THE 2019 APPROPRIATION BILL, PRESENTED TO THE KWARA STATE HOUSE OF ASSEMBLY, BY HIS EXCELLENCY, ALHAJI (DR) ABDULFATAH AHMED, THE EXECUTIVE GOVERNOR OF KWARA STATE ON THURSDAY, 6TH DECEMBER, 2018.
1. Mr Speaker, Honourable Members of Kwara State House of Assembly, thank you for welcoming me into this hallowed chamber to present the 2019 Draft Appropriation for your kind consideration and passage, for the last time in the life of my administration.
2. As you are aware, the 2018 Budget was anchored on our desire to consolidate and sustain the significant achievements recorded by this administration in the previous years.
3. Mr Speaker, Honourable Members, I wish to note that the 2019 draft Budget is designed to focus on the successful completion of on-going projects and the effective implementation of programmes and projects which have a direct bearing the people’s wellbeing.
This direction will enable the Government to consolidate the gains of the past years in the provision of social amenities for our people firmly.
Furthermore, the 2019 Budget will only be partially implemented by this administration. Therefore, it is imperative that we put our revenue and expenditure on a sound footing to guarantee that the incoming administration takes off effectively.
4. Accordingly, 2019 Budget is premised on an improved internally generated revenue through land administration for sustainable economic growth and development. Our focus on increasing revenue is not to impose new taxes or levies, but rather to expand the tax as well as plug all revenue loopholes for efficiency and good governance.
5. The economic and fiscal environment in which the 2019 budget will be implemented will not be significantly different from that of the 2018 budget due to a generally uncertain economic environment with a predicted effect on unstable revenue profile.
On this note, we have made realistic revenue projections for smooth implementation of the 2019 budget.
REVIEW OF 2018 BUDGET
6. Mr Speaker, Honourable Members, permit me to give an overview of the performance of the 2018 Budget.
The 2018 Budget was principally designed to build a vibrant and robust economy and ensure that the citizens of Kwara State are prosperous.
7. In the 2018 fiscal year, a total budget size of One Hundred and Ninety Billion, Nine Hundred and Ninety-Seven Million, Four Hundred and Twenty-Five Thousand, Five Hundred and Seventy-One Naira only was approved by this noble house for the implementation of our programmes and projects.
However, in August 2018, the budget was revised downward to the sum of One Hundred and Fifty-six Billion, Forty-three Million, Three Hundred and Thirty-Nine Thousand, Seven Hundred and Ninety-Nine Naira only to reflect the scarcity of fund from all budgeted sources.
8. Mr Speaker, I have the pleasure to report that we made modest progress in the budget implementation of 2018 based on available financial resources. As of September 2018, the overall budget performance was 60.5 per cent. The Capital expenditure recorded 41.4 per cent while recurrent expenditure was 79.4 per cent. The highlights of some of our achievements in some of the key sub-sectors of the economy are as follows: –
Works and Transport
9. In the outgoing fiscal year, the state government recorded significant achievement in the construction, rehabilitation and maintenance of rural and urban roads. A total of sixteen road projects covering a total distance of 111.51 kilometres are at various stages of completion.
Some of these roads include: –
• Rehabilitation of Gaa-Akanbi – Agbabiaka road, Ilorin, Ilorin- South LGA;
• Construction of Egbejila–Asa Dam – Airport road, Ilorin West
• Construction of Arobadi Maigida road, Moro LGA;
• Construction of Ilesha Baruba-Gwanara road, Baruten LGA;
• Construction of Share-Oke-Ode road (Section 1) Ifelodun LGA;
• Rehabilitation of Share-Oke-Ode road (section II) Ifelodun LGA;
• Rehabilitation of Offa-Ipe road, Oyun LGA;
• Construction of Ilala bridge, Irepodun LGA; and
• Construction of Osi-Obbo-Aiyegunle, Ekiti LGA
10. Besides, the State government is intervening in some identified strategic federal roads of great importance to the state, to boost the socio-economic activities of the areas when completed. These roads include Kishi-Kaiama, Geri-Alimi Diamond underpass and the dualization of Kulende-UITH Oke-Ose Road.
