delta state budget 2012

8/2/2019 Delta State Budget 2012

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DELTA STATE BUDGET 2012: BUDGET FOR SUSTAINABLE

DEVELOPMENT

ADDRESS BY HIS EXCELLENCY, DR EMMANUEL EWETA UDUAGHAN,

GOVERNOR OF DELTA STATE, TO THE DELTA STATE HOUSE OF ASSEMBLY, ATTHE PRESENTATION OF THE YEAR 2012 BUDGET PROPOSALS, ON WEDNESDAY,14 DECEMBER, 2011

Rt. Hon. Speaker,Honourable Members,

Mr. Speaker, I stand before you and distinguished members of the Delta State House ofAssembly to present my fourth budget, since becoming the Governor. It is a budget we havechristened, Budget for sustainable development.

2. Mr. Speaker, we have very good reasons to envision that this budget is capable of continuingto deepen the successful initiatives to reduce poverty and promote the general welfare of our

people. Right from the beginning, the burning passion of this administration has been to initiatechanges not seen since the creation of the State and indeed in any other part of the country. It

began with the articulation of our vision to diversify the economy of the State otherwiseknown, as building Delta Without Oil. This is anchored on our three point agenda of Peace andSecurity, Human Capital and Infrastructure Development.

3. Mr. Speaker, it has been a tall order and a herculean undertaking. But I am proud we did notfalter. I am proud we kept the faith. Nearly five years into this tough and difficult journey, I see

the unfolding of our dreams before our very eyes. It started as a dream but now a Delta Statethat will in future depend on the creativity and resourcefulness of her people is graduallyemerging. We now have a Delta that is attractive enough for huge investments from across theworld. Today, we have a growing entrepreneurial class at different levels from micro to macro.In a few short years, some of these entrepreneurs will point to this time as their finest moment.A Delta that only the lazy and visionless persons are still waiting for manna to fall fromheaven. All these point to one thing: not long from now, we shall see a Delta whosedevelopment will not be tied to Federal Allocation for survival and progress.

4. When you look around you Mr. Speaker, the landscape of Delta State is changing. Morestrategic infrastructures are being built now than any time in our history. More people areenjoying liberal State support and benefits. Our cities are showing signs of rapid growth, lifeand vibrancy. We are very active in the nation and international scene promoting theopportunities and possibilities within Delta State. Our opinion and contribution is sought as avibrant sub-national State with a visionary and responsible government amongst other sub-national governments.

5. Mr. Speaker sir, Honourable members, I cannot fully catalogue the tangible and intangibleprogress that Delta State has made since we came on board. It is important to note that theExecutive branch cannot take the credit alone. We did not do it alone. It is due to our collectiveefforts. I must therefore, commend the House for being a worthy partner in advancing the

visions of this administration and Delta State as a whole.


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6. Among the important preconditions for economic growth in any society is appropriateinstitutional environment. These include in the main, the presence of political stability andsocial order. We will continue to strengthen our peace and security agenda using the tools ofadvocacy, promotion of criminal justice and conflict resolution mechanism to ensure that the

agenda of government is achieved.

7. Mr. Speaker sir, Honourable members, to make the great economic leap we desire and tocover the gap in funding, we must think outside the box, we must move away from our usual

pattern of making budgets and expecting adequate funding from the centre. Funding from themonthly Allocation cannot meet our needs. Funding from the monthly Allocation cannotsupport our strong determination to reduce poverty. We simply have to re-strategise andimprove our internally generated revenue without putting unbearable burden on our people. Wemust block areas of leakages in the system, we must minimize excessive expenditures. Wemust remain committed to the strategy of diversifying the economy of the State. We mustcontinue our huge investment in agriculture to create wealth and employment. We must

continue to improve the atmosphere of peace and security to attract commerce.

8. Taxation as you know, Mr. Speaker, is a credible source of revenue to finance infrastructure.We have taken positive steps in this direction, with the Delta State Internal RevenueConsolidation Law. Remarkably the implementation of the law has started to yield concreteresults with significant increase in the Internally Generated Revenue. I will highlight detailsduring the review of the 2011 budget performance in the course of this presentation. Wealthcreation is a single most important challenge of this administration. We must create morewealth and generate more employment for our increasing youth population through thediversification of the States economy. In this regard, we have put in place the necessaryinstitutional framework for the socio-economic and infrastructural development of the State forattracting private sector participation in key areas.

9. A key anchor of our diversification strategy is the deliberate stimulation of industrializationof the State. To this end, this administration has established three special economic zones viz,the Warri Industrial Business Park, the Koko Free Trade Zone and the ICT Park in Asaba. Theidea is to attract Foreign Investors to the State. Currently, oil revenue contributes 90% of theGDP in Delta State. It is our desire that by the time the special economic zones take full effect,the graph will change and private sector activities will contribute more to the wealth of the statethan oil. It is for this reason; I want to use this opportunity to once again call on Foreign andLocal Investors to take advantage of the Special Economic Zones being put in place by this

administration to invest in Delta State.

10. I have also taken further steps to harness the rich and human resources of Delta state bycomposing a first class state Economic Advisory Team drawn from the private sector workingwith top government officials, with Mr. Bismarck Rewane, as chairman, Mr. AlbertOkumagba, Mr. Nduka Obiagbena, Ms Evenly Oputu, Dr (Mrs) Ndidi Nnoli Edozien, the MDof Chevron and a host of others as members. We are counting on them to use their contacts,knowledge and expertise to enrich governments engagement strategy with the private sector.

