Ladies and Gentlemen, I am delighted to be with you in this hallowed chamber on this special occasion of the presentation of the 2021 Budget proposal christened, “Budget of Recovery and Economic Restoration” to the Ekiti State House of Assembly.

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Text of the
2021 BUDGET SPEECH
Presented to the
Ekiti State House of Assembly
By
Dr. Kayode Fayemi, CON
Governor, Ekiti State, Nigeria
Ekiti State House of Assembly, Ado-Ekiti, Ekiti State
Tuesday, October 27, 2020
Protocols
1. Ladies and Gentlemen, I am delighted to be with you in this
hallowed chamber on this special occasion of the presentation of the
2021 Budget proposal christened, “Budget of Recovery and
Economic Restoration” to the Ekiti State House of Assembly.
2. I consider it a great privilege, to stand before the distinguished
members of the Ekiti State House of Assembly, again, to lay the 2021
Budget proposal in fulfilment of my constitutional obligation as the
Governor under Section 121 (1) of the 1999 Constitution of the
Federal Republic of Nigeria (As amended, 2011).
3. First, I appreciate God Almighty, the giver of life, for another
opportunity to perform this Constitutional duty. I wish to register my
profound gratitude to this Honourable House for the privilege to lay

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before the House of Assembly, the 2021 Fiscal Estimates. This is the
third in my second term in office as the Governor of Ekiti State.
4. The Budget proposal being presented today is a product of public
consultation through town hall meetings held across the three
Senatorial districts on Monday, October 12, 2020.
5. Mr Speaker, permit me to acknowledge with profound gratitude,
the symbiotic productive partnership between the Legislative and the
Executive Arms of Government in Ekiti State, which has been
cordially wonderful.
6. I also thank the good people of Ekiti State for the trust and
confidence reposed in me to steer the ship of our dear State even at
this perilous time. I appreciate your perseverance and continued
support at all times. As a government, we remain unwavering in our
commitment towards actualising our vision to improve Ekiti State
and its people.
7. Distinguished Honourable members, it is expedient to commend
your efforts for the approval given to the revised 2020 – 2022
Medium Term Expenditure Framework (MTEF) and Fiscal Strategy
Paper (FSP) and subsequently, the 2020 Revised Appropriation Bill in
response to the outbreak of the novel Coronavirus. Your rare
demonstration of patriotism in attending to the Fiscal Documents to
promptly curtail the spread of the pandemic is highly commendable.

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8. Mr Speaker, it is not by happenstance that the present
Administration places high premium on transparency, accountability,
openness and probity in the management of little available resources.
As a government, we are determined to strengthen good governance
through fiscal responsibility. This is evident in the consistency of our
fiscal policies with global best practices. The proposed 2021 Budget
summarily defines the policy thrust and direction of governance in
Ekiti State in the Year 2021.
9. The Draft 2021 Budget has been prepared amidst the global
economic challenges occasioned by the Coronavirus pandemic. The
pandemic, which practically brought the global economy on its knees,
resulted in economic downturn, unprecedented fall in oil price which
culminated in oil production cut, Naira devaluation, inflation, and low
Gross Domestic Product (GDP). These unfavourable indices have
been considered in the Parameters, Assumptions and Indicators
(PAIs) used to prepare the Draft 2021 Budget. However, the
document aligns with the Fiscal Sustainability Plan (FSP) of the
Federal Government of Nigeria and the State Fiscal Transparency,
Accountability and Sustainability (SFTAS) Program-for-Results (P-
for-R) of the World Bank. The Document is also prepared in
compliance with the globally recognized and accepted International
Public Sector Accounting Standards (IPSAS), The Fiscal Responsibility
Law, 2020 (As amended) and the Ekiti State Public Financial
Management Law, 2020.