11. In the area of road maintenance, we were able to reconstruct some of the failed box culverts, bridges and collapsed roads in Ilorin-East, Ilorin-West, Edu and Offa Local Government Areas of the State in the outgoing fiscal year.
12. The State government is also participating in the Federal Government’s initiative of opening up rural roads through the Rural Access and Agricultural Marketing Project (RAAMP) facilitated by World Bank and French development agency (Afd). The rural road accessibility scheme will not only allow for evacuation of agriculture output to urban centres for marketing purposes but also allow for the haulage of agricultural input from urban centres to the rural agrarian centres for improved agricultural production.
13. In the outgoing fiscal year, Three Hundred Million Naira was approved as the state counterpart fund and take-off grant for the project. Meanwhile, the state has reached an advanced stage in the prioritisation of 500 km of rural roads, following our fulfilment of the preliminary conditions of the agreement.
14. A total of Three Billion, Seven Hundred and Sixty-Four Million, Four Hundred and Twenty-One Thousand, Six Hundred and Seventeen Naira, Forty-Seven Kobo was expended on various capital projects of the sub-sector as at 30th September 2018.
15. This administration has taken significant steps to boost agricultural productivity in the state through the provision of access to credit facility to farmers.
In the 2018 financial year, the State government accessed and disbursed a total sum of Five Hundred Million Naira of 2,350 crop farmers in the state out of the approved One Billion Naira from Central Bank of Nigeria (CBN) under the Anchor Borrower Programme.
Also, the state government paid the sum of Twenty-One Million Naira as part-payment of State Counterpart Fund for Fadama III Additional Financing, where five hundred farmers benefitted.
16. The State government recorded tremendous success in the health sector in the outgoing fiscal year. Some of the achievements include: –
• Launching of Malaria free Kwara at both the State and Local Government levels.
• Distribution of 500 labour and delivery kits to the primary health care facilities through Saving One Million Lives Programme.
• Payment of the sum of Eight Million, Six Hundred and Thirteen Thousand, Nine Hundred and Thirteen Naira, Ten Kobo as counterpart fund for the 2018 National Measles Vaccination Campaign in the state where Kwara State was ranked third in the North Central Zone of Nigeria and ranked sixth in Nigeria.
• Procurement of medical equipment to some selected health facilities in the state, and
• Rehabilitation of some health facilities across the State including Ijara-Isin Primary Healthcare Centre
17. As part of our effort to ensure rural electrification across various communities in the state, and cater for the growing settlements across the state, the sum of Seven Million, Eight Hundred And Forty-Five Thousand, Eight Hundred And Fifty-Three Naira, Two Kobo was expended for procurement and installation of transformers in eight different locations in the state.
18. Some of our major roads across Ilorin metropolis benefitted from our street lighting programme which is also known as Light-Up Kwara (LUK) during the outgoing fiscal year. LUK has improved safety and security tremendously during the night, leading to an improvement in the night economy.
20. Owing to the importance of education to the overall development of the State, the government continued to accord the sub-sector the needed priority during the outgoing fiscal year.
A total sum of One Hundred and Nineteen Million, Eight Hundred and Twenty Thousand, Seven Hundred and Ten Naira was spent in the conduct and placement of pupils into JSS 1, Joint Mock and Basic Education Certificate Examination in the State.
21. Approval was also given to the Teaching Service Commission for the recruitment of 350 graduates in Subjects such as English Language, Mathematics, Physics and Chemistry while 1,500 teachers were also approved for recruitment by the Kwara State Universal Basic Education (SUBEB) for the basic education level.
22. Our tertiary institutions also received attention in the outgoing fiscal year.
For instance, Fifty-One Million, Nine Hundred and Thirty-Three Thousand, Five Hundred and Fourteen Naira only was committed to the accreditation programme at the College of Arabic and Islamic Legal Studies Ilorin.