11. So far, through our strategic partnership with NNPC representing the federal government,we have been able to attract major investors to the Koko Free Trade Zone. The investors

investment covers petrochemical, fertilizer and fertilizer blending plants, Liquefied PetroleumGas bottling and distribution plants and a Central Processing Facilities (CPF). These projects


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herald the takeoff of Mr. Presidents Gas Revolution Agenda. We sincerely thank him forsupporting the location of these investments in Delta state.12. There are also strong expressions of interest by local and foreign investors in the WarriIndustrial Business Park (WIBP). Even with these expressions of interests we are not resting onour oars to attract more investors to the State. In the special economic zones as positioned, we

have a strong catalyst for infrastructural development in energy, opportunities in Petro-chemicals, fertilizer production, many ancillary industries, agro-processing and agriculture.There will be a consequent supply chain with a spiral effect in employment generation andgrowth in small and medium scale enterprises.

13. Permit me, Mr. Speaker, Honourable members, to briefly review the Year 2011 Budget andafterwards present to you an outline of the Year 2012 budget proposals for the State.

COMPONENTS OF THE 2011 BUDGET

14. In the 2011 fiscal year, a budget of N361.90bn (three hundred and sixty-one billion, ninehundred million naira) was approved for the services of the State Government. The amount is

made up of a recurrent expenditure budget of N134.67bn (one hundred and thirty-four billion,sixty hundred and seventy million naira) and a capital budget of N227,22bn (two hundred andtwenty-seven billion, two hundred and twenty million naira). The profile of the 2011 budgetwas as follows:(A) REVENUES/N Revenue Profile Sources Approved 2011 Budget % Appropriationi Internally Generated Revenue 34,601,446,623 9.56ii Statutory Allocation Including Mineral Rev. Derivation 179,174,871,560 49.51iii Value Added Tax 9,927,756,200 2.74iv Other Capital Receipts 138,200,000,000 38.19Total 361,904,074,303 100(B) EXPENDITURES/N Expenditure Profile Approved 2011 Budget % AppropriationI Recurrent Expenditure 134,674,349,420 37.21Ii Capital Expenditure 227,229,724,963 62.79Total 361,904,074,303 100

YEAR 2011 REVENUE BUDGET PERFORMANCE

(JANUARY 2011 TO SEPTEMBER 2011)

15. The State Government, during the nine months of January to September, 2011, recorded atotal revenue performance of N169.89bn (one hundred and sixty-nine billion, eight hundred

and ninety million naira), representing an overall performance of 62.59% over expectedproportionate receipts ofN271.42bn. Out of this amount, the sum of N139.04bn (one hundredand thirty-nine billion, forty million naira) was received as Statutory Allocation from theFederation Account. The amount represents 103.47% performance of the proportionateestimate of N134.38bn (one hundred and thirty-four billion, three hundred and eighty millionnaira). On the other hand, the sum of N6.25bn (six billion, two hundred and fifty million naira)was recorded as receipts from Value Added Tax (VAT) out of the proportionate projectedreceipts of N7.44bn (seven hundred billion, four hundred and forty million naira),representing a

budget performance of 84.59%, while the sum of N24.54bn (twenty-four billion, five hundredand forty million naira) was recorded as Internally Generated Revenue (IGR) out of the

projected revenue of N25.95bn (twenty-five billion, nine hundred and fifty million naira),

representing a budget performance of 94.58%. As for Other Capital Revenues, nothing wasreceived during the period under review. However, proceeds from the Development Bond were


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received in the last quarter of this year, 2011. The breakdown of the revenue receipts fromindividual revenue sources is provided hereunder:S/N Sources Approved 2011 Budget Proportionate Budget Jan-Sept, 2011 Actual Revenue Jan- Sept, 2011 %Per

I Internally Generated Revenue 34,601,446,623 25,951,084,968 24,545,129,537 94.58Ii Statutory Allocation Including Mineral Rev.Derivation 179,174,871,560 134,381,153,670139,047,644,025 103.47iii Value Added Tax 9,927,756,200 7,445,817,150 6,298,516,378 84.59Sub total 223,704,074,383 167,778,055,788 169,891,289,939 101.26Iv Other Capital Receipts 138,200,000,000 103,650,000,000 - 0.00Total 361,904,074,383 271,428,055,788 169,891,289,939 62.59

16. The above revenue receipts represent a 12.85% increase on N150.54bn (one hundred andfifty billion, five hundred and forty million naira) recorded for the corresponding period ofJanuary to September, 2010. The area that was significantly affected is the Statutory Allocation

from which N115.62bn (one hundred and fifteen billion, six hundred and twenty million naira),was received in 2010 as against N139.047bn (one hundred and thirty-nine billion, forty-sevenmillion naira) received for the same period in 2011. It is important to note, however, that thereis an improvement in the collection of IGR in the State. The N24.54bn (twenty-four billion,five hundred and forty million naira) collected this year is N8.37bn higher than the sum of

N16.16bn (sixteen billion, one hundred and sixty million naira) collected for the same period in2010, this represents 51.84% increase. This perhaps, can be attributed to the conscientiouseffort of government owing to the passage of the revenue bill, which gave an autonomousstatus and other incentives to the State Board of Internal Revenue.

