Ekit State Budget 2015 Analysis by the Ministry of Budget and Economic Planning.

BUDGET 2015 ANALYSIS - MINISTRY OF BUDGET AND ECONOMIC PLANNING.

PRESENTATION OF THE DETAILED ANALYSIS OF THE YEAR 2015 BUDGET OF EKITI STATE TO THE PRESS AND THE GENERAL PUBLIC BY CHIEF TOYIN OJO

THE HONOURABLE COMMISSIONER FOR FINANCE AND ECONOMIC PLANNING ON TUESDAY, 3RD FEBRUARY,2015.

Members of the State Executive Council,

Permanent Secretaries,

General Managers/Administrative Secretaries,

Members of the Organised Private Sector (OPS),

Members of Civil Society Organizations,

Gentlemen of the Press,

Distinguished Ladies and Gentlemen,

It is a great pleasure and privilege to welcome you to this briefing session on the

2015 Budget of Ekiti State. You will recall that the Budget was presented to the Ekiti State

House of Assembly on Monday 15th December, 2014 and was passed into Law on Tuesday

30th December, 2014. His Excellency, Governor Peter Ayodele Fayose gave his assent to

the 2015 Appropriation Law on Thursday, 22nd January 2015 thus signifying the

effectiveness of the budget. The Budget however became operative on 1st January, 2015

2. As you would recall, the year 2015 budget was christened “BUDGET OF

REALITY” and the budget size as presented to the Ekiti State House of Assembly was

N80,784,032,867.28 made up of N48,817,201,122.86 or 60% for Recurrent

Expenditure and N31,956,831,744.42 or 40% for Capital Expenditure. After due

consideration, the House eventually passed a budget size of N80,784,032,867.28 only.

You will note that this is just a difference of N10 million from the budget size presented to

the House. I must state here that the House, as represented by the Chairman of the

Appropriation committee and other relevant officials were part of the Budget process from

inception up till the time of presentation to the house. This accounts for the quick passage

of the Budget with little or no amendment from the executive presentation.

3. In keeping with tradition, the Ministry of Budget and Economic Planning owes it a

duty to hold this briefing session to elaborate on the budget and exchange views with you

on the principles and philosophies underlying the programs and provide details of projects

proposed for implementation in 2015 Fiscal Year. It has also become customary to use


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the occasion of the Budget Analysis to provide insights into the Fiscal Policies and

programs of the State Government. This presentation shall not depart from this tradition.

REVIEW OF THE 2014 BUDGET:

4. Before going into the details of the 2015 Budget, it is necessary to review the

performance of the 2014 Budget. As you are all aware, this government came on board

on 16th October, 2014. We inherited a budget prepared and implemented, to a certain

extent, by the previous administration. The Budget size was N103,882,393,433.00 to

be sourced as follows:

TABLE i : SHOWING 2014 REVENUE PERFORMANCE/ % DISTRIBUTION

S/N DETAILS

APPROVED REVISED

BUDGET 2014 N

ACTUAL REVENUE JAN-DEC.,2014

N

%

Performance

1. Federal Allocation 32,387,403,753.00 34,409,670,309.05 106%

2. Internal Generated Revenue (including Parastatals)

20,150,908,908.00 7,608,800,070.50 38%

3. VAT 7,237,006,026.00 7,437,762,706.58 103%

4. Draw-Down-External

(Grants/Loans)

3,547,554,735.00 3,529,372,194.43 99%

5. MDG Conditional Grant Schemes 1,200,000,000.00 1,200,000,000.00 100%

6. Loan – Internal/Bond 16,067,387,000.00 6,604,212,740.48 41%

7. Reimbursement from Federal Government on Road Projects

5,807,613,000.00 - -

8. Ecological Fund 525,000,000.00 - -

9. Excess Crude Oil Proceeds + Budget Differential

2,881,940,864.00 553,800,104.69 20%

10. Others Sundry Incomes: (FAAC Augmentation, Refund from NNPC & Proceeds from Sales of

Fertilizer)

3,849,931,152.00 2,129,196,527.86 55%

11. Others Sundry Incomes (SURE – P)

2,727,995,964.00 2,338,282,255.08 86%

12. Others: Transfer from Prior Fiscal

Year (Unpaid Fund).

7,569,652,031.00 1,324,683,692.41 17%

Total 103,882,393,433.00 67,135,780,601.08 65%


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5. The table shows that a sum of N67,135,780,601.08 was the total actual revenue

realized as at 31st December, 2014. This depicts 65% performance. The Internally

Generated Revenue recorded 38% performance. The Receipts from Statutory Allocation

and VAT were in excess of the expected revenue from the two channels. The receipts from

Statutory Allocation stood at N34,409,670,309.05 representing 106% performance,

while that of Value Added Tax was N7,437,762,706.58 or 103% respectively. Excess

Crude Oil Proceeds + Budget Differential was N553,800,104.69 or 20% and Other

Sundry Income (FAAC augmentation, Refund from NNPC and Proceeds from Sales of

Fertilizer all together was N2,129,196,527.86 representing 55%.

