1. The Right Honourable Speaker;
2. Principal Officers and Honourable Members of Nasarawa State House of Assembly.
It is with gratitude and a sense of responsibility that I present before this Honourable House, the 2023 Fiscal Appropriation Bill. This, as you are aware is the fourth time that I am privileged to perform this constitutional duty before this Hallowed Chamber.
2. Let me start by commending you the Right Honorable Speaker and this Honourable House for the expeditious action you always displayed each time the State’s appropriation bill is presented before you for consideration. This is a demonstration of our collective efforts to continue to provide good governance to the people of Nasarawa State. I enjoin us all to sustain this tempo for the benefit of all.
3. The Right Honourable Speaker, Honourable Members, it would be recalled that last year, I stood before you and presented the 2022 Budget tagged; Budget of Sustainable Transformation in compliance with section 121(1) of the Constitution of the Federal Republic of Nigeria 1999 (as Amended), which facilitated the implementation of policies and programmes of this Administration, aimed at sustaining our commitment towards the transformation of our dear State for socio-economic development.
4. As you may recall, we made a covenant to execute policies and programmes that have direct bearing on the lives of our people and transform the State into an industrial hub through our economic blueprint codenamed the Nasarawa Economic Development Strategy (NEDS). This has remained our commitment since we assumed office in 2019 in line with our principles of transparency, accountability, probity and prudent management of the limited resources accrued to the State.
5. Mr. Speaker, Honorable members you’re aware of the progress which we jointly achieved in the last 3 years. However, let me just briefly remind you on some of them as they affect all facets of human development.
6. It is instructive to state that we have recorded tremendous achievements in the implementation of the 2022 Budget. I am pleased to inform this Honourable House that on security, this Administration has sustained synergy with security agencies and remained consistent in the provision of working tools and logistics support to ensure the protection of lives and property of our people. This in addition to the provision of operational equipment to enhance effective coverage and quick response to security threats. I’m happy to confirm that the military super camps which we facilitated in their establishment at Kenyehu and Udege in Toto and Nasarawa Local Government Areas have been very effective in tackling security threats in those areas.
7. Keeping to our covenant on economy and investment, since we launched the NEDS document, we continued to attract investments and investors into our state, especially after we established the Nasarawa Investment Development Agency (NASIDA). We continue to see more interests on a daily basis.
8. Our commitment in the health sector for instance, has informed our decision to embark on a State wide medical outreach on the treatment of different ailments, including issuance of glasses and other medications. We have provided affordable healthcare services and infrastructure at tertiary, secondary and primary levels for the wellbeing of the people of Nasarawa State. Similarly, we have facilitated the establishment of the State Health Insurance Agency to make healthcare services accessible and affordable. Just yesterday we commissioned another state of the art research and diagnostics center at the Nasarawa state university in Keffi.
9. It is important to state that this Administration has committed enormous resources to the expansion of the Dalhatu Araf Specialist Hospital (DASH), Lafia which is aimed at facilitating its smooth transition to the Teaching Hospital. In addition, the Specialized Hospitals in Akwanga and Nasarawa have been fully completed, better equipped and handed over to the Hospitals Management Board for utilization.
10. You are aware that recently, Nasarawa State was identified and honoured with a national recognition in view of our effort in the fight against the COVID-19 virus and vaccination of our people by the National Taskforce Committee on COVID-19. This honour has further earned us an international recognition in the health sector when the Chatham House London and some Development Partners have already indicated interest to support our healthcare services for the wellbeing of the people.
12. We have also implemented the backlog of Promotions, including the settlement of salary arrears of the workers in the State from 2009- 2017. In the same vein, we continue to settle the backlog of gratuity and making sure that pensioners receive their full payment to improve their standard of living even after their meritorious service. Arrangement is on top gear to ensure that Promotions of officers from 2018 to date are carried out to avoid another accumulation of arrears on promotions in the State. We have also approved the allocation of some of the Housing Estates to deserving Civil Servants on owner-occupier basis after due certification and adherence to due process by the Office of the Head of the Civil Service while we continue to accord priority to the training and retraining of Civil Servants, as the major actors in the formulation and implementation of Government policies and programmes.