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10. The proposed 2021 Budget stems from the 2021-2023 Medium
Term Expenditure Framework (MTEF) which empirically measures
the reality of the significant macro-economic Parameters,
Assumptions and Indicators (PAIs) as a prognosis for year 2021.
REVIEW OF THE 2020 BUDGET
11. Mr. Speaker, Honourable members, Ladies and Gentlemen, let me
review the performance of the 2020 Budget before I present the
highlights of 2021 Draft Budget. The 2020 Budget christened
“Budget of Deliverables” with a size of One Hundred and Twenty-
Four Billion, Seven Hundred and Twenty-Four Million, Eight
Hundred and Sixty-Nine Thousand, Three Hundred and Fifty-Five
Naira and Ninety-Five Kobo (N124,724,869,355.95) only was
presented to the Ekiti State House of Assembly on 7th November,
2019. The 2020 Appropriation Bill was signed into Law on 18th
December, 2019. The 2020 Budget was prepared based on oil price
benchmark of $50 per barrel and an exchange rate of N305 to a
Dollar.
12. The sum of Seventy-Four Billion, Six Hundred and Nine Million,
Seven Hundred and Fifty-Seven Thousand, Nine Hundred and Nine
Naira and Twenty-Four kobo (N74,609,757,909.24) only was
Appropriated as Recurrent Revenue and the sum of Fifty Billion, One
Hundred and Fifteen Million, One Hundred and Eleven Thousand,
Four Hundred and Forty-Six Naira and Seventy-One Kobo
(N50,115,111,446.71) only as Capital Receipt.

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13. On the Expenditure side, the sum of Seventy-One Billion, One
Hundred and Eighty-Six Million, Seven Hundred and Seventy-Five
Thousand, Five Hundred and Forty-Nine Naira and Thirty-Six Kobo
(N71,186,775,549.36) only was Appropriated as Recurrent
Expenditure and the sum of Fifty-Three Billion, Five Hundred and
Thirty-Eight Million, Ninety-Three Thousand, Eight Hundred and Six
Naira and Fifty-Nine Kobo (N53,538,093,806.59K) as Capital
Expenditure.
14. However, the outbreak of the novel Coronavirus (COVID-19),
which dealt a debilitating blow on the global economy, threatened
the implementation of the 2020 Budget. In the beginning of the
second quarter of the 2020 fiscal year, the crude oil traded below
$20. This unprecedented economic shock also led to the devaluation
of the Nigerian Naira from N305 to a dollar to N360. This differential
posed a great challenge to the 2020 Budget.
15. In our avowed commitment to bringing dividends of democracy
to our people, our Government, despite the challenges posed by the
pandemic, completed and commissioned many legacy projects in
2020, paid salary of our workers regularly and promptly, and still
meet up with most of our social responsibilities geared at making
life better for our people.
16. To stem the tide and rescue the ailing economy, the 2020 Budget
was reviewed to reflect the economic realities as at then. The 2020
Budget was reviewed downward to Ninety-One Billion, One

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Hundred and Twenty-Eight Million, Nine Hundred and Ninety-Six
Million, Four Hundred and Eighty-Two Thousand and One Kobo
(N91,128,996,482.01) only. Permit me at this juncture to recognize
and appreciate our Development Partners, most especially, the
World Bank, the Africa Development Bank, Bill and Melinda Gates
Foundation, the Nigeria Governors’ Forum (NGF) which I chair and
the Development Agenda for Western Nigeria (DAWN) Commission
for the technical support towards the preparation of COVID-19
Responsive 2020 Supplementary Budget.
17. The 2020 Recurrent Revenue was reviewed to Fifty-Four Billion,
Three Hundred and Sixty-Three Million, Nine Hundred and Fifty-
Eight Thousand, Seven Hundred and Sixty-Three Naira
(N54,363,958,763.00) only while Capital Receipt was Thirty-Six
Billion, Seven Hundred and Sixty-Five Million, Thirty-Seven
Thousand, Seven Hundred and Nineteen Naira and One Kobo
(N36,765,037,719.01) only.
ACHIEVEMENTS OF THE 2020 BUDGET
18. It is imperative to highlight some notable achievements of this
administration in spite of the numerous challenges that we faced as
a Government in 2020. Notwithstanding the meagre resources at our
disposal and the effects of the pandemic, we delivered substantially
on some of our mandates by implementing some legacy programmes
and projects across the State in line with the five (5) Pillars of our