EXPENDITURE

TABLE ii: SHOWING THE YEAR 2014 EXPENDITURE PERFORMANCE/ %

DISTRIBUTION

S/N DETAILS APPROVED REVISED

BUDGET 2013 N

ACTUAL EXPENDITURE JAN-DEC.2013

N

%

A Recurrent Expenditure

i. Personnel Cost

(Less Grants to Parastatals)

9,433,946,102.92 8,076,186,363.88 86%

ii. Other Charges 5,843,744,049.36 2,914,794,438.45 50%

iii. Recurrent Grants to

Parastatals

19,688,263,791.08 15,776,435,545.66 66%

iv. Transfer to Other

Funds

10,325,546,474.65 7,056,332,672.58 68%

v. Consolidated Revenue Fund Charges. This

includes Pension, Gratuities, Public Debt Charges, Loan

Repayment/Bank Charges

9,603,631,414.61 11,062,714,478.80 115%

Sub-Total 54,895,131,832.64 44,886,463,499.37 82%


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B. CAPITAL EXPENDITURE i. Economic Sector 22,896,220,290.33 9,132,462,506,73 40%

ii. Social Service Sector 8,617,495,257,52 2,059,810,579.80 24%

iii. Environmental Sector 2,364,107,034.07 291,274,294.95 12%

iv. Administrative Sector 11,178,457,035.20 3,055,177,331.79 27%

v. TOF Capital 3,930,981,984.18 1,150,547,131.33 29%

Sub-Total 48,987,261,601.30 15,689,271,844.27 32%

GRAND TOTAL 103,882,393,433.94 60,575,735,343.64 58%

6. The sum of N60, 575,735,343.64 was the actual expenditure achieved as at 31st

December, 2014. This represents 58% performance of the Budget. The actual Recurrent

Expenditure as at 31st December, 2014 was N44,886,463,499.37 or 82% of

N54,895,131,832.64 while Capital Expenditure was N15,689,271,844.27 or 32% of

N48,987,261,601.30.

EKITI STATE DEBT PROFILE

7. The Review of the 2014 Budget will not be complete without a mention of the State

Debt Profile. You are all aware that before and since the inception of this administration,

there have been claims and counterclaims about our state of indebtedness. Let me use

this occasion to lay the controversy to rest once and for all. As at December, 2014 when

the budget was presented to the State House of assembly, the debt figure was N69,

518,365,231.74. The details are as contained in the table below.

TABLE iii: EKITI STATE DEBT PROFILE S/N Nature of Debts Amount in Naira

i. Bonds Balance 26,250,204,976.00

ii. External Debt 6,260,949,265.00

iii. Commercial Loans 15,645,352,788.12 iv. Capital (Contracts/MDAs) 7,736,635,543.13

v. Outstanding Salary 3,786,290,489.83

vi. Gratuity 7,220,098,505.28

vii. Pension Arrears 2,618,833,664.38

viii. Total 69,518,365,231.74


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8. Ladies and Gentlemen, these are authenticated figures from the respective and

responsible agencies of government. As noted by His Excellency in his budget speech, the

foregoing is besides yet to be certified indebtedness on on-going works across MDAs and

institutions. We also have outstanding payments on miscellaneous expenses like Bank

Guarantees and Allowance to Corps Members running to hundreds of millions of Naira. By

the time these are collated, the sum total will be above the present figure. It is sad to

note that the state has been committed financially up to year 2020, which is even beyond

the life span of the present administration. Be that as it may, this government will not be

deterred from its task of developing this state by this cloudy financial outlook. We shall

surmount the obstacles and triumph gloriously. We have received the responsibility to

move Ekiti to the next level and we shall not shirk that responsibility on the altar of past

irresponsible behaviour of our immediate predecessors. We are not daunted by the

challenges, rather, we are confronting them headlong to deliver the dividends of

democracy to Ekiti people.

THE STATE OF THE NATION’S ECONOMY

9. We are all aware that Ekiti is an integral part of the Nigerian entity. Whatever

affects the whole affects the parts as well. It is no longer news that these are challenging

times for the nation’s economy. The indices and available data show that, the world

economy of which Nigeria is a major player is presently facing recession and there is

nothing to suggest any improvement in the immediate future. The downward turn in the

nation’s economy of which Petroleum contributes above 80% of the revenue cannot but

take its toll on Ekiti State since our economy depends largely on the monthly allocations

from the Federation Accounts. Any shocks that affect the accruals to the Federation

Account have direct debilitating effects on the economy of the State. The economy of the

State is presently not at its best, this is owing to the aforementioned and the huge debt

(as detailed above) inherited from the immediate past administration.


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MEASURES PUT IN PLACE TO BOOST THE ECONOMY OF THE STATE.

10. The present administration has put in place some measures aimed at cushioning

the impact of the drop in allocation from the Federation Account and the huge debt profile

of the State. This is in a bid to generate additional revenue to fund the 2015 budget.

RESTRUCTURING OF GOVERNMENT MDAs

11. In line with the focus of the budget, the dire financial position of the State and the

need to cut excessive government spending, the structure of governance has been

reduced from 36 MDAs to 14 Ministries and a few extra-ministerial Department. It is hoped

that, this singular measure will reduce spending and the saving to the state’s treasury shall

be channeled to develop the State economy. You will agree with me that, the multiple

effects on the economy cannot be overemphasized.

12. A full-fledged department has also been created in the Governor’s Office to fit into

the policy thrust of government aimed at further tackling poverty among our people at the

grassroots and its inherent debilitating consequences. The new Department is called

Stomach Infrastructure and will be charged with the responsibility of coordinating all

anti-poverty strategies of this administration (Grants, Soft loans, free household Items to

poorest of the poor in the State), all of which constitute major priorities in the year 2015

budget.