14. Mr. Speaker and Honourable Members, it is gratifying to state that this Administration has in addition to initiating new projects, completed almost all the inherited projects, which include the Lafia Airport, Shinge-Ricemill-Kilema road, General Hospital road, Mararaba and Ta’al Orange Market Site and Services Scheme at Mararaban-Gurku, Karu Local Government Area. We have so far constructed the 15.5km Asphalt Sisinbaki-Kwarra road, Gudi-Moroa and the 25km Mararaba-Udege roads. Similarly, we have constructed Al-makura street and Abuja Street roads. The dualization of Shendam-Akurba, as well as the construction of Burial Ground-Angwan Shalele roads have also reached appreciable level of completion. We have also reached more than 70% completion on Antau bridge and Keffi dualisation roads.
15. With your support, we have established the Nasarawa Rural Development Agency which has so far constructed the Ribi-Jangwa, Agwade-Shupe-Atabula-Obi, Shabu-Doka-Arugba-Lakio, Keana-Abuni and Kagbu A-Atsoko-Wana roads. I am happy to state that the re-construction of Obi-Assakio and Adudu-Azara-Wuse-Akiri roads are ongoing.
16. Mr. Speaker, honourable members, this Administration has accorded particular attention to the development of Smart City in Gurku-Kabusu Area and indeed other Public Private Partnership (PPP) initiatives especially in Karu Local Government Area, aimed at providing conducive accommodation for the large population not limited to Karu axis, but Nasarawa and other citizens of the country.
17. In our commitment to enhance maximum utilization of the transport sector, we have committed enormous resources for the construction of the Sani Abacha and Yahaya Sabo Bus Terminals in Karu and Lafia respectively owing to the derivable growth potentials abound in the areas and to create opportunities for transport efficiency and enhanced revenue generation.
18. In a related development, we have constructed Modern Market in Keffi, while those of Nasarawa-Eggon and Akwanga are nearing completion. I am happy to inform you that arrangements have been concluded to commence another phase of the construction of the Modern Markets in Toto, Nasarawa, Wamba, Doma and Awe Local Government Areas. Those contracts will be released by the end of this month In Shaa Allah.
19. Mr. Speaker, Honourable Members, in our quest to provide electrification project, this Administration has facilitated the completion and full take-off of the Akurba 330 Power Substation. We have also provided electricity and continue to instal transformers in selected communities and Solar Power Street Light in all the thirteen (13) Local Government Areas of the State.
20. Realizing the significance of education in our society, this Administration embarked on mass rehabilitation and fresh construction of classroom blocks in our primary and junior secondary schools across the State. This is believing that conducive environment enhances effective teaching and learning. We have also established additional secondary schools and open new Area Offices of Education to enhance the realization of our objectives in the education sector.
21. Similarly, we have formalized the appointment of the engaged 2,250 teachers and also recruited fresh 1,047 additional teachers in the State. We have also employed additional teaching and non-teaching staff in the State tertiary institutions, aimed at enhancing the educational development of our dear State. It is important to state that in our commitment to encourage Science and Technical Education, we have established the Faculties of Engineering and Medicine at the Nasarawa State University, Keffi. Just yesterday, the Chief Of Staff to the President, Prof Ibrahim Gambari commissioned the workshops for the faculty of engineering in Gudi.
22. Leveraging on our advantage as agrarian society with good climatic condition and soil texture, we have wooed different companies, such as Flour Mills of Nig. Plc., Azman Rice Mills and Farms Ltd, Dangote Sugar Refinery Plc and PANDAGRIC among others for agricultural production. Similarly, we have concluded arrangements with the Lower Benue Rivers Development Authority to access 500 hectares of land in Doma and 400 hectares in Tide for the production of rice and other crops in the State. This is intended to provide employment opportunities for our teeming youth. In the same vein, our Administration has been consistent in the procurement and distribution of fertilizers to our farmers to boost agricultural production.