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Administration. Some of the laudable projects completed in 2020
are:
i. The Civic Centre
ii. Ultra-Modern Market in Ado Ekiti.
iii. Water Corporation Headquarters, Ado Ekiti
iv. Rehabilitation of Ero Dam
v. Rehabilitation of Egbe Dam
vi. Ikun Dairy Farm resuscitated through PPP arrangement
with Promasidor Nigeria Limited (Producer of Cowbell
Milk)
vii. Completion of Two Secretariat Buildings (commissioned)
viii. Completion of four new Model Secondary Schools in Ado
Ekiti namely: Ayo-Fasanmi Model College, Ilokun-
Iworoko Road, Ado-Ekiti, Banji Akintoye Model College,
Ijan Road, Ado-Ekiti, and David Oke Model College, Ikere
Road, Ado-Ekiti and Deji Fasuan Model College, while
several other schools were constructed or renovated
through SUBEB.
ix. Renovation of Hospital Buildings at the Ekiti State
University Teaching Hospital, (EKSUTH) Ado Ekiti.

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x. Installation of Molecular Laboratory at the Teaching
Hospital, Ado Ekiti.
xi. Renovation of House of Assembly Complex
xii. About fifty (50) EKCSDA projects completed and
commissioned.
xiii. Recruitment of Teachers, Doctors and Civil Servants.
2021 BUDGET IN FOCUS.
19. Rt. Hon. Speaker, distinguished Honourable Members, Ladies and
Gentlemen, the 2021 Budget is aimed at speedy economy recovery
and restoration from the debilitating effects of the Coronavirus.
Based on global forecast, it is envisaged that the impact of the
pandemic would span for a period of two to three years. The 2021
Budget, therefore, is designed to lift our people out of poverty. It
shall focus on empowerment and social security. Consequently, the
Budget, has been christened Budget of Recovery and Economic
Restoration.
20. To mitigate the effect of the pandemic on our economy in the
year 2021, we have developed a 2021 Draft Budget to restore the
ailing economy to a buoyant state through strategic investments in
critical Sectors of the State. The Draft 2021 Budget is a Zero-Based
Budget, which shall be activities based. It has articulated the
collective needs of the State within the ambit of the projected
revenue sources.

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OBJECTIVES OF THE 2021 BUDGET
21. The objectives of the 2021 Budget have been developed in line
with the five (5) Pillars of our administration namely: Agriculture
and Rural Development, Infrastructure and Industrial Development,
Social Investments, Knowledge Economy and Governance. The
objectives therefore include:
i. to establish a fiscal framework consistent with
government Fiscal Policy, extant rules such as the Ekiti
Public Finance Management Law, 2020, Fiscal
Responsibility Law, 2020, Public Procurement Law, 2020
among others for effective implementation of the
proposed 2021 Budget;
ii. to maintain and increase the vibrant platform for the
development of Agriculture and Small and Medium Scale
Enterprises (SMSEs) in the State towards rapid job
creation; to ensure speedy completion of all the on-going
developmental projects through equitable and prudent
distribution and allocation of the available resources;
iii. to further explore all revenue sources, expand tax base,
to continue to use Treasury Single Account (TSA) with a
view to improving and widening the revenue generation
drive of the State hence, reducing the dependence on
Federal Allocation;

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iv. to eliminate poverty through strategic and well-
coordinated empowerment programmes and other social
investment programmes;
v. to contain the spread of COVID-19 pandemic and cushion
its effects on the social and economic activities in the
State;
vi. to continue to improve the ease-of-doing business by
creating an enabling environment for socio-economic
activities in the State to build the thrust and attract more
domestic and foreign Investors;
vii. to facilitate programmes tailored towards widening
Human Capital Development and capacity building in the
State through strategic investments in qualitative
education businesses, and healthcare delivery system
and Agribusiness;
viii. to promote good governance through E-Govt Initiative,
Budget discipline, probity and accountability in the
allocation and utilization of public funds;
ix. and to increase the Gross Domestic Product (GDP) of the
State.

