The Rt. Hon. Speaker,
Principal Officers and
Members of the Bayelsa State House of Assembly
I am delighted to come before you once more to present the Budget Appropriation Estimates for the year 2012. Yes, going by the present political timetable it is the last budget presentation of the first lap of my administration. See you on the other side. By the Grace of God we shall conquer.
Mr. Speaker, I have good reasons to look back at the last four and a half years with gladness of heart and praise to God Almighty on my lips. This is because the good Lord has showered his abiding grace on the government and good people of Bayelsa State. We have come through thick and thin and as a people we are stronger for it.
Mr. Speaker, the presentation of the 2008 appropriation estimates afforded me the singular opportunity to lay bare before the good people of the state, my vision statement for Bayelsa State, which was the ‘creation of a prosperous, secure and unified Bayelsa State.’ I ran with this vision with great zeal and commitment and it is gratifying to observe that after about 4 years, our vision has become clearer, and the evidence of this lies in the progressive realization of our collective aspirations for growth and development. Indeed, I make bold to say that we have collectively fought a good fight.
Indeed we have run a healthy race; and I am happy to state without any fear of contradiction that we have created a heartwarming distance between the hopeful present and our shameful past of insecurity, youths restiveness, infrastructural inadequacy, and the begging syndrome among our active population. By the special grace of God Almighty we have made appreciable progress. Because we have set high standards for this administration, we acknowledge that we have not yet arrived at the promised land of our dreams. However we are mentally and spiritual equipped and we command a strong political will to surmount all odds on our way, we are prepared, more than ever before to harness our physical and human resources to attain our noble goals.
Let me make bold to say that as a people we have done well particularly in the political realm. Our identity as a people have soared to the heavens even as the Almighty God has enabled us to produce the number one citizen of this great country in the person of Dr. Goodluck Ebele Jonathan GCFR, President of the Federal Republic of Nigeria. This is the Lord’s doing and it is monumental in our eyes. Let me therefore seize this opportunity to once again thank the rest of Nigeria, for this great show of brotherhood and fairness. We feel a high sense of belonging to the one big family called Nigeria; and our commitment to the unity of this country remains unshakable and steadfast.
Mr. Speaker, we started a journey about 4 years ago to ensure the peace, security and prosperity of our people. Accordingly, we conceived and designed a wide range of projects and programmes in the various sub-sectors of our economy. Again the issue of engaging our youths with employable skills has taken the front burner in the management of our state economy. I am glad to report that a good number of these projects and programmes are well underway and have reached various stages of completion.
As we round up the 1st lap of my administration there is the urgent need to fine-tune the various training and skill acquisition programmes for our teeming youths. Of course, it is an established fact that government’s positive spending goes a long way in stimulating economic growth particularly in a state like ours. That is why I feel confident to come before you today with this Budget of ‘Job Creation and Fiscal Expansion’ a budget carefully crafted to enhance sustainable growth and development in Bayelsa State.
Review of the 2011 budget:
Mr. Speaker, you will recall that the 2011 approved budget was based on a projected oil production of 2.275 million barrels per day, bench mark oil price of $55/barrel and an exchange rate of N150/$1. Also the Bayelsa share of total National Oil production was projected at 16%, percentage increase in IGR was estimated at 54.8% and total fiscal Deficit as a ratio to the state GSP put at 5%. Based on the foregoing parameters and assumptions the total budget profile for the current year was approved as follows:
1. Statutory Allocation - - - - 144.188bn
2. Value Added Tax - - - - 5.580bn
3. Internal Generated Revenue - - 5.510bn
4. Capital Receipt - - - - 6.00bn
Total - - - - 161.278bn
Mr. Speaker during the course of the year, the state witnessed some positive changes in the parameters used for the 2011 budget framework (particularly that of the State’s share of total National Oil production which moved from 16% to 19%) coupled with the urgent need to execute some key projects, Government has since raised a supplementary Budget of N47.22bn which is presently before your esteemed house for consideration and approval.