EXPENDITURE (JANUARY TO SEPTEMBER, 2011)

17. As for expenditure, a total sum of N146.025bn (one hundred and forty-six billion, twenty-five million naira) was spent during the period January September, 2011. Out of this amount,the sum of N87.96bn (eighty-seven billion, nine hundred and sixty million naira) was spent onrecurrent items as against a proportionate approved budget of N101.00bn (one hundred and one

billion naira) representing a budget performance of 87.07%. A total of N77.97bn(seventy-sevenbillion, nine hundred and seventy million naira) or 111.49% accounted for Personnel andOverhead costs as against the proportionate budget ofN69.934bn (sixty-nine billion, ninehundred and thirty-four million naira). The sum of N9.97bn (nine billion, nine hundred andseventy million naira) was spent on Pension and Gratuities, Statutory Salaries, 10% StatutoryAllocation to Local Government Councils, 2.5% Allocation to Local Government Pension

Fund as against the proportionate approved budget of N31,07bn (thirty-one billion naira) forthe period. This represents a performance of 32.10%.The breakdown is summarized below:Recurrent Expenditure Approved 2011 Budget Proportionate Budget Jan-Sept, 2011 ActualRevenue Jan - Sept, 2011 % Peri Personnel Costs 45,533,777,699 34,150,333,274 48,363,618,535 141.62ii Overhead Costs 47,712,864,840 35,784,648,630 29,609,141,738 82.74iii Con. Rev. Charge 41,427,706,881 31,070,780,161 9,973,985,157 32.10Total 134,674,349,420 101,005,762,065 87,946,745,430 87.07

18. The sum of N48.36bn (forty-eight billion, three hundred and sixty million naira) was spenton personnel cost against a proportionate budget ofN34.15bn (thirty-four billion, one hundred

and fifty million naira), representing a performance of 141.62%. This is an increase ofN17.98bn (seventeen billion, nine hundred and eighty million naira) or 59.20% over the sum of


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N30.37bn (thirty billion, three hundred and seventy million naira) spent on personnel cost forthe corresponding period in 2010. The increase in personnel cost is consequent on the upwardreview of wage bill of Delta State workforce. The deficit however, has been provided for in the2011 budget re-alignment.

19. The sum of N227.22bn (two hundred and twenty-seven billion, two hundred and twentymillion naira) was budgeted for Capital Expenditure. During the year, actual expenditure forthe period, January-September, 2011 was N58.07bn (fifty-eight billion naira) as a against the

proportionate budget figure ofN170.42bn (one hundred and seventy billion, four hundred andtwenty million naira), representing a budget performance of 34.08%. It is important to note thatout of the actual capital spending of N58.07bn (fifty-eight billion naira), DESOPADECaccounted for N21.85bn (twenty-one billion, eight hundred and fifty million naira). Thisrepresents 37.63% of the total actual capital spending. A breakdown of the Sectoral

performance for the period is as follows:Capital Expenditure Approved 2011 Budget Proportionate Budget Jan-Sept, 2011 ActualRevenue Jan - Sept, 2011 % Per

I Economic 68,642,401,721 51,481,801,291 15,529,900,939 30.17Ii Social 39,853,916,768 29,890,437,576 3,996,309,079 13.37Iii Environmental 61,082,444,392 45,811,833,294 9,482,005,362 20.70Iv General Administration 22,150,962,082 16,613,221,562 7,212,837,218 43.42V DESOPADEC 35,000,000,000 26,250,000,000 21,857,484,429 83.27Vi Contingency Fund 500,000,000 375,000,000 - 0.00Total 227,229,724,963 170,422,293,722 58,078,537,026 34.08

YEAR 2012 BUDGET

20. Mr. Speaker, distinguished members of the Delta State House of Assembly, I have justpresented to you a concise review of the implementation of the 2011 budget. I shall thereforeproceed immediately to present to you, the budget for the 2012 fiscal year.

21. Mr. Speaker, we have articulated a budget proposal of N383.39bn (three hundred andeighty-three billion, three hundred and ninety million naira) for the 2012 fiscal year. Theamount is made up of N169.82bn (one hundred and sixty-nine billion, eight hundred millionnaira) or 44.30% for Recurrent Expenditure and N213.57bn (two hundred and thirteen billion,five hundred and sixty-seven million naira) or 52.31% for Capital Expenditure.

22. The year 2012 budget proposal shows an aggregate increase of N21.08bn (twenty-onebillion naira) or 5.94% when compared to the year 2011 approved budget of N361.90bn (three

hundred and sixty-one billion, nine hundred million naira)

23. The 2012 budget is predicated on result oriented strategies. Government is moving awayfrom the usual budget practices of mere allocation of figures to a practical, structured, androbust approach that can sustain development. This Budget, therefore, is crafted to address the

problems that have confronted us over the years.

24. Mr. Speaker, Members of this Honourable House, the key objectives of Year 2012 Budgetwould be geared towards poverty reduction and empowerment of our people: we want toincrease access to quality healthcare, social service and infrastructure targeted towards theattainment of the Millennium Development Goals (MDGs); we want to enhance the value of

the public-private partnership in all aspects of economic and social development of the State;


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we want to foster the generation of more employment opportunities for our teeming youths; wewant strong and diversification of the economic base of the State.