23. You are aware that we have keyed into the National Livestock Transformation Plan of the Federal Government, aimed at transforming the agricultural sector to ensure sustainable food security and value-chain addition, as well as finding lasting solution to the incessant farmers/herders clashes. We have since commenced the work at the pilot site, Awe Grazing Reserve. The State is also keying into the Livestock Productivity and Resilience Support Project (L-PRESS) in order to generate employment for our teeming youth and provide for the establishment of Public Private Partnerships (PPP) across numerous value chains including Diary, Beef, Fish, Hides and Skin, as well as to create linkages, marketing and infrastructural development in the livestock subsector.
24. I need to state that, in our commitment to create wealth and alleviate poverty, we have facilitated the establishment of the Agricultural Machinery and Equipment Development Institute (AMEDI) and the National Agency for Science and Engineering Infrastructure (NASENI) Skill Development Centre in Lafia and Keffi respectively. They are aimed at transforming the agricultural sector into an industrial hub to ensure job creation, youth empowerment, skills acquisition and value addition.
25. As part of our deliberate efforts towards empowering our teeming youths and women in line with the posture of this Administration, we have established the Wing Commander Abdullahi Ibrahim Vocational and Skill Acquisition Centre to engage our youths in meaningful ventures with a view to create wealth, generate employment and alleviate poverty in the State. Let me remind the honourable house that we have handed over the institution to the ITF so as to ensure maximum utilization. As I speak to you training has since commenced and we are currently screening for another 2,000 students for the T-Max skill acquisition program at the same institution.
26. We have domesticated the Federal Government Cash Transfer Policy as Nasarawa State Cash Transfer Scheme, where beneficiaries receive the sum of N5,000 as stipend on monthly basis for a period of 3 years. This is to improve the living conditions of the poor and the vulnerable people in the State.
27. In our desire to ensure the protection and safety of children in the state, we have also domesticated the At-Risk Children Programme of the Federal Government. The State Ministry of Women Affairs and Social Development has concluded arrangement to engage youths to serve as facilitators of the programme. We have also keyed into the Nigeria for Women Project.
28. Mr. Speaker, Honourable Members, distinguished guests it is important to state that this Administration attaches relevance to the Traditional institution as the custodians of our cherished culture, values and traditions. This is why we have constituted the High Powered Committee on the Creation/Upgrade of Chiefdoms, Districts and Village Areas in the State, as well as resolving Chieftaincy and Territorial Disputes and other Related Matters. This is geared towards strengthening the traditional institutions and ensuring inclusiveness in the act of governance. We have also distributed befitting vehicles to our traditional rulers in order to enhance their operation. We will continue to support our Royal Fathers with the working tools in order for them to discharge their responsibilities. This, we believe will put our Royal Fathers on the right footing to play complementary security roles in the society.
REVIEW OF 2022 BUDGET IMPLEMENTATION
29. Mr. Speaker, honourable members of the State Assembly, the implementation of the 2022 “Budget of Sustainable Transformation” commenced on the 1st January, 2022.
30. The 2022 Budget was based on a benchmark oil price of 57 US Dollars per barrel, oil production output of 1.88 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day); an Exchange rate of N410.15 per US Dollar and a Projected GDP growth rate of 4.2% and 13% inflation rate.
31. As at 30th September, 2022, Nasarawa State Government’s Internally Generated Revenue (IGR) stood at N12.44Billion. Thus, revenue collection was 56% of our target, largely due to the underperformance of non-taxable revenue sources.
32. On expenditure, the sum of N59.63 billion had been spent by the end of 3rd quarter of 2022, out of the total appropriation of N110.850 Billion. Despite our revenue challenges, we have consistently met our debt service commitments, staff salaries and statutory transfers as and when due. Just last week Nasarawa state received 3 awards from the World Bank/FG SIFTAS on debt management, improvement on IGR and Transparency/Accountability.
33. Total recurrent expenditure from January to September 2022 was N45.96 Billion out of which N26.80Billion was for Salaries, Pensions and Overheads. A total of N4.64 Billion was spent on debt service obligations which represent 33.9% of our target during the period.
