SPEECH BY THE GOVERNOR OF ADAMAWA STATE, HIS EXCELELENCY RT. HON. UMARU AHMADU FINTIRI ON THE OCCASION OF THE PRESENTATION OF THE 2020 APPROPRIATION BILL TO THE ADAMAWA STATE HOUSE OF ASSEMBLY ON TUESDAY 26th NOVEMBER, 2019
Mr. Speaker and our Honourable Members of the Adamawa State House of Assembly, Members of the fourth estate of the realm, distinguished guests, ladies and gentlemen.
It is with profound gratitude to God Almighty that I stand before this Honourable Assembly to present the Estimates of Revenue and Expenditure for the 2020 fiscal year before as enshrined in Section 121: subsection 1 and 2 of the 1999 Constitution of the Federal Republic of Nigeria as amended.
You may wish to note that the current 2019 Approved Budget was planned and anchored on the actualization of our Vision 20:2020 Perspective Development Plan and the Sustainable Millennium Development Goals towards Economic Development of the State. This Economic policy focus which is based on the Federal Government directives has now become the Principal and cardinal Economic Policy thrust Objective of this Administration to forge the State forward.
It is therefore in the light of this that the 2020-2022 Medium Term Expenditure Frame work (MTEF) has been formulated as a matter of Economic Plan and Policy road map that will enhance and promote faster Economic growth. By this we mean a short Term Financial Plan frame work of the State that is articulated in line with the above objective covering a period of three years. This short term plan is also meant to actualize the Perspective Plan of the State along our Country’s economic vision towards sustainable growth as obtainable in the Comity of Nations.
3. Honourable Members, the 2020 Appropriation Bill I am presenting to you today mark the first Budget of this Administration. Despite all difficulties and challenges that has befallen the State and the Nation at large within the last few years, we owe it a duty to thank God Almighty for sparing our lives to witness this day.
2019 BUDGET REVIEW
4. Mr. Speaker, Honourable Members, before I go into the detail presentation of the 2020 Proposed Annual Budget, it is however customary on Statutory occasions of this nature that a review of the performance of the current Approved Budget in terms of the Actual Revenue that accrued to the State and in particular on what they were expended on within the last three quarters of the financial year be made known to you, and indeed the entire State. This will mark our demonstration of transparency and accountability for our young stewardship in the State. This review as a matter of tradition is also meant to reflect and evaluate past performances, correct the shortfalls and consolidate on our successes in order to move the State forward.
5. It is on this note therefore, that I want to refresh your memory that this Honourable Assembly early this year approved the total sum of N244.729 Billion for the 2019 fiscal year to finance both Recurrent and Capital Development Programmes of the State. Out of this, the sum of N105.511 Billion which represents 43% of the total Approved Annual Budget Estimate was earmarked for Recurrent Services. While the balance of N139.217 Billion which represents 57% of the total Approved Annual Budget was earmarked to Service Capital Development Programmes and Services in the State for the fiscal year.
6. Out of the aforementioned total Approved Budget for the 2019 financial year, the State Government was able to realize the total sum of N79.519 Billion, which represent 32.49% of the total Annual Budget from all her Revenue Sources as at 30th September, 2019. The Breakdown of the total Revenue shows that N27.548 Billion was realised from Statutory Allocation, N9.022 Billion from Value Added Tax (VAT), N703 Million from Exchange Rate Difference, N2.062 Billion from share of proceeds from promissory Note, N33.365 Billion from Capital Receipts, and the balance of N6.816 Billion was realized from the Internally Generated Revenue sources of the State.
7. In the same vein, the total sum of N48.997 Billion was expended on the various Recurrent and Capital Development Expenditure profile Sources as at 30th September, 2019. The breakdown of this expenditure is made up of the sum of N18.938 Billion expended on Personnel Emolument, N12.047 Billon on Over Head Cost, and the sum of N10.937 Billion on consolidated Revenue Fund Charges. The balance of N7.073 Billion was expended on Capital Development Projects and Programmes in the State in the fiscal year.
2020 PROPOSED BUDGET ESTIMATE
8. Mr. Speaker, Honourable Members, this is the first Appropriation bill by this Administration to this Honourable House and the main focus is to foster economic growth of the state from its laudable programmes and projects. This is expedient so that it will impact positively on the socio- economic of our people in line with this policy objective and our mission towards the transformation of the State, that the 2020 Proposed Annual Budget has been carefully articulated, with the view to attaining faster economic development of the State. We have therefore christened it “Budget of Rebirth”.