SOURCES OF FUND

25. The main sources of funds for the 2012 budget are:

Sources Proposed Budget 2012 Percentage %I Internally Generated Revenue 51,447,050,581 13.42Ii Statutory Allocation Including Mineral Rev. Derivation 170,000,000,000 44.34Iii Value Added Tax 9,991,239,535 2.61Iv Other Capital Receipts 151,951,842,222 39.63Total 383,390,132,338 100.00

INTERNALLY GENERATED REVENUE

26. With the passage of the Delta State Internal Revenue Consolidation Bill 2009, the Board ofInternal Revenue, will continue to enjoy government support and will be strengthened toimprove its tax administration machinery. Some strategic measures we took to support the BIR

in revenue mobilization include granting it autonomy; reorganization of its management andadministrative structure; automation of the boards collection mechanism; maintaining a goodDatabase Management System (DBMS) and Tax Administration; collaborating and interfacingwith other MDAs connected with IGR operations in the State. It is as a result of these actions,that we are expecting the sum of N51.44bn (fifty-one billion, forty-four million naira) fromInternally Generated Revenue in 2012 as against the sum of N34.60bn (thirty-four billion, sixtymillion naira) under the 2011 budget. The IGR estimates for 2012 is higher than the 2011approved estimates by N16.84bn (sixteen billion, eight-four million naira) or 48.68%. Thisoptimism is derived from the measures we have put in place. I therefore sincerely appeal to allDeltans, corporate bodies and other residents in the State to faithfully meet their civicobligations to the State without coercion.

MONTHLY ALLOCATION

27. Monthly Allocation from the Federation Account is the principal source of revenue ofgovernment. We have proposed the sum of N170bn (one hundred and seventy billion naira) inthe 2012 draft budget as Statutory Allocation, against the 2011 figure of N179.10bn (onehundred and seventy-nine billion, one hundred million naira). The 2012 proposed estimates is

N9bn (nine billion naira) or 5.12 % lower than that of 2011.

OTHER CAPITAL RECEIPTS/MISCELLANEOUS

28. The sum of N151.95bn (one hundred and fifty-one billion, nine hundred and fifty million

naira) is proposed as Capital Receipts/Miscellaneous for 2012. This is an increase of N13.75bn(thirteen billion, seven hundred and fifty million naira) or 9.95% from N138.20bn (one hundredand thirty eight billion, two hundred million naira) approved for the 2011 budget. The secondtranche of the N100bn (one hundred billion naira) Development Bond amounting to N50bn(fifty billion naira) is being expected in 2012. Most of the projects funded with bond proceedsare expected to generate revenue directly and indirectly, and hence will increase IGR andsupport the servicing and repayment of the debt. We are hopeful that they will also attractForeign Direct Investments (FDI) which will also in turn increase our revenue base. We willexplore more credible ways of managing the deficits. A realistic approach is the re-alignmentof the budget within the year. This involves sourcing of funds within the fiscal year from less

performing budget heads to areas which require additional funds. This way, we will avoid the

usual borrowing from commercial banks. We are also counting on improved revenue receipts


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from our internally generated revenue sources and hopefully from the statutory allocations fromthe federation accounts.

RECURRENT EXPENDITURES

29. The total recurrent expenditure estimates for 2012 is N169.82bn (one hundred and sixty-

nine billion, eight hundred million naira) made up of personnel costs of N80.56bn (eightybillion, five hundred and sixty-four million naira) or 47.44% and overhead costs of N48.68bn(forty-eight billion, six hundred and eighty million naira) or 28.67%. The personnel costs

proposal for 2012 is higher than the 2011 approved personnel costs of N45.53bn (forty-fivebillion, five hundred and thirty-three million naira) by N33.03bn (thirty-three billion, thirtymillion naira) or 76.93%, while the overhead costs of N48.68bnproposal for 2012 is higher thanthe 2011 overhead costs of N47.71bn by N 976.23m or 2.05%. On the other hand, theConsolidated Revenue Fund Charges ofN40.56bn (forty billion, five hundred and sixty-ninemillion naira) proposal for 2012 is lower than the 2011 approved amount of N41.42bn (forty-one billion, four hundred and twenty-seven million naira) by N857.73m or 2.07%. Therecurrent expenditure estimates is summarized hereunder:

Items Proposed Budget 2012 Percentage %I Personnel Costs 80,564,125,769 47.44Ii Overhead Costs 48,689,103,852 28.67Iii Consolidated Revenue Fund Charges 40,569,967,479 23.89Total 169,823,197,100 100

30. Mr. Speaker, Members of this Honourable House, the increase in personnel costs ispredicated on payment of the minimum wage promised to workers by this administration. The2012 proposal has a 25% mark up of existing personnel costs actual projections for this year, toaccommodate promotions, conferment of incremental credits and other staff emoluments. Thisincrease as you will observe, has impacted hugely on the overall budget size.

CAPITAL EXPENDITURE ESTIMATES

31. The proposed capital expenditure estimates for 2012 is N213.56bn (two hundred andthirteen billion, five hundred and sixty-sixty million). The dominance of capital estimates overrecurrent in the past years demonstrates this administrations commitment towards substantialinfrastructural development throughout the State. The proposal is N13.66bn (thirteen billion,six hundred and sixty-two million) or 6.01% lower than the 2011 capital budget of N227.22bn(two hundred and twenty-seven billion, two hundred and twenty-nine million). The decrease isdue mainly to the desire of this administration to avoid over ambitious capital budget whichcannot be actualized. The sectoral breakdown of the capital expenditure estimates is as stated

hereunder:Sector Proposed Budget 2012 Percentage %I Economic 72,944,525,971 34.16Ii Social 45,310,654,218 21.22Iii Environmental 37,807,522,376 17.70Iv General Administration 22,004,232,673 10.30V Delta State Oil Producing Areas Dev. Commission 35,000,000,000 16.39Vi Contingency 500,000,000 0.23Total 213,566,935,238 100

SECTORAL HIGHLIGHTS32. Mr. Speaker, Sir, Honourable members of this House, let me now highlight some salient


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areas of the capital proposals.

