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| Governor Ifeanyi Okowa presenting Delta's 2020 budget. |
Delta State Governor, Dr Ifeanyi Okowa, this morning, Wednesday,
November 6, 2019 presented the 2020 Appropriation Bill of N389.19 billion
christened "Budget of Sustainable Development" to the House of
Assembly.
The governor announced that Capital Expenditure of the budget
would gulp N217.64 billion representing 55.92 per cent and that N171.55 billion
or 44.08 per cent had been earmarked for Recurrent Expenditure during the
period.
The budget is a little less than 2019’s N390.38 billion
comprised of N157.10 billion for recurrent expenditure and N233.28 billion for
capital expenditure.
Okowa said that the 2020 budget would help his administration to
achieve fiscal stability and promote accountability as imperatives for
sustained economic growth.
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| Governor Okowa making his 2020 budget speech in the House of Assembly. |
He said that he would prioritize efficiency in expenditure
through stringent control on non-productive expenditure, judicious allocation
of resources and cost effectiveness of project delivery.
The governor also stated that the budget would accelerate
rural-urban integration and urban renewal through roads and flood control
infrastructure, markets development, housing and sanitation.
He said it was targeted at growing the non-oil sectors to
produce an economy that was truly diversified, self-reliant, resilient and
could withstand external shocks.
``During the fiscal year, we will continue to pursue Health for
all Deltans (HeFAD) in line with the Universal Health Coverage mandate of the
United Nations Sustainable Development Goals.
``Through the budget, we will increase investment in youth
entrepreneurship development programmes as well as technical/vocational
education designed to foster a new generation of wealth creators, business
leaders and managers. ``It will deepen and strengthen our social investment
programmes for improved protection of the poor and vulnerable segments of the
society, and escalate our peace-building initiatives to secure our oil and gas
installations.
``It will ensure public safety and engender an investor-friendly
climate, boost revenue through widening of the tax base and administration of a
functional tax regime that is fair, just and equitable and engender a more
responsive and efficient public sector," he said.
 |
| Governor Okowa answering questions from journalists shortly after presenting the 2020 budget. |
Road and Physical Infrastructure sector was allocated N84.54
billion, the highest amount of the budget and was followed by Education with
N31.6 billion.
Find below full text of the Delta State 2020 Appropriation Bill
presented to the House of Assembly by Governor Ifeanyi Okowa:
ADDRESS BY HIS EXCELLENCY, SENATOR,
DR.
IFEANYI OKOWA, GOVERNOR OF DELTA
STATE,
ON THE OCASSION OF THE PRESENTATION OF
THE 2020 BUDGET PROPOSALS TO THE DELTA
STATE HOUSE OF ASSEMBLY ON WEDNESDAY,
NOVEMBER 06, 2019
Mr. Speaker,
Honourable Members.
As is customary, it is important to
express my
appreciation to this honourable House
for the
opportunity to make this presentation
today. As an
elected Governor, I consider myself
and, indeed, the
State blessed by the candour and
civility with which this
House conducts its business. It is one
that makes for
unabridged development and I continue
to count on this
strong partnership as we strive to build
a Stronger Delta
2
standing on the tripod of Prosperity,
Peace and
Progress.
2. I will begin by saying that I am
presenting this
budget from a position of cautious
optimism. Several
reasons account for this.
Beginning with recent trends in the
oil sector, the
mainstay of the national economy,
there are major
policy issues which face the country,
not only in this
new budget year, but over the medium
term, which
will impact significantly on politics
and governance
at all levels of Government.
Although the global price of oil
remains relatively
stable at about $57 per barrel, it is
still low and
under the federal budget benchmark of
$60.
Matched against the fluctuating oil
production
levels, which, in recent months,
dropped to as low
as 1.78mbpd as against the projected
2.18mbpd,
there is serious cause for concern.
3
Coupled with the commencement of the
deduction
at source of the Bail Out Funds to the
States by the
Federal Government, we are faced with
the
prospects of continual fiscal
adjustments that will
doubtless be challenging and
problematic.
Although all available indices
project a positive
national economic outlook in 2020, the
cost of
governance at all levels of government
is at the
same time expected to rise sharply
with the
implementation of the new minimum
wage.
The new VAT regime of 7.5%, designed
to shore up
the national revenue, more than
likely, will not
induce any dramatic changes in terms
of the net
gain to the fiscal revenue as the anticipated
increase will largely be offset by the
attendant rise
in the cost of goods and services as
well as the new
minimum wage.
While the various reforms and fiscal
adjustments of
the last four years of this
administration have placed
4
Delta State on a much more secure and
sustained
growth trajectory, our GDP is still
dominated by the
oil and gas sector notwithstanding
significant
incremental outputs from the social
services and
agriculture sectors.
The pension liability of the State
remains onerous
and continues to exert a huge toll on
our finances.