In terms of actual receipts of revenues, the state has done creditably well as indicated by the half year statistics:
1. Statutory Allocation - - - 82.860bn
2. Value Added Tax - - - 1.880bn
3. Internal Generated Revenue - - 1.880bn
4. Capital Receipts - - - 1.500bn
Total - - - - - 89.020bn
Mr. Speaker, on the expenditure side, the half year report indicates that government total expenditure was put at N84.372bn. this was made up of:
1. Personnel Cost - - - 13.110bn
2. Overhead Costs - - - 15.189bn
3. Consolidated Revenue Charges - 29.259bn
4. Capital Expenditure - - - 26.813bn
Total - - - - 84.371bn
Mr. Speaker, the adoption by government of a strategic road map for the implementation of 2011 budget saw the completion for eventual commissioning of several projects this year. It is hoped that a lot more projects will be completed at the 2nd phase of project commissioning which is slated for December this year. I am happy to note that the state’s power supply has improved significantly in the Yenagoa capital territory and environs. Additionally, we made significant investments in Education, Health, and Works & Transport, which hopefully will lead to improved quality of life of the average Bayelsans. Also the state was able to meet her obligations on personnel costs, overhead payments and Consolidated Revenue Fund Charges (CRFC).
At this juncture, please permit me to express my profound appreciation to Mr. Speaker and all honourable members of the Bayelsa State House of Assembly and indeed the entire good people of Bayelsa State for the great sense of understanding and support given to this administration in the implementation of the 2011 budget.
The 2012-2014 Medium Term Expenditure Framework and the 2012 budget
In strict compliance with the provisions of the Fiscal Responsibility Law of 2009, the revenue and expenditure estimates presented in the 2012 budget were based on the 2012 – 2014 Medium Term Expenditure Framework (which had earlier been approved by this Honourable House) and the out comes of the 2012-2014 Medium Term Sector Strategies of the MTEF participating MDAs which has increased from 19 – 22. In keeping with the tenets of MTEF, the 2012 annual budget of the state contains programmes and projects that have been duly prioritized and carry the greatest potentials of creating the much needed jobs for our youths and expanding the fiscal corridors of the state.
2012 Budget; Key Assumptions and Target.
Mr. Speaker, as earlier stated the parameters and assumptions in the 2012 budget are strictly based on the contents of 2012-2014 MTEF. The only slight difference is that whereas the MTEF projection does not include excess crude; and the great efforts by the State Ministry of Finance at raising some of the state’s indices of revenue allocation, the 2012 budget proposals has taken all that into consideration. Thus the parameters and assumption for 2012 budget are as follows:
1. Crude Oil Price - - - $75/barrel
2. Production/day - - - 2.4mbd
3. Exchange Rate - - - N155/$1
4. State Production Indices- - - 19%
5. % Increase in IGR - - - 50.13%
6. Total Deficit - - - 3% of BYGSP
The Economy is projected to grow in 2012, 2013 and 2014 at a rate of 9%, 11% and 12% respectively.
Based of the above parameters and assumptions (including excess crude) the total revenue budget for 2012 fiscal year estimated as follows:
1. Statutory Allocation - - - N 212,932,195,846.00
2. Value Added Tax - - - N 7,094,000,000.00
3. Internally Generated Recurrent Revenue N 5,646,000,000.00
4. Capital Receipts - - - N 3,200,000,000.00
Total - - - - N 228,874,195,846.00
On the Expenditure estimates N98,703,108,000.00 or 43.10% is earmarked for recurrent expenditure. This is made up of N28,834,000,000.00 or 12.60% for personnel costs N33,826,108,000.00 or 14.75% for overhead costs and N36,043,000,000.00 or 15.75% for Consolidated Revenue Fund Charges. Our Capital Expenditure for 2012 has been estimated at N130,171,087,846.00 or 56.90% of the total budget.
Projects and programmes of the 2012 budget.
Mr. Speaker, the key projects and programmes that will be funded by the 2012 budget include:
Works and Transport:
Government efforts will be focused on the ongoing construction of internal roads in Yenagoa and its environments. A parallel dual road called the High Profile Road will be constructed from the Sanni Abacha Road to the Edepie – Ogbia Road. Government will pursue the construction of the phase 2 of the Glory Drive Road to create new access to the City Centre and fresh breath to the state capital.