Also, a significant level of construction work has been recorded at the three new Satellite campuses of Kwara State University at Osi, Ilesha-Baruba and Post Graduate School, Ilorin.
A total sum of Two Billion, One Hundred and Eighty Million, Nine Hundred and Sixteen Thousand, Six Hundred and Two Naira, Forty- Four Kobo had been released to the project contractors.
Sports and Youth Development
23. As part of the commitment to provide a conducive atmosphere for sports and youth development, a total sum of Thirteen Million, Nine Hundred and Sixty-Two Thousand Naira only was committed to the renovation of the auditorium at NYSC Camp and rehabilitation of hostel at Kwara Football Academy KFA during the outgoing fiscal year.
24. This administration’s commitment to close the clean water availability gaps in the State witnessed laudable achievement in the outgoing fiscal year.
The multi-billion-naira primary/secondary distribution pipe network project was completed and commissioned in November 2018. With the completion of this project, water supply distribution coverage in Ilorin metropolis has increased by 25 per cent to improve water supply to Ilorin metropolis. Similarly, the reconstruction of Share/Tsaragi waterworks was also completed. A total sum of Six Hundred and Forty Million Naira only was expended on improving water supply across the Ilorin metropolis during the year.
Housing and Urban Development
25. Significant progress in the Construction of Kwara State Land Administration Secretariat was recorded during the year in which a total sum of One Hundred and Twelve Million, Eight Hundred and Fifty-Three Thousand, Nine Hundred and Fifty-Nine Naira, Fifty- Eight Kobo was expended.
When completed, the Land Administration Secretariat will accommodate the Ministry of Housing & Urban Development, Office of the Surveyor General, Physical Planning and Development Authority and the Bureau of Land as a one-stop-shop for the administration of land and allied matters documentation and processing to enhance ease of doing business in the State for improved revenue generation.
General Public Service
26. In the outgoing year, the government continued the regular payment of salaries and all allowances of its workforce as well as training and retraining to improving quality service delivery to citizens.
Community and Social Development: –
29. This administration has made giant strides in the provision of rural infrastructural facilities to communities across the Sixteen Local Government Areas of the State through the Kwara State Community and Social Development Agency (KWCSDA).
30. In the outgoing financial year, the Agency approved and funded Seventy-Six Community Development Plans out of which Thirty-Two have been fully completed while Forty-Four are on-going. Meanwhile, 210 Micro projects were approved while 113 of these have been completed and put to use by benefiting communities.
31. In 2018, the sum of Two Hundred and Fifty-Six Million, One Hundred and Ninety-Two Thousand, One Hundred and Seventy-Three Naira, Forty-Seven Kobo was disbursed for the implementation of Community Development Investment across the Sixteen LGAs while Eight Million, Nine Hundred and Forty-Four Thousand, Five Hundred and One Naira, Twenty-Four Kobo was disbursed for the implementation of Vulnerable Support Grant.
Information and Communication
32. Significant strides were recorded in the communication and information sector in 2018.
I am pleased to report that the Kwara State Television is among the few stations in the country to have completed the digital switchover and is now available on two platforms. The station has also been modern digital broadcast equipment, vehicles and remodelled premises. The Herald Newspaper’s new building has been completed and will be commissioned soon while a new digital transmitter and studio equipment have been delivered to Midland FM. Radio Kwara has also be supplied with new kit in addition to the rehabilitation and furnishing of its current premises at GRA, Ilorin.
33. Mr Speaker, Honourable Members. I have outlined our modest achievements in the outgoing fiscal year to demonstrate what was attained with the limited resources available. Accordingly, the 2019 Budget proposal is formulated from the need to upscale socio-economic development of the state for the benefit of its people.
THE 2019 BUDGET OUTLOOK
34. Mr Speaker, Honourable Members, the overall objective of 2019 Budget is to consolidate on the gains of the past years and to ensure completion of all on-going projects across to ensure good welfare of the citizenry. To this end, the 2019 Budget is themed Budget of Consolidation and Prosperity to reflect our determination to strengthen our finances on a sustainable basis while delivering the benefits of the associated revenue reforms to the people.