Private investment is still hampered
by
environmental factors, notably high
interest rates,
macro-economic instability and
security concerns.
3. Given the above scenario, the 2020
budget
proposals, the first in the second
tenure of this
administration, is a critical budget
and even if we focus
on one objective, that of achieving
stability in
governance, it is one requiring deep
introspection and
public understanding. The broad
strategy of the budget,
therefore, is to:
i. Achieve fiscal stability and
promote accountability
as imperatives for sustained economic
growth;
5
ii. Prioritise efficiency in
expenditure through
stringent control on non-productive
expenditure,
judicious allocation of resources and
cost
effectiveness of project delivery;
iii. Accelerate rural-urban
integration and urban
renewal through roads and flood
control
infrastructure, markets development,
housing and
sanitation;
iv. Grow the non-oil sectors to
produce an
economy that is truly diversified,
self-reliant,
resilient and that can withstand
external shocks;
v. Continue to pursue Health for all
Deltans
(HeFAD) in line with the Universal
Health
Coverage mandate of the United Nations
Sustainable Development Goals;
vi. Increase investment in youth
entrepreneurship
development programmes as well as
technical/vocational education
designed to foster
6
a new generation of wealth creators,
business
leaders and managers;
vii. Deepen and strengthen our social
investment
programmes for improved protection of
the poor
and vulnerable segments of the
society;
viii. Escalate our peace building
initiatives to secure
our oil and gas installations, ensure
public safety
and engender an investor-friendly
climate;
ix. Boost revenue through widening of
the tax
base and administration of a
functional tax regime
that is fair, just and equitable; and
x. A more responsive and efficient
public sector.
KEEPING THE MOMENTUM GOING
4. As usual, I will precede my
presentation this
morning by acquainting you with some
important
developments in our State since I was
sworn into office
for a second term.
The Future of Asaba Airport
7
5. We achieved another breakthrough
with Asaba
Airport in August this year with the
approval by the State
Executive Council for the
concessioning of the Airport to
a consortium of investors led by
Menzes Aviation, a
world-renowned aviation company. It is
the first full
brownfield airport concession in
Africa and a hybrid
arrangement covering further
development and
management of the airport.
6. Key highlights of the transaction
are as follows:
- Menzies Aviation to manage the
Airport and provide
airline support services;
- First Investment Development.
Company to build
Radisson Blu Hotel and Convention
Centre at the
Airport;
- Air Peace to operate as Anchor
Airline and to build
and operate a commercial Maintenance,
Repair and
Overhaul Facility;
- Rainoil to operate the Tank Farm and
provide Jet
A1 Fuel for Aircraft;
8
- Cybernatics to develop the Cargo
Terminal and
Logistics Centre;
- Quorum Aviation to build private
jets terminal and
operate helicopter services for the
oil and gas
industry; and
- Arbico Construction company to
develop and
manage the business park.
7. The concession is, in the first
instance, for a period
of 30 years with annual concession fee
of N100m
payable to the Delta State Government,
escalating by
10% every five years. There is also
annual royalty of
2.5% of Gross Annual Revenue payable
to the State.
With over N28b expected to be pumped
into the airport
development by the concessionaire over
the next three
years, the benefits to the State in
terms of employment
opportunities, urban renewal and
tourism potentials are
enormous.
Kwale Industrial Park
9
8. As you are aware, I just returned
from China where
we held a Road Show for the proposed
Kwale Industrial
Park. It afforded the State Government
delegation the
opportunity to market the Park and our
State to the
Chinese business and investment community.
So far,
we have received expression of
interest from companies
willing to establish a glass factory,
ceramics factory and
an agro-allied industry for soya
beans.
9. In a meeting with another group of
investors in
Nanjing, Jiangsu Province, a company
with a 400-metric
tonne capacity methanol plant
indicated its readiness to
immediately set up a plant at the
Park. It was agreed
that a team from the State would visit
their factory within
the next month while officials of the
company are to
come for a site visit immediately
thereafter. The
company is hopeful of moving their
operations to Kwale
Industrial Park within the first half
of 2020.
10. To refresh our memories, the Kwale
Industrial Park
is designed to profit from the
competitive advantage of
10
the State in the gas and energy
sector. Located along
the Ughelli-Asaba road, the Park is
envisaged to be one
of Nigeria’s biggest location for gas
and energy intensive
manufacturing, encompassing ceramics,
rubber,
methanol, pulp and paper. It is a
mix-use
industrial/business location featuring
industrial,
commercial, administrative and
residential sections in
the Park. Heavy and light
manufacturing activities will be
in the industrial sector while
schools, shopping centres,
banking halls and recreation
facilities will be
concentrated in the commercial sector.
11. Once fully operational, the Kwale
Industrial Park is
expected to be a major driver of this
administration’s
industrialisation agenda and provide
immense
employment opportunities for our
people.