9. Having acquainted you with the general performance of the current year’s Approved Budget and in consideration of all economic factors, I wish to humbly present a Total Sum of One Hundred Eighty Three Billion Three Hundred and Sixty Million Six Hundred and Ninety Nine Thousand Four Hundred and Eighty Five Naira (N183,360,699,485.00) as the 2020 Proposed Annual Budget towards the financing of both Recurrent and Capital Development Programmes in the State in the 2020 fiscal year for your kind consideration and passage into Law. The Budget is articulated on the current National Economic indicators of $55 per Barrel, 10.36% inflation rate N350 per $1 exchange rate and 3.16% GDP economic growth rate.
The projected oil price is based on the current oil price volatility in the world market which is 2.18 million barrels per day. Out of this total proposed Budget estimate, the sum of N85.935 Billion which represent 47% of the total proposed Annual Budget Estimate is being earmarked for the Recurrent Services of the State. The balance of N97.424 Billion which also represent 53% of the total proposed Budget is for Capital Development Programmes and Services in the State. On the other hand, the total Proposed 2020 Revenue of N183.360 Billion comprises; Statutory Allocation N42.63 Billion, VAT N18.10 Billion, Excess Crude N2 Billion and Refund from Paris Club N7.02 Billion. Others are; State share of Budget Support Fund from Federal Government N4.00 Billion, Internally Generated Revenue (IGR) N12.83 Billion, Capital Receipts N97.42 Billion and the balance of N17.72 Billion is from other miscellaneous sources from the Federal Government.
The 2020 expenditure Proposal are also as follows; Thirty Seven Billion Seven Hundred and Ninety Six Million Six Hundred and Seventeen Thousand One Hundred and Twenty Naira (N37,796,617,120.00) for Personnel cost and the sum of Twenty Nine Billion Four Hundred and Eighty Five Million Three Hundred and Seven Thousand Two Hundred and Fifty Five Naira (N29,485,307,255.00) for overhead cost. Others include Eighteen Billion Six Hundred and Fifty Three Million Seven Hundred and Eighty One Thousand Seven Hundred Naira (18,653,781,700.00) for Consolidated Revenue fund charges and the Ninety Seven Billion Four Hundred and Twenty Four Million Nine Hundred and Ninety Three Thousand Four Hundred and Ten Naira (97,424,993,410) for Capital Expenditure.
10. Although the Honourable Commissioner of Finance as usual will come up with the detailed breakdown of the 2020 Proposed Budget in a press briefing after this presentation, let me run through the sectoral proposed Capital Allocation of the various sub-sectors as contained in the proposed Budget: Six Billion Four Hundred and Seventy Million Six Hundred and Twenty Five Thousand Nine Hundred and Thirty Five Naira (N6,470,625,935.00) for the Administrative Sector while Forty Three Billion One Hundred and Fifty Eight Million Six Hundred and Three Thousand Nine Hundred and Sixty Four Naira (43,158,603,964.00) for the Economic Sector and the sum of Five Hundred and Thirty Two Million Three Hundred and Eighteen Thousand Nine Hundred Naira (N532,318,900.00) for Law and Justice. The Sum of Seventy Million Naira and Forty Seven Billion One Hundred and Ninety Three Million Four Hundred and Forty Four Thousand Six Hundred and Eleven Naira (N47,193,444,611.00) is estimated for Regional and Social Sectors respectively.
KEY PRIORITY AREAS OF GOVERNMENT IN TERMS OF 2020 CAPITAL EXPENDITURE
In line with this Administration’s 11 Point Developmental Agenda Policy, the State Government will accord topmost priority to the following sectors in the 2020 Fiscal Year Budget; Ministry of Education and Human Capital Development – Seventeen Billion Three Hundred and Fifteen Million Five Hundred Thousand Naira (N17,315,500,000.00), Ministry of Works and Energy Development – Sixteen Billion Two Hundred and Seventy Five Million Three Hundred Thousand Naira (16,275,300,000.00), Ministry of Health and Human Development – Ten Billion Naira (10,000,000,000.00). Other Ministries include Rural Infrastructure and Community Development – Seven Billion Five Hundred and Forty Six Million Two Hundred and Thirty Eight Thousand Four Hundred Naira (N7,546,238,400.00), the estimated sum of Two Billion Eight Hundred Million Naira (N2,800,000,000.00) for Housing and Urban Development, Two Billion Seven Hundred and Fifty One Million Fifty Thousand Naira (N2,751,050,000.00) for Agriculture, One Billion Seven Hundred and Thirty Eight Million Eight Hundred and Ninety Thousand Six Hundred and Fifty Five Naira (N1,738,890,655.00) as well as One Billion Two Hundred and Seventy Million Naira (N1,270,000,000.00) and One Billion Thirty Million Eight Hundred and Fifty Nine Thousand One Hundred and Eighty Two Naira (N1,030,859,182.00) for Youth and Sports and Mineral Resources Respectively.