AGRICULTURE

33. Currently employing over 60% of the working population, agriculture, in its totality,remains the core of our economy. It provides a source of livelihood in one form or the other for

a vast majority of our people. The focus of government therefore is to ensure food security,availability of raw materials for industries and full employment opportunities in the state.

34. To achieve this, we have undertaken various programmes/projects in food and tree cropsdevelopment, agricultural mechanization, agricultural credit, farm settlement scheme,communal farming, farm inputs distribution, livestock and fishery development, produceinspection, veterinary services, and the Youth Empowerment through Agricultural (YETA)

programmes. We are also involved in some Federal and development partner-supportedagricultural projects such as Root & Tuber Expansion Programme (RTEP), NationalProgramme on Food Security (NPFS), Third National Programme on Fadama (FADAMA III),and Community Based Natural Resources Management Programme (CBNRMP)

35. Mr. Speaker, this administration will also build on its partnership with the private sector inthe production and processing of cassava, including the cultivation of rice. In the overall

pursuit of increased production in the agricultural sector, extension services and agents will bestrengthened to be more productive. A key strategy for the 2012 fiscal year is the CassavaDevelopment Initiative Programme driven by the Federal Government. To demonstrate ourreadiness to be part of this initiative, we have allocated the sum of N2bn (two billion naira) forthe programme. We hope to be able to partner with the Private Sector to acquire starch andcassava flour plants.

INDUSTRY

36. Mr. Speaker, Honourable members, one of the viable instruments we are using to reducepoverty and create a vibrant culture of entrepreneurship is the Delta State Micro CreditProgramme. Through this Scheme, government is creating opportunities for our people whomight otherwise be unable to access such facility. The micro credit programme has threeattributes viz, empowering of the grassroots population, creating new wealth at that level andreducing unemployment in the productive age bracket. From inception in December, 2007 toMay 2011, a total of 85,776 persons comprising 54,531 women and 31,245 men wereempowered in various micro enterprises, this includes 411 persons under Delta Oceanic MicroCredit Scheme Account (DOMSA). This programme will continue to receive maximumattention in 2012. The sum of N1.5bn (one billion, five hundred million naira) is allocated to

the Micro Credit Scheme in the 2012 fiscal year.

37. Mr. Speaker, in the realization that the totality of the revenue receipts of government fromall sources is insufficient to provide the critical infrastructure necessary to drive businesses,various strategies are being pursued by government to attract public/private partnership (PPP)for infrastructure development of the State. One of such strategy is the Warri IndustrialBusiness Park (WIBP). Warri is on its way to being industrialized with the development of thisinitiative. The Park is conceived as one of the key strategies of government to diversify thestates economic base, attract new businesses and stimulate existing ones in the oil city. The

park is envisioned to reshape the economic potentials of Warri and the state at large, as it willfocus on the real sector of the economymanufacturing. It will be environmental friendly and

will provide a range of services for all types of enterprises on completion. We are in theprocess of awarding the first set of contracts to develop the infrastructure in this park.


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38. Clearly a successful industrial park with world class facilities will reverse capital outflowfrom the State and attract both foreign and local investments, we are therefore proposing thesum of N3.0bn (three billion naira) for the park in the year 2012 budget proposal.

TRANSPORTATION39. In line with our policy of diversifying the economy and providing a solid infrastructure andindustrial base for the State, we have in the last five years embarked on an integratedtransportation network comprising air, sea and road transport linkages to facilitate rapid socio-economic transformation and development.

40. The Asaba International Airport has come on stream with limited commercial flightfollowing the deployment of professional officers from NAMA, FAAN and NIMET. TheAirport, which has a runway of 3.4km long and 60m wide was conceived, with theunderstanding that stable and reliable means of transportation forms an essential component ofthe economic development of any country or state. Asaba forms a connector between western,

eastern and northern Nigeria hence this administration thought it expedient to provide aNigerian category A Airport in the State capital to cater for our air transportation needs. Itwill boost the socio-economic fortunes of the State as it will take advantage of the vast businessopportunities within the State and across the Niger as businessmen would be able to travel andhandle multiple business matters more effectively. Currently only two airlines are operatingscheduled flights daily on the Lagos and Abuja routes. Several other airlines have indicatedinterest in operating at the Airport. On completion, it will have a maximum take-off weight of630 metric tonnes vessels such as Boeing 747. Government has acquired additional land todevelop the Cargo Section which will comprise of a parallel taxiway to the runway, warehouse,customs, immigration and security terminal, a Tarmac to hold Boeing 747s, and heavy dutyequipment. The sum of N4.0bn (four billion naira) has been provided for its completion in thedraft year 2012 Budget.

41. Further on air transportation, the provision of a second Runway and expansion of theexisting one at Osubi Airport to enable it accommodate wide body aircrafts is anotherinfrastructural transformation project being embarked upon by this administration to tap intothe business opportunities in that axis. The project will take off fully in 2012. The sum of

N8.0bn (eight billion naira) is proposed for the Osubi Airport expansion.