Agro-Industrial Park, Aboh-Ogwashi-Uku
12. In line with the agricultural
transformation and
wealth creation objectives of this
administration, the
State Government is implementing a
public-private
11
partnership for the establishment and
operation of an
Agro-Industrial Park at Aboh
Ogwashi-Uku in
partnership with Mirai Technologies
Ltd as technical
partner and anchor investor, and
Norsworthy
Investments Ltd. as participating
investor.
13. Following rigorous project
appraisal and the
completion of all design-phase
activities, the project
development is currently at financial
closure, preparatory
to the construction phase. When fully
established, the
Agro-Industrial Park will be the
principal catalyst of the
agricultural commodity value chains,
create thousands
of new jobs and multiply wealth for
the teeming youth
and agricultural population of the
State.
14. In the 2020 fiscal year, the
construction and
development of the Agro-Industrial
Park will be
prioritized among the crucial public
investments of the
State Government.
Opening the Riverine Communities
through Road
Infrastructure
12
15. On July 12, this year, this
administration recorded a
major feat with the commissioning by
Vice-President
Yemi Osinbajo of roads in the hitherto
neglected riverine
communities, notably the 20.29 km
Obotobo 1- Obotobo
11 – Sokebolou – Yokri, Township roads
(Phase 2) and
the Main Axial Road at Okerenkoko in
Warri South West
Local Government Area. In the case of
the Obotobo 1 -
Obotobo 11 – Sokebolou – Yokri road,
it is not just the
length of the road that makes this
project unique; it is
that the road is located right beside
the Atlantic Ocean
with all the human, material, ecological
and financial
implications that this difficult
terrain presents.
16. Also, this major access road in
Ogulagha Kingdom
cuts across four communities that
contribute a large
chunk of crude oil to the national
economy as well as
right through the various oil
production companies and
the oil pipelines manifolds along the
road. It goes
without saying, therefore, that this
road would ease the
movement of people, goods and services
within the
13
communities as well as improve their
socio-economic
life.
17. Similar road projects undertaken
by this
administration in riverine communities
include the paving
of Burutu Township roads, on-going
construction of
Rigid Concrete Pavement Road at
Ogidigben,
construction of Access Road to Nigeria
Maritime
University Okerenkoko (Kurutie
Campus), construction
of Oporoza Palace Road in Gbaramatu
Kingdom, all in
Warri South West Local Government
Area, as well as
the Construction of
Ogulagha/Youbebe/Biniebiama
Road, in Burutu Local Government Area.
18. These projects demonstrate our
commitment to
bring development to every part of the
State, no matter
how remote. Furthermore, they have
greatly helped to
ensure peace in the State, which bodes
well for
uninterrupted oil production and the
health of the
national economy. As I remarked during
the June 12
commissioning ceremony, “it is a
triumph of will over
14
danger, hard work over resignation and
determination
over adversity.”
Warri, Uvwie and Environs Storm Water
Drainage
Project
19. The State Government has commenced
the
process of constructing a massive
storm water drainage
project in Warri, Uvwie and Environs
to tackle the
recurring problem of flooding and
environmental
degradation in the area. Before now we
appointed a
consultant, who, working with a
Government-appointed
Committee studied the problem of
perennial
flooding/erosion in Warri, Uvwie and
Environs, and drew
up a Master Plan to tackle the
problem.
20. Given the massive nature of the
project and the
huge costs involved, the State
Government has decided
to execute it in phases. The first and
second phases,
expected to commence this dry season,
will cover the
high-risk areas within the Warri
metropolis. It will involve
15
desilting of natural drainage channels
(some of them will
be dredged), demolition and
reconstruction of
undersized drains and construction of
new water
channels. We are currently processing
the award of
contracts for the first two phases
worth N9.5b Hopefully,
we should be able to complete the
project in good time
so that our people can have some
relief when the rains
come.
School Census, Audit and Mapping
21. Through the Ministry of Basic and
Secondary
Education, we have commissioned a
comprehensive
study of all public primary and
secondary schools in
Delta State. This study is being
carried out by a
renowned international research
company to assess the
current state of our primary and
secondary schools,
especially in terms of physical
infrastructure, manpower
distribution and curriculum
development. The outcome
of this study will guide future
government intervention
16
and the construction of
infrastructural facilities in our
primary and secondary schools.
REVIEW OF THE YEAR 2019 BUDGET
22. I will now begin my presentation
by reviewing the
performance of the 2019 Budget.