34. Furthermore, about N13.70Billion has been released to MDAs for capital expenditure as of the end of September 2022. I am pleased to inform you that we expect to fund MDAs’ capital budget to a reasonable extent by the end of the fiscal year 2022.
35. To further address structural problems in the economy and drive growth and development, capital releases thus far have been prioritised in favour of critical ongoing projects in the electrification, roads, agriculture, health and education sectors.
36. I am happy to state that the revenue collection and expenditure management reforms that we are implementing are yielding positive results, with recent significant improvements in internal revenue performance. However, while we continue to implement revenue administration reforms and improve our collection efficiency, we urgently need to find new ways of generating more revenue.
37. As we seek to improve Government revenues, we must also focus on the efficiency of utilization of our limited resources. Some of the critical steps that we are taking include the immediate implementation of additional measures towards reducing the cost of governance through the Bureau for Public Procurement. We are, however, mindful of the fact that reducing Government spending drastically can destabilize the act of governance. There is the need, therefore, to continue to implement programmes to support the most vulnerable segments of society.
38. In spite of the current global economic challenges, this Administration has continued to pursue policies, programmes and projects geared towards meeting the yearnings and aspirations of our people. Government has reviewed the Fiscal Responsibility and Public Procurement Laws towards strengthening due process and transparency in Government businesses.
HIGHLIGHTS OF THE YEAR 2022 BUDGET
39. The 2022 budget was focused on the following areas:
i. Completion of some ongoing projects;
ii. Enhancement of Internal Revenue Generation (IGR);
iii. Construction of Rural Feeder Roads Within the State;
iv. Construction of Bus Terminals at Karu and Lafia;
v. Creation of enabling environment for Public-Private Partnership (PPP);
vi. Establishment of Technological Hubs to Expand Citizen Knowledge;
vii. Step up Wealth Creation and Job Opportunities Through Youth and Human Economic Empowerment;
viii. Encouraging Science Education to Support Engineering, Medical and Technical skills;
ix. Continued collaboration and meeting obligations with Development Partners and strengthening governance and institutions in line with global best practices;
x. Agricultural Liberalization with emphasis on extension services, encouraging commercial farming and cottage industry for value chain;
xi. Solid minerals exploration and exploitation in collaboration with the Federal Government and partnership with investors as alternative sources of revenue generation;
xii. Increase in the number of qualified Teachers to enhance standard teacher-student ratio in the State.
PERFORMANCE OF THE 2022 BUDGET
40. Mr Speaker, Government envisaged revenue accruals from FAAC in the sum of N47.28 billion whereas (IGR) was anticipated in the sum of N26.18 billion and N34.60 billion as capital receipt. However, the sum of N44,403,158,941.12 was realised as Federal Allocation as at September, 2022, while N12,439,354,156.63 was realized as Internally Generated Revenue (IGR). Moreover, the actual total capital receipt (domestic and foreign) stood at N8,716,725,726.06.
41. Mr. Speaker, Honourable Members, during the period under review, the total sum of N68,068,765,134.89 was realized, representing 61.4%.
42. During the year, the Sum of N19,166,253,570.05 was spent on Overhead representing 50% of our target.
43. On the other hand, the sum of N13,668,604,785.53 was spent on Capital Projects.
44. The personnel segment of the budget gulped the sum of N26,796,741,164.80. Hence, the total expenditure stood at N59,631,599,520.38 representing 53.8% during the period under review.
THE 2023 FISCAL APPROPRIATION
45. The Rt. Hon. Speaker, Honourable Members, our Government’s focus in the 2023 Fiscal year is as follows:
i. Sustaining and Improving on general security and good governance.
ii. Completion of on-going projects
iii. Commitment to workers’ welfare through implementation of promotions up to date, as well as issuing some of the State’s Housing Units to State workers on owner-occupier basis.
iv. Creation of employment opportunities for women and youth in the State.
v. Provision of inputs and Supporting Agriculture as a way of boosting production, developing value chain and strengthening commercial ventures for a stable economy.
vi. Development of infrastructure through Public Private Partnership (PPP) as well as enhanced investment especially in the mining and housing sectors.