FISCAL CONTROL POLICY MEASURES
11. The main objective of any good development plan lies squarely in the realization of its ultimate goal. With this in mind, this Administration intends to see to the full implementation of the 2020 Proposed Budget in the State through the following Fiscal Control Policy measures;
i. In line with the Vision 20:2030 National Perspectives Plan, as well as the Sustainable Development Goals we will continue to pursue the anticipated rapid economic growth of our dear State.
ii. Also in line with the Federal Government directives, the state will continue with the International Public Sector Accounting Standards (IPSAS) Programme which is in full implementation in the State.
iii. In continuation of budget Discipline, all MDAs will be encouraged to quote the Classification Code and the balance of vote of charge on their memos when requesting for release of funds, so as to enable our financial experts properly classify and track releases as appropriate.
iv. As usual Government will continue to train and equip the State Civil Servants with the required Skills that will enhance their desk functions towards better services delivery in the state.
v. Government among other measures will continue to ensure that some of the State’s untapped sources of Internally Generated Revenue are harnessed, and properly tapped towards the improvement of Revenue generation in the State within the fiscal year.
INTERNALLY GENERATED REVENUE
12. Against the backdrop of the falling oil prices in the International Market, which is seriously affecting our share of revenue from the Federation Account, it is imperative that we start laying emphasis on the none oil Revenue sectors of our economy as a matter of priority. This will definitely reduce our over dependence on the Federation Account. To actualize this responsibility, we definitely require synergy and collective action plan in identifying additional revenue sources, particularly the informal sector revenue along with other untapped ones that the State is not currently enjoying. As a result of this, our Board of Internal Revenue that is saddled with statutory responsibility will be fully supported to act in this direction for full results. Currently the State Government have fully commenced and gone live on the Treasury Single Account (TSA) programme through Remita which has started yielding fruitful results for the State. All the tertiary institutions and all MDAs as well as other government Agencies have also keyed into the State TSA programme. We are therefore appealing to all and sundry particularly our Financial Institutions to team up with the stakeholders towards the success of TSA in the State.
13. This Administration will, in the coming year, continue to strengthen the civil service to enable it play effective role in the development, implementation, monitoring of policies and programmes that will generate fresh air and fresh solutions for the benefit of our people. Specifically, government will give priority to welfare, capacity-building, security and productivity of civil servants by ensuring that their entitlements are paid regularly and as at when due. As you are all aware, this administration has commenced the immediate implementation of new minimum wage in the State with the Junior Cadre which will graduate to the Senior Cadre very soon. In the same vein, government will construct houses for civil servants to alleviate their pains in that sector. Plans have also reached advanced stage to commence the contributory Pension Scheme to address the perennial problems faced by workers on retirement.
14. Government had proposed to spend the sum of N97.424 Billion on Capital Projects and programmes in 2020. As earlier highlighted, priority attention is going to be on projects that have direct bearing on the lives of our people. Such projects include those in the following sectors; Education, Health, Agriculture, Water Supply, Works, Rural Infrastructure, etc.
15. Government will continue to accord this sub-sector priority attention because of our belief and conviction that investment in education is the bedrock to the development of other sector of the economy and the emancipation of its citizens from poverty, ignorance, and squalor. From the inception of this administration, with the pronouncement of Free Education, Government has taken off burden from Parents/Guardians and the issue of payment of tuition and all forms of fees in the entire Government Secondary Schools in the State. The only charges and burden in Schools now are those not meant for remittance in the government coffers. The on-going free feeding in all schools will be sustained and principals are expected to observe that all students in boarding schools are residing in the compound to instil discipline and close monitoring of academic activities. Let me categorically state that any principal found wanting in the administration of the new feeding programme will be disciplined appropriately. With these laudable policies on our Education System, along with other supportive programmes from the Federal Government, I am well convinced beyond reasonable doubt that our schools, teachers, and at most our students will soon change for better.
