of Health Tech. Ijero – Ekiti 50,000,000.00
4 Primary Health Care Development Agency 45,010,000.00
5 Central Medical Store 10,965,236.60
6 Hospital Management Board 109,652,366.18
7 University Teaching Hospital 109,652,366.18
TOTAL 518,584,109.78
GOVERNANCE, PUBLIC SERVICE AND SECURITY:
39. The security of lives and property remains key in our 6- Cardinal Programme
as no meaningful development can take place in an atmosphere of insecurity, where
34

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December, 2015.
people sleep with one eye open. It is in realization of this fact, that our Government
continues to take measures whose goal is the security of lives and property in Ekiti
State. This administration shall pro-actively collaborate with the Police and other Law
enforcement Agencies and support local vigilante groups to protect lives and
property in the State.
40. The place of transparent, accountable, honest, and participatory leadership
which are the tenets and fulcrum upon which democracy rotates cannot be over
emphasised and we are committed to these in our dealings in Governance. We
understand the critical role of the Public Service as the engine room of Government.
In the last one year, we have taken critical steps aimed at restructuring the Public
Service in order to restore the core values of professionalism, honesty, integrity,
accountability and probity. The ugly trend of politicization of the service has been
halted. Our goal is a fully professional, depoliticized and highly motivated Public
Service that is committed to serving the interests of the public. Priority attention and
resources shall be accorded to training and re-training of officers to attune them with
best practices in governance and service delivery. The sum of Three Billion, Nine
Hundred and Twenty Seven Million, Four Hundred and Seven Eight Thousand, Four
Hundred and Three Naira and Thirteen Kobo Only (N3, 927,478,403.13k) has
been budgeted for security, governance and public service in the 2016 Fiscal Year
CONCLUSION:
35

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December, 2015.
41. Ladies and Gentlemen, I have just presented to you in the Budget address,
the policies and programmes of the Government put together to achieve the
collective aspirations of the good people of Ekiti State, Nigeria in the year 2016. You
are all witnesses to the fact that I always keep my word. I have not changed.
Therefore I can assure you of our resolve to faithfully implement the provisions as
passed by this Assembly. I am happy to note that members of the Honourable
House were involved in virtually all stages of the Budget process culminating in
today’s presentation. Let me appreciate the Chairman and members of the Finance
and Appropriation Committee for joining hands with the Budget Ministry during the
preparation stages. This is a demonstration of the Transparency and Openness in
the Budget system for which the State was recently adjudged the best in the entire
Federation. With your involvement so far, I have no doubt that the Budget shall have
smooth and speedy passage.
42. To my people of Ekiti State, let me assure you once again that I am fully
dedicated to your service. This Budget is your Budget. It is a Budget of the
people by the people and for the people. It is aimed at Purposeful and
strategic transformation of our dear State. We shall execute it together, and by
the grace of God, we shall take Ekiti to greater heights. I therefore implore all and
sundry to join hands with my Government by fulfilling your civic responsibilities to the
state. When you pay your taxes and fees, we shall have resources to meet our
collective yearnings.
36

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December, 2015.
43. Finally, I wish the Honorable House fruitful deliberation as they consider the
Budget Proposals for appropriation. I wish you all a Merry Christmas and a Happy
New Year in advance. Thank you and God bless.
44. Thank you and God bless.
37

Ekiti State 2016 Budget Speech Delivered by the Executive Governor of Ekiti State

Ekiti State 2016 Budget Speech Delivered by the Executive Governor of Ekiti State

Ekiti State 2016 Budget Speech Delivered by the Executive Governor of Ekiti State

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Ekiti State 2016 Budget Speech Delivered by the Executive Governor of Ekiti State