COMPONENTS OF THE 2019 BUDGET
23. During the 2019 fiscal year,
Government budgeted
the sum of three hundred and ninety
billion, three
hundred and seventy-eight million, six
hundred and
seventy-one thousand, one hundred and
seventy-eight
naira (N390,378,671,178). This
comprised One Hundred
and Fifty Seven Billion, Ninety Six
Million, Twenty Nine
Thousand, Two Hundred and Fifty Three
Naira
(N157,096,029,253) for recurrent
expenditure, and Two
Hundred and Thirty Three Billion, Two
Hundred and
Eighty Two Million, Six Hundred and
Forty One
Thousand, Nine Hundred and Twenty Five
Naira
(N233,282,641,925) for capital
expenditure.
17
24. The main sources of funds for the
2019 budget:
Revenue Sources
Approved Budget
2019 % Approved
Internally Generated
Revenue 73,410,363,076 18.80
Statutory Allocation
Including Mineral Revenue
Derivation 217,894,748,193 55.82
Value Added Tax 13,051,179,721 3.34
Other Capital
Receipts/Miscellaneous 86,022,380,188
22.04
Total Revenue
N
390,378,671,178 100
18
2019 REVENUE PERFORMANCE
DETAIL OF
ITEM
APPROVED
BUDGET 2019
PROPORTIONAT
E BUDGET JAN -
AUGUST, 2019
ACTUAL JAN -
AUGUST, 2019
%
PERF
Internally
Generated
Revenue 73,410,363,076 48,940,242,051
36,168,411,689
73.90
Statutory
Allocation
Including Mineral
Rev. Derivation 217,894,748,193
145,263,165,462
151,224,187,289
104.10
Value Added
Tax 13,051,179,721 8,700,786,481
10,025,753,736
115.23
Other Capital
Receipts/Miscell
aneous 86,022,380,188 57,348,253,459
41,138,071,875
71.73
TOTAL
REVENUE
390,378,671,178
260,252,447,452
238,556,424,588
91.66
19
25. Despite some economic hiccups at
the national and
sub-national levels, the State was
able to record
improved performance in statutory
allocation and Value
Added Tax. The Statutory Allocation in
the first eight
months of the year brought in the sum
of one hundred
and fifty-one billion, two hundred and
twenty-four million,
one hundred and eighty seven thousand,
two hundred
and eighty nine naira only
(N151,224,187,289) as
against the proportionate sum of one
hundred and forty-
five billion, two hundred and
sixty-three million, one
hundred and sixty-five thousand, two
hundred and
eighty-nine naira (N145,263,165,462)
amounting to
104% performance.
26. From Value Added Tax, we received
ten billion,
twenty-five million, seven hundred and
fifty-three
thousand, seven hundred and thirty-six
naira
(N10,025,753,736) against the
proportionate budget of
eight billion, seven hundred million,
seven hundred and
20
eighty-six thousand, four hundred and
eighty-one naira
(N8,700,786,481) or 115%.
27. As at August, Internally Generated
Revenue has
raked in the sum of thirty-six
billion, one hundred and
sixty-eight million, four hundred and
eleven thousand,
six hundred and eighty-nine naira
(N36,168,411,689),
amounting to 74% budget performance.
This relatively
good performance in all revenue
streams could be
attributed to increased oil sales and
improved
performance of our revenue collection
efforts.
28. Our overall revenue performance
for the first eight
months of the year (January to
August), 2019 amounted
to two hundred and thirty-eight
billion, five hundred and
fifty-six million, four hundred and
twenty-four thousand,
five hundred and eighty-eight naira
(N238,556,424,588)
as against the proportionate approved
budget of two
hundred and sixty billion, two hundred
and fifty-two
million, four hundred and forty-seven
thousand, four
21
hundred and fifty-two naira
(N260,252,447,452), which
is approximately 91.66% performance.
2019 RECURRENT EXPENDITURE PERFORMANCE
Recurrent
Expenditure
Approved Budget
2019
Proportionate
Budget Jan -
August, 2019
Actual Jan -
August, 2019
%
Performanc
e
Personnel
Costs 66,165,356,710 44,110,237,807
52,672,774,467 119.41
Overhead
Costs /
Consolidated
Revenue Fund
Charges 90,930,672,543 60,620,448,362
65,863,716,264 108.65
TOTAL
RECURRENT
EXPENDITUR
E
157,096,029,253
104,730,686,16
9
118,536,490,731 113.18
29. The recurrent budget for year 2019
is one hundred
and fifty-seven billion, ninety-six
million, twenty nine
thousand, two hundred and fifty three
naira
(N157,096,029,253) with eight months
proportionate
budget figure of one hundred and four
billion, seven
hundred and thirty million, six
hundred and eighty six
thousand, one hundred and sixty-nine
naira
(N104,730,686,169). The actual
expenditure within the
22
period under review is one hundred and
eighteen billion,
five hundred and thirty-six million,
four hundred and
ninety thousand, seven hundred and
thirty-one naira
(N118,536,490,731) or 113.18% budget
performance.
30. One of the transactions that
accounted for the
robust performance is our resolve to
clear all backlog of
workers promotion arrears, some dating
back to 2013.