AGGRESSIVE REVENUE GENERATION.

13. Government will put in place all necessary machinery to generate more revenue

through the strengthening of Board of Internal Revenue. The autonomy of the Internal

Revenue Service is being strengthened to position it for aggressive revenue generation as

opposed to its present task of just collection. The IRS has been tasked to explore new

areas of revenue. The tax net will be extended to incorporate the informal sector while

other Agencies of Government shall be empowered to perform optimally. This Government

shall provide the necessary wherewithal to enable the IRS perform its duties with ease. To

this end, the sum of N147,000,000.00 has been earmarked to provide working tools for

the IRS. This is in addition to the sum of N525,000,000.00 Recurrent Grants to the Board.


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Furthermore, a high level committee has been set up to look at the Agricultural Sector

with a view to creating more revenue channels for the State.

14. REDUCTION OF MONTHLY RUNNING GRANTS TO MDAs Recently, the State

Government reduced the monthly running grants to MDAs by 60% as part of the fiscal

cautions to reduce its spending and save funds for capital projects.

COMMERCIAL LOANS DEFERMENT

15. The loan burden of the State Government is on the high side, and is a threat to the

day to day administration of the State. Hence, Government has succeeded in getting some

of our creditors to reschedule our loans. Government will start to pay some of these loans

in August 2015. This is to give us a breathing space and stabilize the State for

development projects. This however does not affect deductions made at source from our

FAAC allocations at Abuja.

THE STRUCTURE OF YEAR 2015 BUDGET

16. The focus of the 2015 budget is to grow the economy and empower the citizens

through the instrumentality of the 6 Cardinal Programmes of the present administration.

For the purpose of clarity, the programmes are as follows:

i. Empowerment of our people to enable them pursue and realise their aspirations in

their areas of core ability or competence with little or no inhibition;

ii. Development of Agriculture to ensure food security for domestic consumption and

also for export;

iii. Development of infrastructure in the provision of good roads, public buildings,

airport and extension of railway to our state;

iv. Restoration of the glory of Ekiti state in education, science and technology;

v. Provision of free healthcare services for children, pregnant women and the

physically challenged; and

vi. Security of lives and property.

17. To this end, government considers it as a deliberate policy to put together all

strategies geared towards direct grass root and community empowerment. Hence, the


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Budget is People Centered based on our reality. The preparation of the budget involved

wide consultations with Stakeholders. It is right to say that the 2015 budget reflects our

collective aspirations for accelerated development across all sectors of the economy. The

2015 budget process was also in conformity with the State’s Medium Term Expenditure

Frameworks (MTEF). Thus, the Budget Estimates started with Fiscal projections of

revenues for 2015 through 2017 using macro-economic assumptions of revenue with up to

99% confidence level. Consequently, the assumption of 99% confidence in revenue

generation guided the prioritization of the capital projects.

PRINCIPLES OF 2015 BUDGET

18. In specific terms, the principles of the 2015 budget are:

(i) The 2015 Budget is a “Budget of Reality” it shall lay the foundation for the

subsequent years of this administration

(ii) To get the State off the hold of huge debt, this Government will apply breaks on

fiscal expansion, reduce budget deficit and largely use the year 2015 budget for

financial prudence.

(iii) For fiscal security and sustainability, intensive focus on IGR is vital. Appropriate

criteria would be adopted to evaluate and prioritize Capital Projects that are

revenue generating in nature;

(iv) Government will continue the use of Public-Private Partnership (PPP) option in

ventures that are better handled by the private sector;

(v) The linkage between Budget and MTEF will be strengthened. Hence, relevant codes

have been generated in the budget platform and MDAs have aligned their projects

with the codes.

19. The year 2015 budget has been rightly christened the Budget of Reality. It is so in

the sense that it is a departure from the traditional way of loading the Budget document

with unrealistic projects and unachievable figures. We have undertaken a more pragmatic

approach at handling government business. Rather than the traditional historical and

incremental budget, what we have now is result based tied to actual projects and

programs of government. We have also taken cognizance of the actual performance of


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previous budgets and tried to present an achievable budget. Finally, as already mentioned,

we are not unaware of the downward trend in the nation’s economy occasioned by falling

oil prices and the devaluation of our National Currency. All these were factored together

in arriving at the realistic budget of N80,784,032,867.28 for the 2015 Fiscal Year as

against 2014 provision of N103,882,393,433 translating to 77.78% of the previous

year's budget.

OBJECTIVES OF THE 2015 BUDGET 20. Based on the foregoing, the objectives of the 2015 Budget include but are not

limited to the following:

i. Aggressive IGR drive;

ii. Prompt payment of workers salary and pensions to our retired senior citizens;

iii. Radical approach to reducing the level of poverty of the citizenry through provision

of conducive environment for job creation and stomach infrastructural facilities

iv. Improving on all on-going Capital Projects;

v. Effective supervision and monitoring of all government Capital Projects to enable

Government get value on fund expended on projects;

vi. Improvement in socio-economic infrastructure such as rural/urban roads,

rural/urban water supply and rural electrification;

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

Education

viii. Promotion of economic activities through support for Small and Medium Scale

Enterprises (SME);

ix. Putting in place appropriate policies that would enhance effective, efficient and well

motivated public service to enhance productivity and promotion of industrial peace

and harmony in the State;

x. Adherence to Due process through budget discipline and effective utilization of

public fund;


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xi. Increasing the effectiveness and functionality of all social services like improving the

quality of health care delivery, sound Education Policy and ICT driven economy;

xii. Development of Agriculture so as to ensure provision of enabling environment for

food security and the growth of agro-based industries with immense private sector

participation.