42. On roads, government will continue with its commitments to provide an effective,sustainable road network that will enhance transportation and communication State wide. The

goal is to integrate the remote rural and riverine communities to urban centres and provideintegrated road projects throughout the state. Also government has embarked on theconstruction of roads to various agricultural centres in Umeh, Mbiri and Illah to facilitate theevacuation of agricultural products to areas where they are needed.

43. The State Government Mr. Speaker, has also embarked on the rehabilitation, reconstructionand upgrading of major roads in some towns in the State. Already, contracts for therehabilitation, reconstruction and upgrading of 15 roads in Asaba, the state capital have beenawarded while those of Warri, Ughelli, Sapele and Agbor will soon come on stream. The goalis to provide all season roads in the State.

44. In the 2012 fiscal year, government intends to increase the tempo of work on the variousroad dualization projects. To this end, Mr. Speaker, the sum ofN5.0bn (five billion naira) has


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been set aside for the Ughelli-Asaba Dual carriageway, N2.0bn (two billion naira) for theUgbenu Koko road, N3.94bn (three billion nine hundred and forty million naira) for theEffurun- Osubi-Eku Road, N5.0bn (five billion naira) for the TransWarri-Ode-Itsekiri Roadsand bridge among other crucial road projects. The Direct Labour Agency is being repositionedas an intervention agency to carry out sustained maintenance of roads throughout the state.

45. Riverine transportation will be given a further boost in the coming year as the Stategovernment will soon take delivery of 130 boats for Riverine Mass transit scheme. This is to

provide more comfortable, safe and improved movement of goods and persons within theriverine communities in the State. Also, government has built landing Jetties in some riverinecommunities to ensure safety and facilitate the evacuation of people and goods from thecommunities.

46. The government in 2012 will ensure further improvement of land transportation and safety.We will in this regard increase the installation of traffic signs on the highways and townshiproads across the State. We will ensure the construction and maintenance of traffic route

reflection billboards, solar powered traffic light/signals and road markings. These safetymeasures will reduce the incidence of road traffic accidents. Government will continue toimprove on the successes so far recorded in the Delta mass transportation scheme in which 500air-conditioned buses and taxi-cabs were acquired and distributed to ease movement of peopleand goods in the State. A total sum of N9.4bn (five billion, four hundred million naira) has

been provided for our mass transportation in 2012.

FINANCE AND INVESTMENT

47. Government will direct its investments efforts towards the generation of more employmentwhile encouraging direct private investments. The State government will do everything toensure the success of the Koko Export Processing Zone. The Free Trade Zone will boostentrepreneurship, because normal trade barriers such as tariff and quotas are eliminated and

bureaucratic requirement are reduced. It is expected that tax break and other additionalincentives will be part on the offering to stimulate real economic growth, which in turn, willcreate job opportunities, especially for our youths. We are proposing the sum of N2.0bn (two

billion naira) to facilitate the quick take-off of the FTZ project.

48. I am pleased to inform this distinguished House that Government is in partnership with aprivate investor, Delta Leisure Destination Park (DLDP) to develop a world class tourismresort in the state. The project is divided into two components. The first one, located at Oleri inUdu LGA is designed to have Five Star, Three Star Hotels and mini suites with big shopping

mall that will house branded designers shops. There is also a waterfall, cable rides, restaurantsof international cuisines, and world class recreational facilities. The other component of theproject is the Wildlife Park in Ogwashi-Uku. Both projects when completed will haveemployment capacity of 6,000 people as well as increase our internal revenue generation. Thesum of N1.2bn (one billion, two hundred million naira) is allocated to the DLDP as governmentinvestment into the project for the 2011 fiscal year, while the Private Investor has mobilized$240mEDUCATION

49. Education as we all know remains the bedrock of any development. To that extentqualitative education for Deltans will remain a major priority of this government. We willcontinue with systematic improvement of the educational infrastructure in the State. We will

continue to ensure regular rehabilitation and renovation of existing schools. This administrationhas commenced the construction of model schools across the State. No child will be denied


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access to fair opportunity to proper education, therefore this administration will continue withits policy of equitable distribution of teachers to the urban and rural/riverine areas. Althoughwe have returned some schools to their original owners - the Missionaries, we will not shirkfrom our responsibility of close inspection, monitoring and evaluation of teaching and learningin all schools in the State. To continue to improve the capacities of our teachers and also

provide adequate classrooms and learning facilities, a total sum of N13bn (thirteen billionnaira) is specially provided for the upgrade of Primary and Secondary schools in the state.

50. On higher education, we are aware of the educational needs of our people, this governmentwill continue to ensure the provision of efficient service delivery and quality assurance in theeducational system in the areas of teaching, learning and research. To address inadequateadmission into our schools, government will ensure that within the next five years, the carryingcapacity of State-owned tertiary institutions is increased to accommodate at least 25% of theyouths of Delta State, seeking admission. This, we will achieve through physical andinfrastructural development of State-owned campuses and institutions in order to sustain the

projected increase in the carrying capacity of the institutions. It is also important to mention

that the projects proposed for the 2012 fiscal year are strategic, being infrastructuralrequirements aimed at making the atmosphere in our tertiary education more clement. A totalsum of N7.50bn (seven billion, five hundred million naira) is allocated to Higher Education for2012 fiscal year.

HEALTH

51. Today, Mr. Speaker, we can proudly say that we have an outstanding record in ourhealthcare services, because of our belief that health is wealth. With this track record we willstrive to do more for our people. We will continue to pursue health reforms to ensure effectivehealthcare delivery, especially at the primary level to promote a healthy and productive

population. The main focus of our healthcare reforms going forward is to restructure the healthdelivery system by shifting emphasis from curative to preventive health care.