Specifically, the objectives of the Budget include:
• Expanding the Internally Generated Revenue (IGR) capacity of the state through land administration and electronic collection for sustainable development;
• Creating an enabling environment for investors through improved infrastructural development;
• Developing human capital development through enhanced investment in education and health;
• Job and wealth creation through the promotion of
agricultural value chain and sustenance of human capital development in the areas of vocational and technical education.
• Enhancing prudent management of all human and material resources of the state for a consolidated economic recovery and sustained growth and development.
35. The 2019 budget proposal is hinged on Zero-Based Budgeting to ensure prudent utilisation of revenue. Our projections were based on the following underlying assumptions as adopted by the Federal Government.
• Oil price benchmark of US$60 per barrel;
• Oil production estimate of 2.3million barrels per day;
• Exchange Rate of ₦305/US$;
• Inflation Rate of 9.98 per cent.
36. In the light of the above fiscal assumptions and parameters, the proposed 2019 Budget size is One Hundred and Fifty-Seven Billion, Five Hundred and Four Million, Nine Hundred and Fifty-Two Thousand, Five Hundred and Sixty-One Naira only for the services of Kwara State Government in 2019 fiscal year.
This shows a marginal increase of One Billion, Four Hundred and Sixty-One Million, Six Hundred and Twelve Thousand, Seven Hundred and Sixty-Two Naira only or 1% compared to the 2018 Revised Budget.
37. Out of this Total Budget size, the sum of Seventy-Seven Billion, Seven Hundred and Twenty Million, Four Hundred and Seventy-Four Thousand, Seventy-Seven Naira only or 49% is for Recurrent Expenditure while the sum of Seventy-Nine Billion, Seven Hundred and Eighty-Four Million, Four Hundred and Seventy-Eight Thousand, Four Hundred and Eighty-Four Naira only or 51% is for Capital Expenditure.
Sources of Revenue
38. The primary sources of revenue available to the State Government for the proposed 2019 Budget are: –
a. Statutory Allocation: – This is the State’s share of collectable revenue from the Federation Account and is estimated at Forty-Nine Billion, Nine Hundred and Forty Million, Seven Hundred and Seventy-Nine Thousand, Six Hundred and Twenty Naira, only or 31.7% of the total revenue.
b. Value Added Tax: The estimated VAT receipt is Eleven Billion, Three Hundred and Eighty-Seven Million, One Hundred and Ten Thousand, Six Hundred Naira only or 7.2%.
c. Other Sundry Revenue: The estimated sundry revenue from the Federation Account is Two Billion, Eight Million, Eighty-Three Thousand, Eight Hundred and Ninety Naira only or 1.3%
d. Extra Expected Revenue: This is the State’s share of expected revenue refunds due to the state from the Federal Government and it is estimated at Twenty-Four Billion, Forty-One Million, Two Hundred and Twenty-Five Thousand, Three Hundred and Fifty Naira only or 15.3%.
e. Internally Generated Revenue (IGR): Estimated internally generated revenue is Thirty-Three Billion, Nine Hundred and Seventeen Million, Sixteen Thousand, Five Hundred and Eighteen Naira only or 21.5%.
f. Income from Other Sundry Internal Sources: This is estimated at Two Hundred and Fifty-Five Million, Two Hundred and Twenty-Seven Thousand, Nine Hundred and Thirty-Two Naira only or 0.2 %.
g. Capital Development Fund/Aid and Grants: This source is estimated at Thirty Billion, Nine Hundred and Fifty-Five Million, Five Hundred and Eight Thousand, Six Hundred and Forty-Nine Naira only or 19.6%.
h. Term Loan Facility from Financial Institutions: This is term loan facility augment revenue shortfall to finance the budget and is estimated at Five Billion Naira only or 3.2%.
39. The Total Recurrent Expenditure for the 2019 fiscal year is Seventy-Seven Billion, Seven Hundred and Twenty Million, Four Hundred and Seventy-Four Thousand, Seventy-Seven Naira.