YEAR 2015 REVENUE PROJECTIONS

21. In order to keep the economy growing and restore the tempo of sustainable

development, we have proposed a Budget size of Eighty Billion, Seven Hundred and Eighty

Four Million, Thirty Two Thousand, Eight Hundred and Sixty Seven Naira and Twenty Eight

Kobo, (N80,784,032,867.28) for the year 2015 financial year. As already stated, this is

77.76% of the 2014 budget of N103.8billion. The size is informed by our desire to live

within our means and work with an achievable estimate rather than decorate the Budget

with unrealistic figures.

22. As shown in table iv below, 38% of the Budget would be funded by the revenue

from the Federal allocation while the internally generated revenue source is expected to

fund 11% of the Budget while other sources account for 51%.


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The table iv: showing the revenue forecast for the year 2015

S/N. SOURCES APPROVED ESTIMATES

2015 N

%

Distribution

i. Federal Allocation 30,948,303,542.35 38%

ii. Internal Generated Revenue (including Parastatals)

8,885,524,000.00 11%

iii. VAT 7,660,360,510.48 9%

iv. Draw-Down: External (Grants/Loans)

8,819,953,944.55 11%

v. MDGs Conditional Grants Schemes (State and Local

Governments)

1,374,000,000.00 2%

vi. Loan – Internal Loan/Bond 5,000,000,000.00 6%

vii. Grants from Federal Government (reimbursement on Federal

Road Projects handled by the State)

1,000,000,000.00 1%

viii. Ecological Fund 4,000,000,000.00 5%

x. Excess Crude Oil Proceeds +

Budget Differential

1,219,214,254.73 2%

xi. Sundry Incomes: (FAAC Augmentation, Refund from NNPC & Proceeds from

Sales of Fertilizer)

1,890,356,766.48 2%

xii. Others:Sundry Incomes (SURE – P)

2,562,874,321.55 3%

xi. Others: Transfer from Prior Fiscal Year

7,423,445,527.13 9%

Total 80, 784,032, 867.28 100%

23. From the above, a sum of Forty Three Billion, Sixty One Million, Eight Hundred and

Ninety Five Thousand and One Hundred Forty Naira and Eighty Six Kobo Only

(N43,061,895,140.86) is expected from the Federation Account, Value Added Tax,

FAAC Augmentation and SURE-P combined. This represents 52% of the total fund

expected to service the 2015 budget.

24. On Internally Generated Revenue, it is the expectation of the State Government to

achieve a target of Eight Billion, Eight Hundred and Eighty Five Million and Fifty Hundred


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Twenty Two Thousand Naira Only (N8,885,524,000.00) this fiscal year. This is about

11% of the total resources needed to finance 2015 Budget. All necessary machineries

would be put in place to achieve this target. The sum of Five Billion Naira

(N5,000,000,000.00) has been allocated to cater for any loan that may be necessary in

the course of the fiscal year. This represents 6% of the source of funding the 2015

Budget.

EXPENDITURE

25. Government Expenditure is made up of Recurrent and Capital Expenditure.

RECURRENT EXPENDITURE

26. A total sum of Forty Eight Billion, Eight Hundred and Seventeen Million, Two

Hundred and One Thousand and One Hundred and Twenty Two and Eighty Six Kobo.

(N48,817,201,122.86) has been earmarked for the recurrent expenditure in 2015 fiscal

year. This represents 60% of the total budget.

The table v: Recurrent Expenditure:

S/N EXPENDITURE HEAD

APPROVED ESTIMATES

2015 N

% OF TOTAL

EXPENDITURE

2015

i. Personnel Cost 8,613,473,668.45 11%

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

iii. Recurrent Grants to Parastatals and Tertiary Institutions

20,810,226,980.63 26%

iv. Transfer to Other Fund

(Recurrent)

6,278,316,369.03 8%

v. Consolidated Revenue Fund Charges

10,702,083,110.34 13%

TOTAL Recurrent Expenditure

N48,817,201,122.86 60%

HIGHLIGHTS OF SOME KEY RECURRENT EXPENDITURE

SALARIES AND SUBVENTIONS:

27. This Government will continue to accord priority to the regular and prompt payment

of salaries of workers. Therefore, a sum of Eight Billion, Six Hundred and Thirteen Million,

Four hundred and Seventy Three Thousand, Six Hundred and Sixty Eight Naira, Forty Five


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kobo (N8,613,473,668.45) has been earmarked for salaries of Civil servants and

political Office Holders. You will all note that since the inception of this Administration,

Salaries of workers are being paid as at when due. I make bold to say that we do not owe

any deductions and disbursements to loans bodies and Cooperative Societies as was the

case in the last Administration. We are also committed to the sustenance of our

Parastatals and Tertiary Institutions for accelerated growth and development. Hence,

allocations to key parastatals are as listed in table below;

TABLE v : ALLOCATION TO KEY PARASTATALS

S/N Receivers Subvention Amount (N)

1 Judiciary 1,128,081,321.13

2 College of Education 2,426,000,000.00

3 Ekiti State University 3,390,345,005.89

4 Teaching Service Commission 8,712,346,999.82

5 BSES 262,500,000.00

6 SUBEB 230,220,677.78

7 Agric Development Project 210,000,000.00

8 Water Corporation 352,928,299.04

9 University Teaching Hospital 2,501,841,358.53

10 Internal Revenue Service 525,000,000.00

28. The government has equally made provision for the following services in the 2015

budget:

Table vi: Priority services S/N NATURE OF SERVICES 2015 APPROVED ESTIMATE N

Capacity building for teachers (Secondary schools) 46,000,000.00

Scholarship Scheme 59,415,684.20

Grants to Secondary and Technical Schools 276,877,896.21

Capacity Building for Civil Servants 250,000,000.00

Grants to Samsung engineering Academy Students for

Computer

5,000,000.00

Feeding and Maintenance of Special Schools 59,472,800.00

Mr. Governor integrated Health Services Delivery 84, 928, 948.28

Social Security Scheme to Less Privileged Senior Citizens 200, 000,000.00

Payment of Students WAEC and NECO 201,503,500.00


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PENSIONS, GRATUITIES AND DEBT SERVICES 29. This Government is committed to the welfare of our senior citizens. We are not

ungrateful to these elderly ones who spent the prime of their lives in the service of their

fatherland. It is our determination to make life comfortable for them through prompt

payment of Pensions and Gratuities. A sum of N4.5billion has been earmarked for these

in the 2015 Budget. Finally on Recurrent expenditure, the Debt Burden inherited from the

previous administration shall continue to receive attention within the limits of available

resources. A sum of N4.689 billion has been set aside for Public Debt charges and Loans

repayments.

CAPITAL EXPENDITURE

30. A total sum of Thirty One Billion, Nine Hundred Sixty Six Million, Eight Hundred and

Thirty One Thousand, Seven Hundred and Forty Four Naira and Forty Two Kobo N31,

966,831,744.42k or 40% has been earmarked for the capital expenditure of

government in the 2015 fiscal year. This represents approximately 40% percent of the

total budget. The fund is distributed across sectors as shown in table vi below:

TABLE vi: CAPITAL EXPENDITURE PROJECTION S/N SECTORS APPROVED ESTIMATES

2015

N

% DISTRIBUTION

1. ECONOMIC SECTOR 10,918,144,770.16 34%

2. SOCIAL SERVICE

SECTOR

5,156,619,201.77

16%

3. ENVIRONMENTAL

SECTOR

4,597,700,000.00 14%

4. ADMINISTRATIVE

SECTOR

7,314,464,555.30 23%

TOF CAPITAL 3,979,903,217.19 13%

TOTAL 32,092,548,708.94 100%


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ECONOMIC SECTOR

S/N SECTORS AMOUNT (N) %

1. Agriculture and Rural

Development

1,465,596,000.00 4.57

2. Industrial Development 468,323,000.00 1.46

3. Tourism 50,000,000.00 0.2

4. Infrastructure 8,934,225,770.16 27.84

Economic Sector Sub Total 10,918,144,770.16 34%

SOCIAL SERVICE SECTOR

S/N SECTORS AMOUNT IN Naira %

1. Education 1,571,598,552.38 4.7

2. Health 2,501,520,649.39 7.8

3. Women Development, Youth 1,075,500,000.00 3.35

Social Service Sector Sub

Total

5,156,619,201.77

16%

ENVIRONMENTAL SECTOR

S/N SECTORS AMOUNT (N) %

1. Environmental Development 1,996,000,000.00 6.22

2. Lands / Urban / Physical Planning 2,601,700,000.00 8.1

Sub-Total: Environmental 4,597,700,000.00 14%

ADMINISTRATIVE SECTOR

S/N SECTOR AMOUNT (N) %

1. Administrative Sector 7,314,464,555.30 23%

2. TOF Capital 3,979,903,217.19 13%

GRAND TOTAL (CAPITAL) 32,092,548,708.94 100%


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ENVIRONMENTAL SECTOR.

31. In view of the enormous environmental problems which are occasioned by the

topography and climatic condition of the State, the present administration has earmarked

the sum of N4,597,700,000.00 which represents 14% of the Capital Budget. The focus

of government is to create a sustainable, safe, healthy, friendly, and aesthetic

environment with mitigating structures to combat ecological challenges for the promotion

of improved socio-economic welfare of Ekiti people. This is embedded in the following

policy thrusts;

i. To secure a qualitative environment adequate and conducive for good health and

well-being of the masses;

ii. To check and control flood and erosion problem in the State

iii. Complete on-going flood and erosion programmes

iv. To identify the State’s ecological and environmental problems and proffer solutions

and;

v. To de-silt blocked drains and culverts

32. The following projects have been slated for completion in the Environmental Sector

of the Budget in 2015 Fiscal year:

(i) Flood and Erosion Control works in critical

areas of Ekiti State: N1,050,000,000.00

(ii) Channelization/concrete lining of storm and

Natural water channels N300, 000,000.00

(iii) Purchase and installation of Waste Management

Tools and Waste to Wealth programs. N100, 000,000.00

(iv) Redevelopment of some markets in

Ado Ekiti and Ikere Ekiti N350, 000,000.00

(v) Land acquisition for market development

in Ado Ekiti, Ikere and other towns. N500, 000,000.00

(vi) Development of Residential estates in Agric

Olope Area, Ijero and Iworoko road. N295,000,000.00

(vii) Provision of Infrastructure in

existing and new estates. N200, 000,000.00


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HIGHLIGHTS OF KEY CAPITAL EXPENDITURE IN LINE WITH 6 CARDINAL PROGRAMMES

33. As already stated, this government hinges its developmental agenda on Six Cardinal

Programs. The 2015 Budget has therefore been structured to address each of these

programmes aimed at accelerated development of the state, as well as deliver the

dividends of democracy to the good people of Ekiti State. We shall now examine the

provisions of the budget for each segment of the six cardinal programmes.