16. Honourable Members, I wish to also categorically inform you that a team of experts on education have been deployed all over the state to ascertain the stage of our schools infrastructure as well as the scope of their dilapidation for immediate attention by Government in the 2020 fiscal year. May I also at this juncture also inform you that as a matter of Government Policy and part of fulfilling our political obligation duly promised to our people, this Administration will establish two special schools per Senatorial Zone of the state by next year. This has become necessary in order to breed our feature professionals that the state can really be proud of with test of time. Similarly by 2021 all our junior boarding schools will be de-boarded in order to lessen burden on Government through the current free feeding programme in the state. On the order hand, Government will highly encourage full fledge boarding of all our Senior Secondary Schools, so as to instil discipline and the zeal of learning spirit on our students in the state.
17. The pathetic conditions of our hospitals and health centres has been giving us serious concern. Most of the buildings are an eyesore while the facilities and equipment have broken down. I wish to inform you that health is one of the 11 point agenda of this present Administration. The 2020 Proposed Budget is aimed at addressing the poor health indices of the State through the provision of Universal Health Coverage using the State Health Insurance. The Budget will also address the issue of infrastructural decay in our hospitals and will ensure that drugs are made available at all times in our hospitals. Health for all by year 2020 adequately captures the theme of our Health Budget.
18. Mr Speaker, meaningful development can only be achieved in a State like ours when there is vigorous and sustained investment in our rural agriculture. This is because agriculture will transform the rural economy and will reduced poverty level in the State. To articulate this dream therefore, Government will revitalise the extension service of Adamawa Agricultural Development Programme (AADP) and farming skills acquisition centres to improve on modern farming skills and use of improved seeds and translate it down to the farmers. Government will also ensure the availability of assorted fertilizers to farmers at subsidised rate to improve farmers output.
19. This administration is committed to providing adequate and portable drinking water to the entire people of the state. To improve rural water supply, the Yola and Mubi treatment plant will be rehabilitated and upgraded to produce 32 and 12.5 million litres per day (MLD) respectively and additional procurement of water chemicals is to be provided to match the increase in production. Under the European Union Water Supply and Sanitation Sector Reform Programme Phase III (EU-WSSSRP III) is intervening in Mubi South and Fufore Local Government covering Gyalla, Mubi water treatment plant, Fufore town, Malabu, Wuro Boki, Gurin and Dasin Hausa. This administration will pay the remaining counterpart fund so as to complete the additional work that was not earlier envisaged in the Bill of Engineering and Measurement Estimate (BEME).
Water Supply Sanitation and Hygiene (WASH) have been the priority of this administration through improvement of water supply and sanitation facilities, Sensitisation, advocacy and community mobilization on all WASH related activities and effective use of potable water to reduced drastically or eradicate water borne diseases in the State and its environs. Adamawa State Government is to declare State of Emergency on WASH sector in order to key into the Federal Government declaration and make Adamawa State Open Defecation Free (ODF) by 2025.
20. It is a known fact that Transportation is one of the key factors that derives economic development, hence the main reason why road constructions usually attracts keen interest of all Administrations. It is on this note therefore, that this Administration will also accord the Transport sector its top most priority in order to consolidate on the good legacies of the past Administrations.
Hon. Speaker and Members, you will agree with me that there are many on-going road constructions projects all over the State, some have been completed but with liabilities that are yet to be paid to the contractors that executed such projects. May I assure you all here that this Administration is really committed to complete some of these projects that are key to our populace, particularly those that have reached an advance stage of 80% – 95% completion stage. This has become highly necessary, as avoiding or abandoning them will lead to monumental lost to the State. This fiscal year, my Administration will also embark on awarding a few roads in the state capital, especially Bachure road, NEPA road, Lagos road, Philip Maken road, etc. This Township roads will be given top priority during the 2020 fiscal year due to their current deplorable conditions that have really become an eyesore before the general public. It has been also observed with pertinent that there is only one major road and highway linking Yola town and Jimeta metropolis that attracts heavy traffic during special events. As a result of this therefore, Nyibango – Yolde- Pate road will also be accorded top most priority for construction this fiscal year. This is necessary in other to assist in decongesting traffic on the only Jimeta – Yola Highway, as well as to serve as an alternative route.