The breakdown is as follows:
i. Personnel Cost: Fourteen Billion, Five Hundred and Sixty-Four Million, Five Hundred and Thirteen Thousand, Two Hundred and Thirty- Two Naira only or 18.7% of the total recurrent expenditure.
ii. Overhead Cost: Forty-Six Billion, Nine Hundred and Seventy-Eight Million, Five Hundred and Forty-Six Thousand, Three Hundred and Sixteen Naira only or 60.5% This includes subvention to Parastatals, support grants as well as tertiary institutions overhead.
iii. Recurrent Debt Service Charges: Seven Billion, Sixty-Two Million, Seven Hundred and Seventy-Three Thousand One Hundred and Ninety-Five Naira only or 9.1%
iv. Other Consolidated Revenue Fund Charges: Nine Billion, One Hundred and Fourteen Million, Six Hundred and Forty-One Thousand, Three Hundred and Thirty-Four Naira only or 11.7%.
40. The total Capital Expenditure with the transfer from recurrent budget surplus is estimated at Seventy-Nine Billion, Seven Hundred and Eighty-Four Million, Four Hundred and Seventy-Eight Thousand, Four Hundred and Eighty-Four Naira only.
41. Mr Speaker, Honourable members, the summary of the draft 2019 recurrent and capital allocation to each sector is as follows:
i. General Public Services: Thirty-Five Billion, Six Hundred and Twelve Million, Nine Hundred and Fifty-Five Thousand, Nine Hundred and Nine Naira only or 22.6% of the total budget.
ii. Public Order and Safety: -Three Billion, Three Hundred and Thirty Million, One Hundred and Fifty-seven Thousand, Five Hundred and Eight – Five Naira only or 2.1%
iii. Economic Affairs: Fifty-Four Billion, Five Hundred and Six Million, Three Hundred and Sixty-One Thousand, Five Hundred and Thirty-Three Naira only or 34.6 %
iv. Environmental Protection: One Billion, Two Hundred and Thirty-Five Million, Four Hundred and Forty-Six Thousand, Nine Hundred and Fifty-Eight Naira only or 0.8 %
v. Housing and Community Amenities: Three Billion, Four Hundred and Eighty-Five Million, Eight Hundred and Nineteen Thousand, One Hundred and Twenty-nine Naira only or 2.2 %
vi. Health: Twenty-Seven Billion, Five Hundred and Thirty-Four Million, Six Hundred and Thirty-Two Thousand, Six Hundred and Ninety-Seven Naira only or 17.5 %
vii. Recreation, Culture and Religion: Three Billion, Three Hundred and Thirty-Three Million, Four Hundred and Fifty-Eight Thousand, Six Hundred and Ninety-Four Naira only or 2.1 %.
viii. Education: Twenty-Eight Billion, Two Hundred and Fifty-Nine Million Eight Hundred and Forty-Four Thousand, Eight Hundred and Thirty-Three Naira only or 18%
ix. Social Protection: Two Hundred and Six Million, Two Hundred and Seventy-Five Thousand, Two Hundred and Twenty-Three Naira only or 0.1%
The sectoral allocation of 2019 Budget proposal shows that Economic affairs sector has the highest allocation of 34.6% of the total budget followed by the General Public Service Sector with 22.6% while Education and Health sectors have 18% and 17.5% respectively. This is an indication of our commitment to the priority sectors of this administration.
42. Let me at this juncture highlight some sectoral policies and programmes as contained in the 2019 Budget proposal.
ECONOMIC AFFAIRS SECTOR:
43. This administration will continue to lay the desired emphasis on this economic sub-sector to increase productivity and income of our farmers. The State government shall further boost agriculture in the 2019 fiscal year with credit support to registered farmers in the State, with a total sum of Five Hundred Million Naira for Crop and Livestock farmers through the CBN Anchor Borrower Programme.