EMPOWERMENT

34. This Government shall strive to provide a conducive environment for all Ekiti people

at home and in the Diaspora to thrive in their areas of calling. It shall rekindle hope and

restore the self-confidence that we are known for. Every Ekiti Person shall be assisted to

pursue and realize his or her aspiration in the area of his/her core ability or competence

and encouraged to develop to the fullest without any form of inhibition or limitation.

35. Government shall create an enabling environment and provide basic facilities for

various professions, businesses, vocations, skill acquisition and other forms of human

enterprise. We shall promote equal opportunities for women and support the physically

challenged to demonstrate that there is ability in disability. The Government plans to

spend Three Billion, Seventy Three Million and Five Hundred Thousand Naira Only

(N3,073,500,000.00) on this sector for the year 2015 fiscal year. The distribution is as

follows:

(i) Two billion Naira Micro and small credit scheme;

(ii) Construction and equipping of Funmi Olayinka Women Development and Resource

Centre (PPP);

(iii) Poverty alleviation and Empowerment (Stomach infrastructure) scheme;

(iv) Implementation and enforcement of Women and Child Development legislations;

(v) Renovation of rehabilitation Centers;

(vi) Establishment of modern markets in selected towns

(vii) Empowerment of farmers.


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DEVELOPMENT OF AGRICULTURE.

36. The main stay of our economy, outside of Federal Allocation is agriculture; hence,

this government shall ensure and encourage increased agricultural production towards

food security for local consumption and also for export.

The policy trust for agricultural development of the present administration is premised on

the following;

I. To expand the State’s capacity for irrigation farming for the purpose of empowering

farmers and making food available in the state round the year at affordable prices;

II. To empower Ekiti youths that are keenly interested in commercial agriculture as a

profitable venture;

III. Massive cocoa revamp programme to enable farmers replant their old cocoa

plantation and establish new ones;

IV. To revive the integrated poultry scheme at four designated centers in the State;

V. To provide basic rural infrastructure such as construction of rural farm roads,

drilling of motorized bore holes, hand dug well and the construction of bridges and

culverts for easy transportation of agricultural commodities from the place of

production to urban centers and;

VI. To increase support for community mobilization and sensitization activities in all the

nooks and crannies of the State

VII. To enhance the production of cash crops, particularly Cocoa and palm oil.

37. On the industrial development front, the emphasis is on agro-based projects as a

catalyst to employment generation through the encouragement of small/medium

enterprise such as cassava processing, rice milling, poultry feed mills, fruit and juice

factories etc. Government shall also provide farm equipment, storage facilities and soft

loans.


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38. Sequel to this, the total sum of One Billion, Four Hundred and Sixty Five Million,

Five Hundred and Ninety Six Thousand Naira Only (N1, 465,596,000.00) has been

allocated to key projects in Agricultural sector as listed below:

(i) Purchase of Tractors and implements

(ii) Land Bank development

(iii) Poultry production, construction and rehabilitation of Poultry farms

(iv) Rehabilitation of Livestock Centre, cattle market and abattoir

(v) Cocoa and Oil Palm seedlings production

(vi) Forestry Regeneration and establishment of Wood lot in 16 LGAs

(vii) Resuscitation of Farm Settlements

(viii) Establishment of Agricultural Commodity platform

(ix) Agricultural Extension services, and

(x) Rural infrastructure, (roads, bridges and boreholes).

INFRASTRUCTURAL DEVELOPMENT

39. The importance of infrastructural development cannot be over emphasized. Thus,

for effective functioning of the socio-economic apparatus of the State, this Government

shall ensure the provision of good and durable intra and inter-township roads. It shall also

encourage Local Government Councils to construct access roads to communities and

farmsteads. The State Government shall collaborate with the Federal Government towards

the realization of Federal Projects including the Federal Government Secretariat, the

Airport project, the extension of Rail line and also road construction and maintenance. We

shall ensure the rehabilitation of existing dams, in addition to the replacement of old and

damaged water pipes to ensure improved water supply to all communities. Provision of

enabling environment and partnership with private investors for affordable housing

schemes shall be vigorously pursued. A new Ministry of Public Utilities has just been

created to be the driving force of the state infrastructure revolution.

40. The sum of Eight Billion, Nine Hundred and Thirty Four Million, Two Hundred and

Twenty Five Thousand, Seven and Seventy Naira and Sixteen Kobo Only


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(N8,934,225,770.16) has been allocated to infrastructure development of the state in

the next fiscal year. This is as detailed below:

(i) Construction of Fly over (Overhead Bridge) at Ado Ekiti

(ii) Construction of Onala – Tinuola – Pettim Road, Ado Ekiti

(iii) Construction of DeHead – Bawa – Iyin Road, Ado Ekiti

(iv) Renovation of Buildings at the State secretariat

(v) Intercity and township roads

(vi) Consruction of Ewi Palace Pavilion

(vii) Completion of the State Pavilion

(viii) Construction of Iluomoba – Igbemo road

(ix) Construction of Ikere – Igbaraodo Road

(x) Construction of Ilupeju – Ire – Ijan Road

(xi) Dualization of Ado – Iyin – Igede Road, (phase 1)

(xii) Construction of 35 nos new boreholes in rural communities

(xiii) Expansion of Ero Water Scheme to increase capacity and coverage

(xiv) Construction of more water booster stations and extension of pipelines

(xv) Rehabilitation of major water schemes

(xvi) Rural electrification projects in Ile Ona, Igeede farm settlement, Aba Igbirra, Ilokun Waste Site, Eda ile, Aba Fatunla and others; and

(xvii) Purchase and installation of transformers to deserving communities.