Similarly, Yola the State Capital currently is becoming more urbanised with heavy traffic now that is becoming a cause of concern road users, hence the need to decongest traffic in the metropolis by constructing some fly-overs in three strategic areas in the state capital viz; Police roundabout, Mubi Round about and Total Junction. All these projects are part of the capital development proposed in the 2020 Budget.
In just 100 days in office, the state secretariat has now been connected to the National Grid to provide electricity for better performance and provide conducive working atmosphere. Also contractors handling Pella, Zhedinyi and Maiha Road have been mobilized back to site and work is ongoing.
RURAL INFRASTRUCTURE AND COMMUNITY DEVELOPMENT
21. It is my desire to see that all our communities are electrified and also have good access roads. To transform the desire to fruition. This administration is going to be committed to the development of our electrification and rural roads. Toungo Local Government, which happens to be the only Local Government out of 774 Local Government Areas headquarters in Nigeria that is not connected to the National Grid System. The people of Toungo will soon smile as mobilisation is captured in the 2020 Proposed Budget. Also over 145 Rural Communities abandoned electrification projects will soon be reactivated and the execution of 281.7Km of rural roads under ADRAMP-II. These has been flagged off, and the Project included in the 2020 Proposed Budget Estimates.
COMMERCE AND TOURISM
22. Government is determined to vigorously pursue the acceleration of commercial and industrial growth of the state. To this end, government is determined to complete the renovation and upgrade Yola International Hotel to a Five Star Hotel. Government will through Ministry of Mineral Resources embark on a feasibility study of various solid mineral deposits in the state to determine their commercial viability. The Guyuk Cement project would also be taken off fully with the engagement of Public Private Partnership.
RESTRUCTURING OF MINISTRIES.
23. As you are all aware, this Administration has approved the merger and creation of new ministries in the State, which are still twenty four (24) in number. Two of the newly created ministries comprises of; Ministry of Entrepreneurship Development, and the Ministry for Construction, Rehabilitation, Intervention and Humanitarian Services. The merger and creation of the new ministries carried by the State are born out of necessity. Duplication of functions and mandate on the current structures we met on ground, which is creating unnecessary conflict on the implementation of Government policies by Ministries and Departments was one of the reasons for mergers amongst others. We also created the Ministry of Entrepreneurship Development purely to develop special skills for our large unemployed youths in the State towards self-employment in blue collar jobs rather than wasting of time for white collar jobs that are not forth coming. On the second new Ministry, all of you are aware of the unfortunate situation that has befallen this State few years ago, where seven of our twenty one Local Government Areas were captured and occupied by insurgents. You may also wish to be aware that these insurgents were repelled. Thanks to our security personnel. now that there is relative peace and the displaced are gradually returning, Government is focused on reconstruction, rehabilitation, and reintegration of the returnees, hence the essence for the creation of the Ministry that will coordinate activities in this regard for the betterment of the state.
24. May I reiterate and appeal to the entire populace to maintain the existing peace in the State. To ensure security in the State, this administration provided operational vehicles for the security outfits code-named “Operation Farauta” . as we are all aware, security is everyone’s business, if you see something, say something.
24. I wish to sincerely express my profound appreciation and gratitude to you all, for the cordial relationship that exists between us in my short period in office. May this continue to wax stronger.
25. I want to also thank our entire Security outfits in the State for the maintenance of relative peace. We place on record the efforts of our Traditional and Religious Leaders who are in the forefront of preaching peaceful coexistence and tolerance in the entire State. May this peaceful and harmonious relationship continue to the glory of God.
26. I wish to appeal to my fellow politicians to abide by the rules of the game during the forthcoming Local Government elections. Let it not be a do or die affair, as in every game there must be winners and losers. In the same vein, I am making a clarion call to all our registered voters in the State to turn out en-mass in the coming Local Government election, by voting for the candidates of their choice without any fear or intimidation.
27. Honourable Speaker, Honourable Members, it is now my privilege and singular honour to present to you the State 2020 Proposed Appropriation Bill duly crescent as the “Budget of Rebirth”.
28. Finally, I wish you Merry Christmas and a happy and prosperous New Year in advance.
29. Thank you.
Long live Adamawa State;
Long live the Federal Republic of Nigeria.