44. In the 2019 fiscal year, efforts will be geared towards improving electricity power supply to various communities through the provision of transformers and harnessing multiple sources of renewable energy.
A total sum of One Billion, Nine Hundred and Fifty-Two Million, Five Hundred and Nine Thousand, Seven Hundred and Twenty –Two Naira only is earmarked to this sub-sector for all the priority capital projects in 2019 fiscal year.
Works and Transport
45. The State government will focus attention on the completion of all on-going road infrastructure projects across the State which are currently at various completion levels. A total sum of Fifteen Billion, Nine Hundred and Eighty-One Million, One Hundred and Sixty-two Thousand, One Hundred and Forty-One Naira only is allocated to capital projects in this sub-sector.
HOUSING AND COMMUNITY AMENITIES SECTOR:
Housing and Urban Development
46. The government will continue to bridge the housing deficit gap and ensure quality, affordable and accessible housing for Kwarans through Public Private Partnership (PPP).
In line with this policy, a total sum of Two Hundred and Twenty-Eight Million, Seven Hundred and Fifty-One Thousand, Three Hundred and Eighty Naira only was earmarked for capital projects in this sub-sector.
47. In the 2019 fiscal year, the State government intends to spend a total sum of Two Billion, One Hundred and Sixty-Eight Million, Twenty-Three Thousand, Eight Hundred and Fifty-Two Naira only for the expansion and maintenance of water supply infrastructure and services across the State. The government will embark on tertiary reticulation which is the final stage of the Ilorin water supply turn-around project. This phase involves the addition of 305km of the tertiary distribution network to the existing 138km in the state capital and will expand water supply distribution by over 200% when completed.
48. Also, about one hundred and fifty boreholes will be provided for our rural dwellers to complement rehabilitation of waterworks in the three senatorial districts of the state.
49. In 2019, we will continue to improve the quality of education at all levels through the provision of a conducive atmosphere for teaching and learning. The rehabilitation of 492 classrooms in public schools across all the three senatorial districts in the state will be given priority attention during the 2019 fiscal year. Furthermore, the government is committed to supporting our tertiary institutions through accreditation exercise and infrastructural development. A total sum of Nine Billion, Three Hundred and Seventy-Nine Million, Six Hundred and Nineteen Thousand, Six Hundred and Ninety-Three Naira only is allocated to this sector for capital projects.
50. In the 2019 fiscal year, the government will continue with the rehabilitation of public health facilities across the three senatorial districts of the state.
A total sum of Twenty-Three Billion, Two Hundred and Thirty Million, Seven Hundred and Ninety-Five Thousand, Eight Hundred and Seventy-Two Naira only is earmarked for the health sector.
51. Mr Speaker, distinguished Honourable Members, Ladies and Gentlemen; the 2019 Budget estimates are modest considering the prevailing economic situation in the country.
52. In the last seven and a half years, our administration’s “Programme of Shared Prosperity” has been vigorously pursued to deliver various people-focussed programmes and projects. The impact of these programmes is felt through infrastructural development, urban and rural roads construction and rehabilitation, water supply, electrification infrastructure, improved access to education and health care, human capital development as well as strengthening of the private sector economy.
53. We have the conviction that this administration elevated the state and placed it on a sustainable pedestal through institutional reforms that will give stability to the administration and governance of Kwara state in the years to come.
54. On this note, Mr Speaker, let me express my profound gratitude to this honourable house for the cooperation you have extended to my administration and the excellent working relationship we have had. Whenever the story of our administration is written, your names and the contributions will feature prominently. I remain eternally grateful for your support and understanding throughout this journey.
56. Finally, I would like to commend the good people of Kwara State for the steadfast support extended to this administration despite serious challenges. Of particular note in this regard in the great roles and contributions of our royal fathers, religious and community leaders that have ensured the maintenance of peace, law and order throughout the year.
I hereby solicit for continued support from all and sundry so that we can collectively move the state to the next level.
57. Thank you all for your time and attention. God bless you all.
Alhaji Abdulfatah Ahmed,
6th December 2018
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