The Senatorial Roads of Nembe-Brass Road, Yenagoa-Agge Road and Yenagoa Oporoma will be moved to the next phase.
The government will award contracts for the construction of drainage in Yenagoa this fiscal year. Government will also pursue dredging and sand filling of our major coastal towns in the state for expansion and growth of these communities. The government will take the sand filling of the Niger Delta University Amassoma to the next level. The government will also carry out studies for the construction of a modern Airstrip at the Ogbia axis preparatory to the kick off of the construction work for the Yenagoa International Cargo Airport.
For this sub sector the sum of N43.05 billion representing 33.07% of the capital budget for 2012 is hereby allocated.
Education:
Government will complete construction of the three senatorial secondary schools in the state which are the Bishop Dimeari Grammar School, Yenagoa; Nembe National Grammar School, Nembe; and the Gifted School, Sagbama’ Government will upgrade other secondary schools to boarding status. Government will pursue the completion of the soon to be awarded contract for the construction of 16 No’s of classroom for basic primary and junior secondary schools across the eight local government areas of the state.
To strengthen and promote skills based education, the government will convert eight secondary schools across the state to technical colleges with boarding facilities to increase our array of skilled manpower from the post secondary level to reduce the number of vulnerable youths from crime and violence, and promote productivity. Government will also give serious priority to the training and retraining of teachers to address the falling standards in the teaching curriculum. For high-level based student financing, Government will start running on the new scholarship policy in 2012.
For this sub sector the sum of N12.46 billion representing 9.57% of the capital budget for 2012 is earmarked.
Capital City Development Authority:
The Capital City Development Authority is to make a robust presentation to the State Executive Council on a way forward to fast track development of Yenagoa. These include the bulk acquisition of land in Yenagoa and its environs for Industrial, Commercial and Residential development in line with the Medium Term Sector Strategic plan.
CCDA is expected to be autonomous with distinctive budget anchored on the MTSS. The plan will then prequalify and engage contractors for road construction and estate development on a continuous basis as being done in Abuja. The urban renewal program will be enhanced on this platform with a phased demolition and ongoing estate development across the state capital.
The government is determined to complete the four – star hotel built by Top Housing/Anyim Osigwe Group as well as the Galleria Mall built by Silverbird Cinemas. The government also intends to complete the transparency plaza and the fifty houses for Distinguished Bayelsans.
The major focus of 2012 is for the unconditional implementation of the Yenagoa master plan with a distinctive budget for the Authority as practiced in other major cities across the globe.
For this sub-sector the sum of N8.47 billion representing 6.51% of the capital budget for 2012 is proposed.
Sports:
Sports Development remains key to the realization of mass employment for our teeming youths next year. To this end the state would expand its sporting infrastructure by providing additional sports facilities. In 2012 we intend to upgrade the facilities of the Yenagoa Sports complex.
This upgrade would include laying tartan tracks, wrestling gym, completion of swimming pool and upgrading of the hostel to a hotel standard. The NDU training pitch would be upgraded giving an alternative training location for sports men.
The state shall embark on the construction of the Bayelsa Star Stadium, a befitting stadium that would be comparable to any standard stadium worldwide. To complement this, a golf course would also be designed and built in 2012.
For this sub-sector the sum of N7.85 billion representing 6.03% of the capital budget for 2012 is earmarked
Health:
Government will commission the Melford Okilo Memorial Hospital with the landscaping, Doctors and other medical workers quarters next year. Government will also commission the renovation of secondary health facilities at General Hospital – Odi, General Hospital Sagbama, General Hospital – Ekeremor, General Hospital – Brass and General Hospital – Nembe. Government will complete the ongoing construction of new health centers across the state for accessibility of health care of all classes of Bayelsans.
The State Government is also determined to re-examine and re-organize the medical insurance scheme to include all facets of Bayelsans that will provide seamless medical services to our people without controversies. Government will also complete the school of nursing and midwifery complex of Tombia.
For this sub-sector the sum of N6.37 billion representing 4.99% of the capital budget for 2012 is allocated.
Local Government And Community Development
Government will continue with renewal programme for the rural communities through the provision of infrastructure. Government would expand the existing network of concrete roads and bridges in the rural areas. The government shall improve accessibility to the rural areas by providing additional landing jetties.