52. Our healthcare support to pregnant women and under five children have given them greathope, it has saved so many lives and eased burden on the vulnerable in our society. Morewomen now give birth in the same hospitals where they were registered due to increasingawareness of the programme. It is a legacy to our people which they cherish so much. In thisregard, Government will intensify effort to equip existing hospitals and Primary Health Carecentres to deliver more efficient services.

53. The Delta State Teaching Hospital at Oghara is fully operational. The first batch of medical

students trained at the Hospital has graduated. The Teaching Hospital was planned to become amodel learning institution for all cadres of the health professionals and as a referral centre perexcellence within the country. It is, I am happy to say, a wonderful edifice we should all be

proud of. At present, the institution has in its management professionals from within andoutside the country. A total sum of N3.00bn (three billion naira) is allocated to the Health sub-sector in the 2011 budget.

ENERGY

54. Mr. Speaker, in keeping with our set objectives of realizing our goal of diversifying theState economy and the three-point agenda that targets the socio-economic and industrialtransformation of the State, our emphasis in the energy sector will remain robust, because

stable power supply is extremely essential if our programmes are to succeed.


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55. In this connection, this administration will continue to give priority attention to thecompletion of on-going power generation, transmission and distribution projects. We willcontinue to fund the operation and maintenance of generator and solar powered streetlights thathave contributed immensely to the overall security situation in the State in addition to

enhancing social/commercial activities in our major cities and towns. This administration isdetermined to collaborate with other States in the region to acquire the unbundled/privatizedPHCN assets, as soon as the details are worked out.

56. Although stable power supply remains a national challenge, we have undertaken the toughdecision to setup our own independent power plan. We have to do this considering that theState gets no more than 108 megawatts of electricity from PHCN leaving out a suppressed loaddemand of about 1000 megawatts. Delta IPP which, was embarked upon in 2009 has attained areasonable landmark. Most of the equipment for the project has been procured and awaitingdelivery. The sum of N4bn (four billion naira) is provided in the 2011 proposed budgetestimates for the IPP project.

ENVIRONMENT

57. Since assuming office this administration has taken a leading role in promoting measures tocombat climate change and environmental degradation. Our collaboration with several globalorganizations, institutions and sub-national governments have secured us recognition andstrategic partnership as a climate friendly State committed to promoting environmentallysustainable development.

58. One of the main successes of our climate change campaign was the commitment weextracted from one of the International oil companies, Chevron, following the pressure wemounted and with the active support of the government of California in the US, to commit toending gas flare by the end of 2015. In 2012, we will continue with our climate changeinitiatives because of the enormous opportunities available, opportunities to end pollution, toregenerate our environment, to create green jobs and to attract green investments.

59. The problem of flooding, shore and coastal erosions are on the increase, which makes itimperative that we must not be bystanders on the issue of climate change. Unchecked, these

problems destroy lives and impoverish our people; therefore this administration will not relentin seeking support to combat this menace, wherever possible. We are also aware that a well-

planned and executed road with serviceable drainage systems will reduce vegetationencroachment, which has become a threat on our roads. A comprehensive drainage master plan

shall be executed for all our cities. Major axial drains and discharge points shall be built as amatter of priority, while link drains shall be systematically and progressively constructed andlinked to the axial drains.

60. On waste management, we will continue to refine our strategy to keep our towns clean. Wewill continue with the collection and disposal of solid waste in major towns in the State, in anenvironmentally sustainable manner. In the coming year, we will strive to make environmentalmanagement compatible with economic growth. To this end, government has proposed the sumof N1billion (one billion naira) each for the Asaba and Warri drainage projects, N500m (fivehundred million naira) and N250m (two hundred and fifty million naira) respectively forUghelli and Uzere drainage projects.

YOUTHS AND SPORTS DEVELOPMENT


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61. Mr. Speaker, distinguished Honourable members, Delta State has achieved so much inSports Development, hence this administrations continuous drive to sustain and even exceedthe high level of sporting performance exhibited by our Sports men and women, both atnational and International events. We are using sports as a tool for promoting and sustaining

peace and security in the State. We have been champions at four out of the last five editions of

the National Sports Festival. We have won virtually all the trophies at other games. By thespecial grace of God we shall defend and sustain these victories.

62. In the area of youth development, government will continue to collaborate withdevelopment agencies to positively engage the youths and provide them with basic skills thatwould put them in good position for self employment and legitimate means of livelihood. Thecontinuous establishment of skills acquisition centres across the State are avenues for ouryoung people to learn trades that will enable them become economically self-reliant. The Stategovernment is working assiduously to ensure that the construction work at the MultipurposeYouth Centre, Egbokodo, is completed quickly. We are appropriately positioning this centre toreintegrate former militants to develop economically useful skills. The sum of N1billion (one

billion naira) is set aside for the completion of the youth centre in the 2012 fiscal year.

63. The rights and protection of the vulnerable and less privilege in our midst remains a sourceof concern to government. For this reason we have taken far-reaching steps towards passing theChilds Rights Law to fast-track the protection of our childrens rights. To further strengthenthis, Mr. Speaker, I have approved the inauguration of the States Childs RightsImplementation/Protection Committee for the enforcement of provisions of the law.