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HIGHLIGHTS OF THE 2021 BUDGET
22. My administration is of the candid opinion that the annual
Budget should be realistic with minimal variance. Consequently,
considering the identified and identifiable sources of revenue, the
2021 Budget document will channel the roadmap for Government
business in the year 2021. It is in this regard that we have proposed a
Budget size of One Hundred and Nine Billion, Six Hundred and Sixty-
Six Million, Three Hundred and Seventy-Six Thousand, Seven
Hundred and Twenty-Two Naira, Sixty-One kobo.
(N109,666,376,722:61) only for the 2021 fiscal year. This represents
a 20% increase when compared to 2020 Supplementary Budget
which had a size of N91,128,996,482.01 only. This Budget of
Recovery and Economic Restoration is in accordance with the five (5)
Pillars of my Administration and the classification is as follows:
Agriculture & Rural Development - N7,920,439,216.75 (7%)
Infrastructure & Industrial Development - N25,217,177,807.67
(23%)
Knowledge Economy - N21,931,894,938.68 (20%)
Social Investments - N25,274,622,256.29 (23%)
Governance - N29,322,242,503.22 (27%)
REVENUE PROJECTIONS
23. The major sources of revenue for the proposed 2021 Budget are
Federal Allocation, the Value Added Tax, Internally Generated Revenue,
Revenues/Grants from the State Fiscal Transparency, Accountability

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and Sustainability Programme (SFTAS) and Drawdown from our
Development Partners.
RECURRENT EXPENDITURE
24. In the proposed 2021 Budget, the sum of Fifty-Seven Billion, Nine
Hundred and Ninety-Seven Million, Nine Hundred and Eighty-Nine
Thousand, Nine Hundred and Eighty-Two Naira, Sixty-Two Kobo
(N57,997,989,982.62) has been earmarked for Recurrent Expenditure
of Government. This represents 53% of the total Budget. The Recurrent
Revenue will be expended on Personnel Cost, Overhead Cost, Grants to
Parastatals and Consolidated Revenue Fund Charges.
25. Mr. Speaker, this Administration places high premium on the
welfare of its workers. We have kept faith with our electioneering
promise of prompt payment of Salaries. We are also committed to
clearing backlogs of outstanding salaries and other emoluments. We
commenced the implementation of the new minimum wage to officers
on Grade Levels 01-07 in 2020. While we were on the verge of
concluding negotiation to commence the full implementation of the
Consequential Adjustment of the new Minimum Wage for other
Officers on Grade Level 08 and above, the sudden outbreak of the
pandemic halted the process. Provision has been made in the 2021
Budget to implement the new minimum wage.
26. Aside the cost of running the day to day business of Ministries,
Departments and Agencies (MDAs), my administration has made
provisions for our people in the areas of security, sensitization and

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empowerment programmes and social security schemes to improve
their standard of living and Job Creation.
CAPITAL EXPENDITURE
27. Mr. Speaker, Honourable Members of the House of Assembly and
my highly esteemed people, we are all aware that the livewire of any
economy lies in its drive to implement valuable developmental projects
which will attract Investors thus improving the Gross Domestic
Product (GDP) with the overall goal of improving the aggregate
standard of living.
28. The five (5) Pillars of my administration have remained hinged
on this ethos. This also explains the successes we have recorded so far
with the implementation of several capital projects across the State. Let
me categorically state that we shall not rest on these laurels as our
aspiration has been rejuvenated to do more. We shall not be deterred
to bring smile to the faces of our people.
29. The completion of all on-going projects as well as the
commencement of new essential ones shall be vigorously pursued. It is
in this regard that we are proposing an amount of Fifty-One Billion, Six
Hundred and Six-Eight Million, Three Hundred and Eighty-Six
Thousand, Seven Hundred and Thirty-Nine Naira, Ninety-Nine Kobo
(N51,668,386,739.99) as Capital Expenditure in the Draft 2021Budget.
This represents 47% of the entire 2021 Budget.