This accounts for the high personnel
cost performance
for the period under review.
31. Against an approved budget of
sixty six billion, one
hundred and sixty five million, three
hundred and fifty six
thousand, seven hundred and ten naira
(N66,165,356,710), the sum of fifty
two billion, six
hundred and seventy two million, seven
hundred and
seventy four thousand, four hundred
and sixty seven
naira (N52,672,774,467) was spent on
payment of
salaries for the period January to
August 2019.
32. Matched with the proportionate
budget of forty-four
billion, one hundred and ten million,
two hundred and
23
thirty-seven thousand, eight hundred
and seven naira
(N44,110,237,807), this accounts for a
performance of
approximately 120%.
33. In keeping with our desire to continue
to motivate
our workforce in order to elicit the
highest level of
productivity possible, Government has
thus far cleared
all historical arrears that have to do
with workers’
salaries.
CAPITAL EXPENDITURE PERFORMANCE
Capital
Expenditure
Approved
Budget 2019
Proportionate
Budget Jan - August,
2019
Actual Jan -
August, 2019 % Performance
Administration
Sector
19,983,414,038 13,322,276,025
2,312,367,150 17.36
Economic
Sector
131,064,846,28
3 87,376,564,189
107,731,419,56
1 123.30
Law & Justice
Sector
3,445,848,935 2,297,232,623
455,449,145 19.83
Regional Sector
31,000,000,000 20,666,666,667
22,230,385,251 107.57
Social Sector
44,788,532,669 29,859,021,779
6,721,066,511 22.51
24
Contingency
Fund
3,000,000,000 2,000,000,000 - -
CAPITAL
EXPENDITURE
233,282,641,92
5 155,521,761,283
139,450,687,61
7 89.67
NOTE: Actual expenditure for
Contingency Fund is
already reported across the sectors,
as the Contingency
Fund is not a Vote of Charge.
34. Our capital budget in 2019 was two
hundred and
thirty-three billion, two hundred and
eighty-two million,
six hundred and forty-one thousand,
nine hundred and
twenty-five naira (N233,282,641,925).
This gives a
proportionate figure of one hundred
and fifty-five billion,
five hundred and twenty-one million,
seven hundred and
sixty one thousand, two hundred and
eighty-three naira
(N155,521,761,283) for the period,
January to August
2019.
35. Actual payment for the period
stood at one hundred
and thirty-nine billion, four hundred
and fifty million, six
hundred and eighty-seven thousand, six
hundred and
seventeen naira (N139,450,687,617)
which represents
25
a performance of 89.67 %. Considerable
increase is
expected in the level of expenditure
in the fourth quarter
of the year due to the volume of civil
work that will pick
up from the month of October as we
take full advantage
of the dry season.
YEAR 2020 BUDGET
36. Mr. Speaker, Honourable members,
it is my pleasure
to present to this honourable House
the 2020 Budget
Proposals, christened “Budget of
Sustained
Development.”
37. The 2020 revenue and expenditure
estimates are
based on a Medium-Term Expenditure
Framework
(MTEF), which projected a $57
benchmark price for
crude oil at production levels of 2.18
million barrels per
day, 10.36% annual inflation, 3.60%
projected real GDP
growth and an exchange rate of N305 to
the US Dollar.
38. The proposed size of the year 2020
Budget is three
hundred and eighty-nine billion, one
hundred and ninety
26
million, seven hundred and ninety-nine
thousand, three
hundred and sixty-two naira
(N389,190,799,362). The
Recurrent Expenditure is one hundred
and seventy-one
billion, five hundred and forty-nine
million, three hundred
and forty-eight thousand, three
hundred and fifteen naira
(N171,549,384,315) while the provision
for Capital
Expenditure is two hundred and
seventeen billion, six
hundred and forty-one million, four
hundred and fifteen
thousand and forty-seven naira
(N217,641,415,047).
This represents 44.08% Recurrent
Expenditure and
55.92% Capital Expenditure, consistent
with our agenda
to spend more on projects and
programmes that will
impact directly on the socio-economic
well-being of our
people.
39. The total proposed budget size for
2020 dropped by
N1.18bn from the budget figure of
2019.