EDUCATION, SCIENCE AND TECHNOLOGY.

41. The State is known for her prowess in education advancement. It is the intention of

this government to bring back the lost glory in Education that earned our state the

acronym “Fountain of Knowledge” in the past. This administration is committed to the

pursuance of policies aimed at improving on the present standard of attainment in

education. Hence, this Government will offer free and compulsory quality and


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qualitative education up to senior secondary school level. Teachers shall be

accorded their right of place as critical stakeholders in the Educational Development of our

State. Conducive working environment shall be provided for them through the provision of

appropriate working tools, training and other benefits. We shall ensure adequate funding

for all levels of education including the University and all other tertiary institutions in the

State. Our technical Colleges shall be strengthened for skill acquisition.

42. A lump sum of N20,846,960,633.98 has been allocated to take care of both

Recurrent and Capital Expenditure in all our educational institutions in 2015. The focus

of capital projects in educational institutions shall be on procurement of textbooks,

purchase of science equipments, renovation of dilapidated structures, hostels, laboratories,

and other utilities; perimeter fencing of some secondary and Primary Schools, Schools

Agriculture and Enterprise Scheme as well as capital releases to the tertiary institutions

and Technical Colleges.

43. The table below provides the breakdown of total allocation to the Education sector

in the 2015 budget:

(i) Salaries/Allowances to Education Agencies N834,015,000.00

(ii) Recurrent Grants to:

SUBEB N230,220,677.78

TSC N8,713,846,999.82 LIBRARY BOARD N14,836,058.19 EKSU N3,281,345,005.87

COLLEGE OF EDUCATION N2,426,000,000.00 CHST N329,302,973.66 EKSUTH N2,501,841,358.53

(iii) SCHOLARSHIP/BURSARY SCHEME N59,415,684.70

(iv) TOF EDUCATIONAL SERVICES N874,538,323.23

SUB -TOTAL N19,265,362,081.60 (v) CAPITAL ALLOCATION TO:

EDUCATION N1,571,598,552.38 GRAND TOTAL N20,846,960,633.98


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44. The total sum of N20,846,960,633.98 represents 25.8% of the entire budget

which is above the UNESCO benchmark. This is besides what will accrue to the state

Primary, Secondary & Tertiary Institutions from MDG, NPEC and ETF in the 2015 Budget

for which we have made provision for counterpart cash contribution.

HEALTH SERVICES

45. We believe that health is wealth knowing fully well that the wealth of a State is in

the state of her peoples’ health. Based on this, this government shall buy into the concept

of Universal Health Coverage (UHC) and pursue deliberate policies and programmes that

will make every Ekiti Man and Woman have access to health care services in the State.

This administration shall provide Free Health Care Services for children aged 0-

5, pregnant women and the physically challenged.

We shall provide functional equipment and adequate personnel at all levels of health care

facilities in the State in addition to rehabilitation of facilities in our hospitals and health

centres. The University Teaching Hospital shall be adequately funded and staffed

appropriately to offer quality and qualitative tertiary health care services to our people at

affordable prices. The State Government is also collaborating with the Federal Government

to actualize the National Health Insurance Scheme (NHIS) in Ekiti State. This is a

Partnership Programme aimed at the provision of insured Health Services to pregnant

mothers and children under 5 years of age to meet the MDGs 4 & 5 (Reducing Infant

Mortality and Improving Maternal Health).

46. The Government has allocated the sum of Two Billion, Five Hundred and One

Million, Five Hundred and Twenty Thousand, Six Hundred and Forty Nine Naira and Thirty

Nine Kobo Only (N2,501,520, 649.39). The distribution is as shown below:

(i) Completion and furnishing of Oba Adejugbe General Hospital N100m

(ii) Procurement of basic equipment, beds and mattresses in

20 secondary health institutions N450m

(iii) Ongoing renovation of 18 secondary facilities to meet


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essential systems and services package standard, N240m

(iv) Implementation of NHIS, N150m

(v) Allocation to EKSUTH, N450m

(vi) Allocation to Central Medical Stores, N80m

(vii) Allocation to Hospitals Management Board, N155m.

SECURITY

47. No meaningful development can take place in an atmosphere of insecurity, where

people sleep with one eye closed. It is in realization of this fact, that our government shall

provide adequate security for lives and property in Ekiti State. This administration shall

pro-actively collaborate with the Police and other Law enforcement Agencies and support

local vigilante groups to protect lives and property in the State. Our Government shall also

ensure the take-off of military formation in Ekiti State. I am happy to inform you that the

Federal Government had given us assurances on the take off of a battalion of the Nigerian

Army in Ekiti state in 2015. We are collaborating with the Federal authorities to ensure

that the promise becomes a reality this fiscal year. Meanwhile the State Government had

just set up Ekiti State Security Trust Fund in partnership with the Private sector. We are

collaborating with all stakeholders to provide assistance to security agencies operating in

Ekiti state. To this end, a number of state of the art security vehicles have been procured

for distribution to the police, Civil defence and the Department of State Services. We shall

continue to provide monthly financial support to the agencies to ensure their readiness to

combat any threat to the peace in Ekiti state.