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30. A major focus of my administration in the year 2021 is
Agriculture and Food Security and Rural Development. This
Government has signed Memorandum of Understanding (MoU) with
different Investors in Agribusiness to transform the sector. To further
enhance productivity and service delivery, the defunct Ministry of
Agriculture and Rural Development has been bifurcated into the
Ministry of Agriculture and Food Security and the Bureau of Rural and
Community Development. To ensure food security, this administration,
in 2020, embarked on massive land clearing for our Agribusiness. Our
Rural Access Agriculture Marketing Projects, a collaborative project,
shall embark on the construction/grading of our rural and feeder roads
in 2021. 1000 kilometres of our rural access roads shall be constructed
to enhance the distribution of farm produce to the various markets.
31. On Infrastructuree development, Distinguished Ladies and
Gentlemen, adequate provisions have been made in the 2021 proposed
Budget to consolidate on our efforts on the provision of the basic
infrastructure to improve their aesthetic and economic values. We have
prioritized the completion of the Ado-Iyin Road construction as well as
the on-going construction/rehabilitation of the four major roads across
the three Senatorial Districts of the State namely: Agbado-Ode-Omuo
Road, Ilupeju-Ire-Igbemo Road, Aramoko-Erijiyan-Ikogosi Road and
Oye-Ayede-Iye-Otun Road and other critical inter township roads for
security reasons and also agricultural chain. To boost economic
activities of the State, work shall continue on the construction of our
Cargo Airport project in 2021 and commence on the first phase of the
Ring Road around the capital.

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32. Furthermore, efforts are in top gear to collaborate with
Transition Company of Nigeria (TCN) to build 233KVA in Ekiti State in
2021. My Government, in collaboration with our Development
Partners, will also embark on Independent Power Project in 2021. To
ensure wider coverage and better transmission in our hilly hinterlands,
such as Efon Alaaye, Okemesi, among others, Booster Station shall be
built for our Radio and Television Stations.
33. To curtail the impact of ecological degradation such as erosion
and water shedding issues, adequate provisions have been made for
channelization and other ecological projects under the Nigerian
Erosion and Watershed Management Project (NEWMAP) in the 2021
proposed Budget.
34. Mr. Speaker, it is of general knowledge that our dear State is
greatly endowed with human capital resources, Consequently, under
our Knowledge Economy, the Knowledge Zone shall take off in 2021.
Since it is a collaborative project with the Federal Government of
Nigeria, we shall provide all necessary enabling environment for the
project. In this regard, we are already collaborating with the Nigerian
Export Processing Zone Authority.
35. I wish to state categorically, that the development of our
educational facility is of great desire. However, we shall continue with
the renovation as well as the construction of befitting learning facilities
for our wards. We shall also be supporting the State owned Tertiary
Institutions with funds to carry out developmental capital projects.

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36. Social Investments: My administration is keen on providing the
numerous socio-economic needs of our people. We have prioritized our
collective needs on healthcare services, social and gender
empowerments, sports and youth development and social security
schemes in the proposed 2021 Budget. We shall continue with the
Ounje Arugbo and Owo Arugbo programmes for our elders in the State.
Of great interest is the State COVID-19 Action Recovery and Economic
Stimulus (State CARES) programmes which has been captured
succinctly in the 2021 proposed Budget to cushion the effects of
Coronavirus on our people and lift them out of poverty. This
programme cuts across all sectors of the economy, Social Transfer,
Agricultural and Food Security and Small and Medium Enterprise
(SME) Recovery. Adequate provisions have been made for the
renovation, maintenance and equipping of Primary and Secondary
Health Facilities. Furthermore, in order to combat unforeseen outbreak
of diseases in the State, substantial emergency vote has been included
in this fiscal document to address this issue in the State. It is also our
priority to renovate/equip at least, one Comprehensive Health Centre
in each of the 177 wards of Ekiti State.
37. On Governance, our administration shall continue to accord
priority to participatory and all-inclusive governance in 2021.
Activities of Open Government Partnership shall begin fully in 2021.
The Ministry of Budget and Economic Planning also launched a public
Budgeting App to track and monitor Budgeting Process.