SUMMARY OF THE 2020 DRAFT REVENUE AND
EXPENDITURE ESTIMATES
RECURRENT REVENUE PROJECTION 2020
27
Revenue Detail
Proposed Provision
2020 % Proposed
Internally Generated Revenue
71,012,876,590 18.25
Statutory Allocation Including
Mineral Revenue Derivation
248,405,143,118 63.82
Value Added Tax 22,958,761,951 5.90
Other Capital
Receipts/Miscellaneous 46,814,017,703
12.03
TOTAL REVENUE 389,190,799,362 100
RECURRENT EXPENDITURE ESTIMATES 2020
Recurrent Expenditure
Details
Proposed
Provision 2020
%
Proposed
Personnel Costs 83,959,405,755 48.94
Overhead Costs 60,221,051,369 35.11
Consolidated Revenue Fund
Charges:
Statutory Emolument 467,230,932 0.27
Social Contribution 7,800,000,000 4.55
Social Benefit 5,008,000,000 2.92
Internal Debt Service
- 0.00
28
Domestic Loan Repayment
(Principal ) 6,667,696,259 3.89
External Loan Repayment 300,000,000
0.17
Grants and Contribution 7,126,000,000
4.15
Total Recurrent Expenditure
171,549,384,315 100
CAPITAL EXPENDITURE ESTIMATES 2020
40. The sum of N217,641,415,047 has
been allocated
for capital expenditure across sectors
as follows:
Capital Expenditure
Proposed Provision
2020 % Proposed
Administration Sector 12,374,527,400
5.69
Economic Sector 110,339,000,295 50.70
Law & Justice Sector
1,533,908,821 0.70
Regional Sector 43,714,320,016 20.09
29
Social Sector 46,679,658,515 21.45
Contingency Fund 3,000,000,000 1.38
TOTAL CAPITAL
EXPENDITURE 217,641,415,047 100
SECTORAL HIGHLIGHTS
ROADS AND PHYSICAL INFRASTRUCTURE
41. I don’t think I need to say much
about improving
roads and physical infrastructure. We
must continue with
significant investments in this sector
to connect our
communities, renew our urban centres,
boost commerce
and provide a more civilised living
environment for our
people.
42. The sum of N84.54 billion is
provided for the
Ministry of Works in the 2020 fiscal
year.
BUILDING A KNOWLEDGE ECONOMY
43. We intend to continue to
reposition our educational
system to equip our youth population
with the skill set
30
needed for this new world of rapid
change and digital
revolution. As you are aware,
technical and vocational
education has been our main policy
thrust in this sector.
During our first tenure, we completed
the rehabilitation
and equipping of the six technical
colleges in the State.
Accreditation of all trade subjects by
the National Board
for Technical Education (NBTE) was
achieved in 2018
and plans are underway for the
establishment of
additional Technical Colleges in the
remaining 19 Local
Government Areas of the State.
44. The Ministry of Technical
Education was recently
created to consolidate the gains we
have made and
institutionalise technical/vocational
education in our
schools’ curricula. Part of the
functions of the new
Ministry include formulation of
policies for technical
education and management of technical
colleges in the
state. The new Ministry will also
coordinate the
accreditation of technical colleges
and vocational
centres, process the registration and
licensing of
31
vocational enterprise institutions,
coordinate partnership
and investment of technical colleges
and vocational
Centres in the State, as well as
liaise with appropriate
Ministries, Departments and Agencies
in the
implementation of technical and
vocational education
and training programmes in the State.
45. The sum of N31.6 billion is
proposed for the
education sector in the 2020 fiscal
year.
DELIVERING QUALITY HEALTHCARE
46. Health is a right and quality
healthcare delivery is a
cardinal objective for government at
all levels. This
administration has remained
passionate, deliberate and
focused in its quest to formulate
tangible and lasting
policies and programmes for improving
the health of all
residents in the State. The
overarching goal of my
administration is to achieve Universal
Health Coverage
32
(UHC), by providing quality healthcare
services that is
readily accessible to all residents in
the State
irrespective of their status in the
society and their
residential location.
47. We are making steady progress in
our
implementation of the Universal Health
Coverage being
implemented and managed by the Delta
State
Contributory Health Commission. As at
September
2019, the total number of the enrolees
registered under
the scheme was 657,436.
-- equity plan: 499,158;
- formal plan enrolees: 150,170,
- informal Plan: 8,108.
48. To boost informal sector
registration, the
Commission has deployed Community
Based Liaison
Officers (CBLOs) and supervisors
across the State.
Their main function is to implement a
“compound to
33
compound” advocacy about the benefits
of participation
in a health insurance scheme, adoption
of better health
seeking behaviours, uptake of better
living standards
and upfront prioritization of
expenditure for health
through payment of premium for health
insurance.
49. There will be family discounts for
group premium
payment, and payments can be done in
convenient
instalments. Wealthy individuals and
philanthropists in
the area will be encouraged and
supported to make
premium contribution(s) on behalf of
the poor and
vulnerable in the various communities.
Efforts are also
being made to leverage on the
implementation of the
Basic Healthcare Provision Fund
(BHCPF) to enhance
the Informal Sector registration
through the integration of
the Basic Healthcare Provision Fund
and the Delta State
Contributory Health Scheme.