GOVERNANCE AND PUBLIC SERVICE.

48. This administration appreciates transparent, accountable, honest, and participatory

leadership which are the tenets and fulcrum upon which democracy rotates. That is our

stand and promise to the good people of Ekiti State. We understand the critical role of the

Public Service as the engine room of Government. We shall therefore take appropriate

steps toward the restoration of the core values of professionalism, honesty, integrity,

accountability and probity. The ugly trend of politicization of the service shall be halted.


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The Civil Service shall be re-positioned to serve the interests of the public and be

re-directed as a key player in the socio-economic transformation of our state through

objective and dutiful implementation of Government development programmes. Priority

attention and resources shall be accorded to training and re-training of officers to attune

them with best practices in governance and service delivery.

49. The sum of Seven Billion, Three Hundred and Fifty Four Million, Four Hundred and

Sixty Four Thousand, Five Hundred and Fifty Five Naira and Thirty Kobo Only

(N7,314,464,555.30) has been budgeted for security, governance and public service for

the 2015 Fiscal Year. This sum shall be channeled towards the following projects among

others:

(i) Construction of new headquarters complex for the state Judiciary, Office of

the Auditor general for Local Governments, Local Government Service

Commission and Vehicle Inspection Office;

(ii) Procurement of Office furniture and equipment for use across the MDAs,

Legislature and the Judiciary;

(iii) Construction of Governor’s Lodge in Lagos and Liaison Office, Abuja;

(iv) Insurance of Government Assets;

(v) Logistics for Local Government Election;

(vi) MDG State and LG projects.

DEVELOPMENT PARTNERSHIP

50. Ladies and Gentlemen, you will agree with me that no nation or state can be an

Island to itself. The task of state or nation building requires the concerted effort of the

nationals and other external collaborators to ensure meaningful growth and sustainable

development. It is a known fact that the government of Ekiti State had been in

partnership with various Donor Agencies on various projects and programs. It is on record

that the present Ekiti State benefited immensely from the activities of Donor Agencies

partnering with the then Ondo State. At inception, the state inherited several projects

being sponsored by the World Bank, UNDP, European Union, UNICEF and ADB among

others. Today there is a plethora of projects and programs scattered across the length

and breadth of this state to which we owe a lot of gratitude to the Development Partners.


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51. It is however unfortunate that several of these projects are not performing as they

should. Many have been on hold due to the failure of the immediate past administration

to pay the required Government Counterpart Cash Contribution (GCCC). Recently, His

Excellency, the Governor of Ekiti State hosted a meeting of the Development Partners and

Donor Agencies in Ekiti State where he assured them of his government’s commitment to

seeing to the success of each and all assisted projects and programs. He promised to

make the issue of GCCC of prime importance in the 2015 Fiscal Year. As such, a lump

sum of N2,051,438,964.52 has been set aside for GCCC payments in the 2015 fiscal

year. This sum will cover our commitments in various projects likes:-

(i) FADAMA III Project (World Bank) (ii) New Rice for Africa,NERICA, (World Bank) (iii) Community & Social Development Project

(iv) HIV/Aids Project (World Bank) (v) Small Town Water Supply & Sanitation (Federal Ministry of Water Resources) (vi) National Urban Water Project (World Bank)

(vii) Water Supply & Sanitation Program (European Union) (viii) National Program for Food Security (FM Agric) (ix) Youth Empowerment and Social Support Operation (World Bank) (x) MDG State & Local Government Projects (FMG) and

(xi) Various UNDP and UNICEF Programmes

52. Ladies and Gentlemen, if we are able to fulfill our obligation to the Donor Agencies,

by paying the GCCC, the State shall draw down up to N10 billion worth of projects or in

cash to the state. This is addition and external to this Budget. In acknowledgement of the

importance of externally financed projects and in demonstration of his commitment to

them, HE had directed that the GCCC be projected for payment on a monthly basis.


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CONCLUSION

53. Distinguished Ladies and Gentlemen, the 2015 detailed budget analysis just

presented represents the plans, policies and programmes that this administration designed

to achieve its 6-Cardinal Programmes. I enjoin the press to join hands with the State

Government to educate and inform the people of the State adequately on what

Government has in stock for them. I also wish to reiterate the commitment of this

Government to the well being of all Ekiti citizens. We shall continue to strive towards the

rapid Social Economic Development of the state within the limits of our resources. Our aim

is to employ every weapon in our arsernal to combat the plague of under development in

all parts of the state while ensuring that every segment of the economy is activated for

optimum production. You will agree with me that the task ahead requires that all hands be

on deck in support of the government to carry development to all nooks and crannies of

the state. I therefore employ all Ekitis at home and in the Diaspora to continue to give

their support and cooperation to the government to enable it actualize it’s dream of rapid

transformation of our dear state.

54. Finally, I wish to thank you once again for your patience and to invite your

contributions, questions, comments and observations on the year 2015 budget analysis.

55. Thank you and God bless you all.

Date post:	15-Jul-2015
Category:	Government & Nonprofit
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Ekit State Budget 2015 Analysis by the Ministry of Budget and Economic Planning.

Government & Nonprofit