The fire service department shall be given considerable attention with the upgrading of the states fire service. In 2012 fire fighting equipment and boats would be procured.
To boost the state’s skill acquisition programme government shall embark on comprehensive renovation and furnishing of our craft development centers.
For this sub sector the sum of N5.84 billion representing 4.48% of the capital budget for 2012 is hereby presented.
Energy
Government is committed to the vision of providing 24 hours uninterrupted power supply to Bayelsans. To this end, government intends to complete the installation of the gas turbines and also work on the distribution network. Spares and other necessary appurtenances for the maintenance of the turbine would also be procured. The street lighting project in Yenagoa would be expanded to cover streets off the main roads.
The government shall expand electricity distribution/supply in Bayelsa State by electrifying communities. These communities shall include Okpoama/Diema, Ayakoro, Fantuo and conclude works on the 33KVA line to Atissa Communities next year.
For this sub sector the sum of N5.05 billion representing 3.85% of the capital budget for 2012 is hereby presented.
Housing and Urban Development:
The phase II of the New Commissioner quarters would also be initiated and completed to provide housing for public office holders. The Okaka phase II estate and a mass housing project using the PPP model would also take-off in 2012
These housing projects would no doubt close the housing gap in Yenagoa and open up new areas for development.
For this sub sector the sum of N4.67 billion representing 3.59% of the capital budget is earmarked.
Stimulus programme & Micro-Credit Administration Agency
The use of the stimulus programme to stimulate some parts of the economy and empowering of our populace would still be in the front burner of this administration. Funds would be provided for on lending through the micro-credit administration agency (MCAA). The stimulus scheme shall continue to provide for the youths and women with a bias towards empowerment through job creation.
For this sub sector the sum of N3.91 billion representing 3% of the capital budget for 2012 is allocated.
Information
In 2012 the government shall complete the construction of the Glory Land television Station and the Government Printing Press. Necessary equipment and furnishing for the studio and press would also be done.
We shall acquire books for the library and e library in the media houses.
For this sub sector the sum of N3.13 billion representing 2.4% of the capital budget is earmarked.
Judiciary
Works in this sub section would include the Customary Court of Appeal Complex, senior/junior staff quarters, and other essential buildings.
For the sub sector the sum of N3 billion representing 2.3% of the capital budget for 2012 is proposed.
Youths
The main focus of government in this subsector is in Industry Tailored Skills Training, whereby our youths would be given specific skills training towards employment in localized industries. This way our people would be gainfully employed when the finish training. We shall also explore the maritime academy and maximize opportunities in the partnership with Air Nigeria.
Construction and sand-filling works in the Peace & arbitration Center would also be undertaken.
For this sub sector the sum of N2.51billion representing 1.93% of the capital budget is earmarked.
Commerce and Industries.
Government is determined to make the plastic industry more functional by involving a strong private sector partner. To achieve our goal of Job creation, the government is to carry out studies to establish industries in each of the seven local government areas in the state outside of the capital. This will be done in recognition of the resource endowment of these local government areas. The government is also considering the construction of neighborhood markets in Yenagoa and Otueke in Ogbia local government area. The government will also carry out studies for the construction of a state of the act shopping mall in Yenagoa in conjunction with the private sector. The government will also conclude on studies for the establishment of micro-finance bank in Sagbama, Ekeremor, kiaima, Oporoma and Nembe.
For this sub sector the sum of N2.05 billion representing 1.5% of the capital budget for 2012 is presented.
Ministry of Justice
In 2012 this administration would construct outstation offices for the Ministry of Justice in the 8 Local Government Areas. Other construction works would include the Ministry of Justice office complex and the Directorate for Citizen’s Rights complex.
For the sub sector the sum of N2 billion representing 1.54% of the capital budget for 2012 is proposed.
Environment
Government will embark in the construction of the Glory Drive motor park along Glory Drive to provide a modern transport park for all users. To alleviate the parking problem within Yenagoa the neighborhood car park at Okaka would be completed. The Yenagoa Cemetery would also be completed.
For this sub sector the sum of N1.91 billion representing 1.47% of the capital budget for 2012 is hereby presented.