50. Our administration has also made
significant
progress in the upgrading of public
healthcare facilities
spread across the State. Through the
efforts of the State
34
Primary Healthcare Development Agency,
the Ministry
of Health and other State Government
agencies, 107
Primary Healthcare Facilities and 63
General Hospitals
have been fully functionalised to meet
up the basic
requirements of the Federal Ministry
of Health for the
implementation of the Basic Healthcare
Provision Fund.
51. Through the “Access to Finance”
programme, a
PPP initiative between the Delta State
Government,
Bank of Industry and the Pharmaccess
Foundation, to
revitalize and operationalize defunct
healthcare facilities
in rural communities, healthcare
services and the
benefits of the State health insurance
scheme have
been extended to remote communities in
Delta State
with significant benefits already
being recorded.
52. What this means is that a total of
395 public primary
and secondary healthcare facilities
including private
healthcare facilities were inspected
and accredited to
provide healthcare services under the
Delta State
Contributory Health Scheme. The
Commission
35
(DSCHC) is also implementing a
governance
framework, an organizational structure
and an elaborate
ICT enabled operations tool for the
scheme.
53. With the several initiatives
through Public Private
Partnerships, this administration is
addressing the
problem of “Brain Drain” in Nigeria by
turning it around
to a “Brain Gain” towards Delta State.
Private sector
participation in the Delta State
healthcare space is being
supported and encouraged with
favourable incentives
and a ready pool of patients under the
Delta State
Contributory Health Scheme.
54. We intend to have doctors and
other healthcare
service professionals, consulting at
the various primary
healthcare centres in Delta state on
full time or
scheduled visiting status to boost
quality healthcare
services across the State. The Delta
State University
Teaching Hospital Oghara, and the
Asaba Specialist
Hospital are currently being renovated
and upgraded for
specialized healthcare services that
will boost medical
36
tourism in Delta State. Meanwhile,
special intervention
programmes for HIV care, TB
management, birth control
activities and mental healthcare
services are being
planned for incorporation into the
State Health Insurance
programme for sustainability.
55. Let me also acknowledge the
invaluable
contributions of the 05 Initiative to healthcare
delivery in
the State. Headed by the Wife of the
Governor, the Non-
Government Organisation has
constructed and
equipped 12 Sickle Cell Clinics in the
State, including a
world class referral centre in Asaba.
These clinics will
boost healthcare services and other
necessary social
support for people living with the
Sickle Cell Disorder not
just in Delta State but from all over
the country.
56. The sum of N9.7 billion is
proposed for the health
sector in the 2020 fiscal year.
ENERGY
57. Mr. Speaker, the availability of
reliable power supply
is a critical input to production of
goods and services in
37
the economy. Availability of power
supply can also
contribute to the improved living
conditions of all
households, especially in the rural
areas. In this regard,
this Government has continued to
invest in power
generation and distribution in order
to support economic
growth, promote employment creation
and improve the
living standards of the citizens.
58. In our first tenure, we provided
electricity to more
towns and villages than the number we
met on ground.
We shall continue to improve the tempo
in order to
enhance power supply to reach more
towns and villages
in the State. The target of this
administration is to keep
intervening in the provision of
electricity infrastructure in
both the urban and rural communities
of the State to
ensure the well-being of our people
and promote socio-
economic activities. In the medium and
long term, the
Government will seek alternative means
of providing
steady and sustainable electricity
power supply to all
Deltans.
38
59. The sum of N3.6 billion is
proposed for the energy
sector in the 2020 fiscal year.
WATER RESOURCES
60. To boost service delivery in the
provision of potable
water in the State, Government has
proposed to spend
N2.5b in the 2020 fiscal year.
61. We have domesticated state of
emergency in the
water sector (WASH) as declared by the
Federal
Government. We have also set up an
inter-ministerial
steering committee on water sanitation
and hygiene to
ensure effective implementation of the
goals. The focal
point of the state of emergency is to
work towards
ending open defecation in the State in
no distant time.
AGRICULTURE
62. Our commitment to our farmers runs
deep. One of
the key elements of the
agriculture-based job and wealth
creation strategy of this
administration is the market-
oriented development of the commodity
value chains.
39
Within this context, the Delta State
Foods Export
Initiative was set up to link farmers
and processors to
domestic and export markets in order
to ensure better
prices and sustained higher incomes.
The initiative
started, on a pilot scale, with the
production, packaging,
branding, international certification
and successful
export of high quality garri to the
United Kingdom.
63. Through this pilot initiative,
this administration has
demonstrated that it is achievable to
reach high
standards of food quality and export
same to Nigeria
diaspora markets across the world.
Specifically, the
initiative has attained four
fundamental enablers of foods
export namely;
- the creation of food quality
assurance and verification
mechanisms along the cassava-garri
value chain;
- the establishment of food quality
testing laboratory;
- the establishment of
state-of-the-art garri packaging
factory at Issele-Uku; and
40
- the existence of diaspora off takers
of the high quality
garri.