46. Consequently, let me reiterate that Government will not relent in its efforts towards strengthening internal control mechanisms in public financial management. Accordingly, Government will continue to review the monthly Overhead Cost and ensure strict monitoring of the activities of Ministries, Departments and Agencies (MDAs) in line with the fiscal expenditure framework of the Administration. This will further sustain our resolve for transparency and accountability in view of our limited resources. The adoption of the Central Billing System (CBS) will checkmate and promote fiscal discipline as this will block most of the financial leakages in our various operations.
47. We have restructured the Nasarawa State Debt Management Office to manage both our external and internal borrowings in accordance with standard practice. Likewise, Government established the Efficiency Unit within the Ministry of Finance so as to give credence to the implementation of the Appropriation Law.
48. Government envisaged an increase in the Statutory Revenue Allocation from the Federation Account and Internally Generated Revenue (IGR) as well as capital receipts which necessitated the increase in the 2023 budget. We are also mindful of the fact that we have not yet reached the desired peak of our IGR contribution to the State revenue. This Administration is determined to pursue vigorously all other sources of revenue due to government and collect same at a minimal cost. To achieve this objective, the Nasarawa State Board of Internal Revenue Service (BIRS) will be strengthened to operate at an optimum level in order to boost our IGR performance.
49. The following basic assumptions have been used as our guiding principles for the 2023 budget:
i. Government intends to pursue all revenue due to the State from various sources which include taxes, refunds, recoveries and other bank duties;
ii. This Administration is determined to achieve economic growth through prudent management of resources and investment in areas that have direct bearing on the lives of the citizenry. This will go a long way in sustaining the level of socio-economic development already achieved by this Administration.
2023 BUDGET PARAMETERS AND FISCAL ASSUMPTIONS
50. Distinguished Members of the State Assembly, the 2023-2025 Economic & Fiscal Update, Fiscal Strategy Paper (FSP) and Budget Policy Statement document sets out the parameters for the 2023 Budget as follows:
a. Oil price benchmark of 70 US Dollars per barrel;
b. Daily oil production estimate of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day);
c. Exchange rate of 435.57 Naira per US Dollar; and
d. Projected GDP growth rate of 3.75 percent and 17.16 percent inflation rate.
Anticipated Revenue Receipts in 2023
51. Mr. Speaker, Honourable Members, the total revenue of the 2023 estimate is in the sum of N148,958,122,525.05.
52. Government also intends to leverage on the available Grants and other capital receipts of N49,304,574,951.02 to balance up the deficit in the 2023 budget.
53. The budget framework shows the difference of N38,108,167,645.56 representing 34.28% increase against the 2022 budget. This rise in the budget is basically a result of full disclosure of support and other intervention from partners which hitherto were not made open until the coming of SFTAS which made it mandatory for partners to reveal all their contributions to the economy. Secondly, the expansion is to enable Government sustain its momentum of consolidating on the previous achievements and development in the State. Details of these amounts are contained in the estimate’s document which I shall lay before you.
54. The Rt. Hon. Speaker, Honourable Members, as you are aware, this is a Budget of Economic Consolidation and Transition. However, we intend to solidify the foundation laid by our Administration and the administration before us, since we came on board in 2019 by providing adequate funds to complete all ongoing projects within the ambit of our resources to improve on our developmental strides.