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38. Security: We are all aware of the security challenge being faced in
the country. The recent EndSARS protest of our youths which was
hijacked by hoodlums is an eye opener. We have made provision for
Safe City Project in the 2021 Budget. Also, the Regional Security
Network “Amotekun” shall be fully operational in 2021.
39. In furtherance of our objective to give our Royal Fathers the well-
deserved honour and improve on their welfare, our Government
commenced renovation of palaces in Ekiti State. We shall ensure the
completion of the renovation of the palaces before the end of our
administration.
KEY ASSUMPTIONS OF THE 2021 BUDGET OF ECONOMIC
RESTORATION
40. The 2021 Budget is critical in the sense that it is the first Budget
after the pandemic. The Assumptions have been carefully forecast and
projected to make the Budget realistic. These assumptions are
predicated on the 2021-2023 Medium Term Expenditure Framework
(MTEF) as follows:
i. Crude Oil Benchmark of US $38 per barrel
ii. Oil Production estimate of 1.65 Million barrel per day
iii. Exchange Rate of N379/US Dollar
iv. Inflation rate of 11.98%
v. Mineral Ratio of 30%

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vi. Gross Domestic Product Growth Rate of 3%
THE 2021 BUDGET HIGHLIGHTS
41. Mr Speaker, distinguished Ladies and Gentlemen, for the 2021
fiscal year, the Government of Ekiti State is proposing a total Budget
size of One Hundred and Nine Billion, Six Hundred and Sixty-Six
Million, Three Hundred and Seventy-Six Thousand, Seven Hundred
and Twenty-Two Naira, Sixty-One kobo. (N109,666,376,722:61) only
to cater for both Recurrent and Capital Expenditure.
42. Mr Speaker, distinguished Ladies and Gentlemen, for the 2021
fiscal year, the Government of Ekiti State is proposing a total Budget
size of One Hundred and Nine Billion, Six Hundred and Sixty-Six
Million, Three Hundred and Seventy-Six Thousand, Seven Hundred
and Twenty-Two Naira, Sixty-One kobo. (N109,666,376,722:61) only
to cater for both Recurrent and Capital Expenditure.
43. The Capital Expenditure is Fifty-One Billion, Six Hundred and Six-
Eight Million, Three Hundred and Eighty-Six Thousand, Seven
Hundred and Thirty-Nine Naira, Ninety-Nine Kobo
(N51,668,386,739.99) representing 47% of the Budget Estimate
while the total Recurrent Expenditure is Fifty-Seven Billion, Nine
Hundred and Ninety-Seven Million, Nine Hundred and Eighty-Nine
Thousand, Nine Hundred and Eighty-Two Naira, Sixty-Two Kobo
(N57,997,989,982.62) representing 53%.
CONCLUSION

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44. Mr. Speaker Sir, Honourable Members, distinguished ladies and
gentlemen, the Budget proposal which I have just presented contains
the policy thrust, programmes and vision of the administration for
2021. Efforts shall be made to source the needed resources to fund
the Budget.
45. I urge the Honourable House to give thorough and timely
consideration to the passage of the Revenue and Expenditure
Estimates to enhance earnest implementation. The Honourable
Commissioner for Budget and Economic Planning shall give detailed
analysis of the Budget after passage into law.
46. It is therefore, with great pleasure and deep sense of
responsibility that I lay before this Honourable Assembly, the 2021
Budget estimate of Ekiti State, which has been christened Budget of
Recovery and Economic Restoration.
47. God Bless Ekiti State, God bless Nigeria.
48. Alale Ekiti a gbe a o!
Dr. Kayode Fayemi, CON
Governor