64. The immense impacts of the foods
export project on
job and wealth creation along the
commodity value
chain is evidenced by the initial
direct and indirect
economic benefits and incentives to
cassava farmers,
processors and logistics operators.
65. In the 2020 fiscal year, we will
aim at consolidating
the success of the pilot initiative to
strengthen already
established systems and upscale foods
export. Efforts
will be directed to cover more cassava
processors,
improve training of value chain
operators, streamline the
cassava supply chain, expand market
off-take and
enhance capacity utilization at the
Issele-Uku packaging
factory.
66. The sum of N2.0 billion is
proposed for the
agricultural sector in the 2020 fiscal
year.
JOB CREATION
41
67. The faithful implementation of our
job creation
programmes in the last four years is
ensuring a stronger
and more resilient economy and better
living conditions
for Deltans. The impacts of these
programmes,
particularly the Skills Training and
entrepreneurship
Programme (STEP) and Youth
Agricultural
Entrepreneurs Programme (YAGEP), have
been felt by
various segments of Delta society –
unemployed youths,
workers, micro, small and medium
enterprises, Persons
with Disabilities (PwDs), farmers,
traders and so on.
68. One remarkable social impact of
the job creation
programme is the mind-set shift, among
youths, from
government (salaried) employment to
entrepreneurship
and self-employment. Through the
training and
reorientation modules of STEP and
YAGEP, the youths
are imbibing the principles of skills
acquisition and
entrepreneurship as a viable
employment option. They
are now looking beyond and outside
their academic
42
certificates for employment and
livelihoods, as owners
and managers of skills-based
enterprises.
69. The job creation programme is also
impacting
positively on the growth and
development of Micro,
Small and Medium Enterprises (MSMEs)
sector in the
state. By providing services as
training centres,
facilitators and mentors to the job
creation programme,
hundreds of small and medium
enterprises have been
stimulated and supported to upgrade
their technical,
entrepreneurial and managerial
capacities, increase
visibility/patronage and improve the
quality of their
services and achieve enterprise
development.
70. In line with the goal of
strengthening job and wealth
creation, efforts will be devoted in
the year 2020 towards
consolidating on the impacts already
achieved,
upscaling the coverage and
institutionalization. The sum
of N1.5 Billion is proposed for the
Job Creation Office in
the 2020 fiscal year.
43
CONCLUSION
71. As I stated at the beginning of
this presentation,
there are challenges ahead, some
domestic, some
international. The best we can do is
to prepare
ourselves against any future “shocks”
and their probable
impact on the performance of the economy.
The
reduced size of the 2020 budget
compared to last year’s
budget is evidence of our continued
commitment to
fiscal prudence.
72. Towards this end, at least 70% of
the provision from
the budget envelopes (capital limits)
are to fund the
relevant budget lines for:
(i) certified jobs already listed,
awaiting
payment;
(ii) certified jobs yet to be listed
for payment;
(iii) jobs executed awaiting
certification at the
MDAs;
(iv) contracts awarded which are
currently
being executed by the contractors.
44
73. The balance 30% is to be applied
to very critical,
essential and key capital projects
with measurable
socio-economic value. To support these
efforts at fiscal
prudence, we have intensified the
implementation of the
Integrated Payroll System across MDAs
to automate
personnel records and salaries’
payment process, with
the goal of eliminating ghost workers.
74. I am happy to report that the
credibility of our
Government has continued to attract
local and foreign
investors, and Delta ranks very high
on the Ease of
Doing Business index today. Going
forward, it is very
important that we strengthen the
partnership with the
Federal Government and continue to
support and
promote micro and small businesses to
expand the
economy.
75. Let me now take few minutes to
appreciate all the
officials who, and institutions which
worked tirelessly to
put this budget together.
Specifically, I thank the
Ministries of Economic Planning and
Finance, the Office
45
of the Accountant-General, the
Directorate of
Government House and Protocol, and
Chairman and
members of the Internal Revenue Board.
76. I also express my gratitude to the
Deputy
Governor, Deacon Kingsley Burutu
Otuaro, and the
other members of the State Executive
Council for their
zeal and dedication. As is often the
case, no Ministry,
Department or Agency got all that they
wanted. It is the
very nature of budgeting where needs
always exceed
available resources.
77. That notwithstanding, I solicit
the understanding and
support of all MDAs to continue to
cooperate with one
another for the development of a
Stronger Delta where
prosperity, peace and progress reign.
It is in that spirit of
unity, cooperation and collective
responsibility that we
will be able to successfully tackle
and overcome the
challenges that confront us now and in
the medium
term.
46
78. It is on this note, Mr Speaker,
that I present the
2020 Budget Proposals for debate and
passage by this
honourable House.
79. Thank you for your time and
attention.
80. God bless Delta State.
81. God bless us all.
Office of the Governor
Government House
Asaba
October 2019.
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