55. Accordingly, the budget is to be funded from the following anticipated revenue sources:
A. Opening Balance of N3.82 billion;
B. Federation Account:
i. Statutory Revenue Allocation of N35 billion;
ii. Value Added Tax (VAT) of N18.90 billion;
iii. Other Revenue from FAAC of N3.00 billion;
iv. Refund from NNPC of N0.300 billion;
v. Share of Forex Equalization of N0.100 billion;
vi. Paris club refund of N0.020 billion;
vii. Exchange Gain of N0.200 billion;
viii. Special Allocation of N0.100 billion;
ix. Refund of Excess Charges of N0.020 billion;
x. Distribution from Solid Minerals Revenue of N0.100 billion;
xi. Distribution of Non-Oil Revenues of N0.500 billion:
C. Internally Generated Revenue (IGR) of N37.60 billion;
D. Aid and Grants of N24.33 billion;
E. Capital Development Fund (Borrowings) of N24.97 billion.
EXPENDITURE ESTIMATE FOR THE YEAR 2023 BUDGET
Recurrent Expenditure
56. A total of N90,566,516,459.56 representing 60.80% of the total budget is earmarked for Recurrent Expenditure. This consists of Personnel Cost of N47.65 billion which is made up of Salaries, Consolidated fund, Pension, Gratuities and death benefits. Other Recurrent Cost of N42.92 billion is made up of Security and public debt service for both domestic and foreign loan repayment.
Capital Expenditure
57. The sum of N58,391,606,065.49 representing 39.20% of the total budget is set aside as Capital Expenditure for the year 2023.
2023 TOTAL BUDGET SIZE
58. The Rt. Hon. Speaker, Honourable Members, I am delighted to lay before you a total budget size of N148,958,122,525.05 for the 2023 fiscal year.
SECTORAL HIGHLIGHTS
59. The 2023 Budget for the various sectors is as follows:
a) Administrative Sector:
o Government House Administration – N4.67 billion
o Security/ Office of the SSG – N9.50 billion
o Legislation – N2.00 billion
o Information/Culture& Tourism – N2.71 billion
o Civil Service Matters – N1.41 billion
o Pension & Gratuity – N7.42 billion
Sub Total: – N27.71billion
b) Economic Sector:
o Agriculture & Water Resources – N11.32 billion
o Finance, Trade& Investment – N15.47 billion
o Infrastructure Development – N16.31 billion
o Science, Technology & Innovation – N1.96 billion
Sub Total: – N45.06 billion
c) Law & Justice Sector:
o State Judiciary – N3.36 billion
o Ministry of Justice – N896.13million
Sub Total: – N4.25 billion
d) Social Sector:
o Education – N37.43 billion
o Health – N18.61 billion
o Youth & Sports Development – N3.04 billion
o Women & Social Development – N1.02billion
o Environment, Community & Rural Development – N10.25 billion
Sub Total – N 70.35 billion
60. At this juncture the Rt. Hon. Speaker and Honourable Members of this Hallowed Chamber, without sounding immodest, I must state that this Budget is hinged upon our collective commitment to accelerate the pace of socio-economic development of our dear State. To achieve our target in this direction, we have a responsibility to be resolute in surmounting the challenges ahead of us through the execution of critical projects that will add value to the people of Nasarawa State. As a responsive Government, we must strengthen our synergy in the realization of our quest to leave a legacy that will take Nasarawa State to the promise land.
61. Let me use the opportunity of this presentation to appeal to our brothers and sisters who are contesting for positions from different political parties to play politics in accordance with the rule of engagement. I urge you to play politics without bitterness and to carry out campaigns in a manner that will enhance progress and development of our dear State. Peace in Nasarawa state is for the benefit of all. Lack of it will affect everyone.
62. Let me re-echo that as a people with common destiny, we cannot encourage politics of division, rivalry and thuggery in our dear State. I call on the people of Nasarawa State to see what this Administration has done in all spheres of human development as a yardstick for voting for the right candidates in the forthcoming general election for continuity and sustainable progress and development of Nasarawa State.
63. Finally, let me reassure the good people of Nasarawa State that the covenant we have taken to serve our people with sincerity, honesty and fear of God will continue to be our guiding principles. This is my covenant with you now and in the subsequent years. I assure you that we will do our best in 2023 and beyond.
64. On this note, Mr. Speaker, Honourable Members, it is my honour to lay before this honourable house the 2023 Appropriation Bill christened “Budget of Consolidation and Continuity” in the sum of N148,958,122,525.05 for your kind consideration and speedy passage.
65. I thank you most sincerely for your attention.
66. God bless Nasarawa State.
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