Agriculture.
Government will greatly rely on the agriculture sub-sector and the agric initiatives to achieve the job creation focus for 2012 fiscal year. The four special purpose vehicles of Niger Delta Seafoods Ltd, Bayelsa Farm Ltd, Bayelsa Palms Ltd and Creek food Supplies Ltd will be reorganized and greatly enhanced in their operation to create good number of jobs, revenue stream and economic growth for the state.
Government is also determined to reorganize the farmers association to ensure that loans are actually disbursed to real farmers and fishermen for the much-desired impact in food production and promote living standards. Government will use the instrumentality of the State Agriculture Development Programme (ADP) to provide extension services to assist postgraduate farmers. The government is also determined to construct a modern abattoir as well as a veterinary clinic in Yenagoa
For this sub sector the sum of N1.82 billion representing 1.4% of the capital budget for 2012 is hereby presented.
Water.
Government will deepen the Yenagoa reticulation works and provide support equipment for the Ovom and Igbogene water works. In 2012 we shall embark on restoration and completion of 20 abandoned water schemes across the state.
For this sub sector the sum of N1.78 billion representing 1.37% of the capital budget for 2012 is hereby presented.
House of Assembly.
In 2012 the House of Assembly shall construct constituency offices for all its members. This would give the populace the opportunity to have access to their representatives in their locality without having to come to Yenagoa.
For this sub sector the sum of N1.62 billion representing 1.25% of the capital budget for 2012 is hereby presented.
Due Process and e-Governance
In 2012 the 3 major e-governance projects would be completed and commissioned. In addition necessary license to enable the state fully utilize the hardware would be paid for. Capacity building on Due Process would be deepened with necessary training given to procurement officers.
For this sub sector the sum of N850 million representing 0.65% of the capital budget for 2012 is allocated.
Gender
The remand home shall be built this year to provide correction facilities to under-aged. The Government shall embark on special projects that would empower the targeted populace.
For this sub sector the sum of N628million representing 0.48% of the capital budget is earmarked.
Budget Monitoring and Implementation
The Ministry of Budget, Planning and Economy Management intends to use the provision of both the FRL and Procurement law to monitor the implementation of the 2012 budget. The Ministry intends to implement all the policies approved by the present administration.
And to ensure focused implementation of the 2012 capital budget the government has designed project-commissioning date for August 2012. This is to give ample time for the forth coming governorship elections, swearing-in and for the government to settle down. The proposed projects for commissioning include:
· Modern Abattoir
· Veterinary Clinic
· School of Nursing
· School of Midwifery
· General Hospital Odi
· General Hospital Sagbama
· General Hospital Ekeremor
· General Hospital Nembe
· Isampo Health Centre
· 8 Technical Colleges in Yenagoa, Kolokuma Okpokuma, Oporoma, Brass, Nembe, Ogbia, Ekeremor & Sagbama
· International Model School Nembe
· Sagbama Senatorial Model School
· Transparency Plaza
· New Governor/Deputy Governor’s office complex
Mr. Speaker, in the last half hour or so, I have tried to articulate the plans of my administration to ensure massive job creation and fiscal expansion for the good people of Bayelsa State for the 2012 fiscal year. I appreciate the contributions of the vast majority of our people to the sustenance of peace, which is indeed a precondition for growth and development. In fact the need to maintain this peaceful disposition has become even more imperative as we approach the critical threshold of another political transition in the state.
The stage is set for the Gubernatorial elections to be conducted between now and February next year. I therefore enjoin you to remain resolutely committed to executing a successful transition by putting the interest of the state above personal and selfish gains. We must remain focused on the challenges of building our state. Thuggery and violence are not the working tools for development. What we need instead is a spirit of brotherhood, tolerance and humility.
Mr. Speaker, without further ado, it is my honour to present to you for consideration and subsequent endorsement the draft budget estimates for the 2012 fiscal year as follows:
1. Total Revenue N228,874,195,846.00
2. Total Recurrent Expenditure N98,703,108,000.00
3. Total Capital Expenditure N130,171,087,846.00
I trust that you will take time to study the details and respond with dispatch.
Thank you for your kind attention and May God bless us all.
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