SPECIAL INFRASTRUCTURE DEVELOPMENT

64. To fast track infrastructural development in the state, Mr. Speaker, this administrationcreated a Directorate for Special Infrastructure. Some of the special projects are being financedwith the Delta State Development Bond. With this strategy, we hope to have acceleratedinfrastructure development and ensure a better life for our people. The Special Projects include:(i) Trans-Warri/Ode-Itsekiri Bridge and Access Roads Project N5.00 bn(ii) Ughelli-Asaba Road Dualisation Project - N5.00bn(iii) Ogheye Floating Market Project N1bn(iv) Sapele/Abigborodo/Arowon Road - N3,2bn(v) New Government House Complex, Asaba - N2,00bn(vi) Osubi Airport Development - N5.00bn(vii) Sapele Modern Market - N1.00bn(viii) The four (4) new Polytechnics Project (Sapele, Bomadi, Aboh and Abigborodo) -

N4.00bn(ix) Primary and Secondary Schools - N7.53bn(x) Remodelling and rehabilitation of Baptist Hospital, Eku - N1.7bn(xi) Maternal and Child Care Centre, Warri and Ekpan - N1.31bn(xii) Mass Transportation - N5.41bn

MILLENNIUM DEVELOPMENT GOALS

65. In the last four years, the State government has been working in collaboration with theFederal Government to advance the attainment of the goals of MDG. Government hasconsistently set aside funds as counterpart contribution to the partnership which has so far

yielded positive results. For the 2012 fiscal year, the sum of N1.5billion (one billion, five


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hundred million naira) is set aside as the States counterpart fund for the attainment of theMillennium Development Goals.

DELTA STATE OIL PRODUCING AREAS DEVELOPMENT COMMISSION

(DESOPADEC)

66. Mr. Speaker, you will recall that this administration took far reaching steps towards thereorganization/re-structuring of DESOPADEC in the areas of fiscal management, and policyimplementation. This was to make it an efficient and effective intervention agency. With thiseffort, the Commission is well positioned, to discharge its assigned roles creditably.

67. In accordance with the law setting up the Commission, therefore, we have set aside for the2012 fiscal year the sum of N35billion (thirty-five billion naira) representing 50% of projectedderivation revenue receipts from oil accruable to Delta State for the development of oil

producing communities. About90% of the allocation to the Commission will be channelledtowards infrastructural development in the oil producing communities focusing on completionof ongoing projects, youth and women development, rehabilitation and reconstruction of

schools, rural health care, rural roads, housing, and electrification.

BUDGET IMPLEMENTATION

68. Mr. Speaker, Sir, to ensure efficient and successful implementation of this budget proposal,we intend to apply stricter control over expenditure, we will be firm on fiscal discipline at alllevels of governance. We will monitor closely the activities of departments of government toensure the realization of the goals of this budget. We will continue to strengthen relevantinstitutions in charge of government businesses to improve on the skills and competencies oftheir officers as they discharge their responsibilities. The Ministry of Economic Planning will

be empowered to provide advice to agencies, where necessary, in regard to actions proposed toachieve the Budget objectives.

69. Budget implementation would be reviewed and tracked periodically, and at a minimum,quarterly, to ensure that programs are implemented effectively and to identify any financial or

policy slips. In this regard, all Ministries, Departments and Agencies will be required to reporton their physical and financial progress in implementing the Budget on quarterly basis. TheEconomic Intelligence Unit (EIU) in the Ministry of Economic Planning will be strengthenedin the area of price intelligence, expenditure control and tracking to ensure that governmentgets value for money spent in any transaction, while at the same time adhering strictly to due

process.

70. The role of the project monitoring teams, aside, the responsibility for successful executionof any project rests with the implementing agency. Ministries, Agencies and Departments aretherefore required to pay greater attention to the strict supervision of projects under them.

CONCLUSION

71. Mr. Speaker, members of this Honourable House, I cannot end this presentation withoutreminding us yet again that no matter what tempting figures we set out in the budget proposalsfor year 2012, our projections will be fruitless if we do not make conscious efforts to ensure

peace, security and harmony in the State. In fact, the importance of the relationship betweendemocratic stability and economic development is worth stressing and I count on yourcontinuous support of government policies and programmes.

72. Please permit me therefore, Mr. Speaker, to once again convey the most sincere gratitude of


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the Executive Arm of government to you all in the area of ensuring the even development ofour State. Your supportive role, understanding and frankness have helped to guarantee the verysmooth take-off of the second tenure of this administration. I salute you all.

73. Our goal, Mr. Speaker is to lighten the burden of our people. But much as we are prepared,

we are also aware of our limitations as a government. We cannot do it alone and we do nothave all the answers. We, therefore, seek the support, cooperation and collaboration of allcitizens in the state. We have encountered difficult challenges these past few years. We aregrateful to God Almighty for giving us the strength and wisdom to face the challenges. I wishto thank all our people for the support they have continued to give to this administration.Trusting in their continued support, encouragement and guidance, I am confident that we canface the future with courage as we all join hands to move Delta State to greater heights.

74. Mr. Speaker, I wish to acknowledge, with deep gratitude, the prayers and goodwill of allDeltans towards this administration and my humble self. Mr. Speaker, allow me to also thankmembers of my team who are contributing immensely to the success of government. Above all,

I thank God Almighty for his mercies and grace upon us all.

75. Compliments of the season to all of you. Thank you and God bless Delta State.

Office of the Governor,Government HouseAsaba.

December 14, 2011.

delta state budget 2012

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