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Below are details of his presentation:
Mr. Speaker,
Honourable Members,
I am delighted to address you this day on the occasion of the formal presentation of the 2022 Appropriation Bill that contains the details of the Proposed Budget Estimates of the State Government for the next fiscal year.
It is indeed gratifying to perform this solemn annual ritual which is central to the sustenance of my administration mantra the Rescue Agenda.
Before presenting the 2022 Budget, let me on behalf of the Executive, acknowledge with profound gratitude the commitment that the House of Assembly has demonstrated in ensuring an enduring partnership with the Executive in the interest of our people.
I recall the thoroughness with which you considered the draft 2021 estimates which you kindly passed in record time. The passage enabled us to sign the 2021 Budget by 17th December 2020 and have the general expenditure warrants issued effective January 1, 2021.
Mr. Speaker, Honourable Members, during this address, I will present highlights of our 2021 Budget performance and proposals for the next fiscal year. The full details of these proposals will be provided by the Honourable Commissioner of Budget and Economic Planning to the Honourable House subsequently.
OVERVIEW OF THE 2021 BUDGET
Mr. Speaker, Honourable Members may recall that this Honourable House appropriated the sum of One Hundred and Forty One Billion, Six Hundred and Twenty Five Million, Four Hundred and Thirty Five Thousand, Nine Hundred and Sixty One Naira, Eighty Kobo (N141,625,435,961.80) for the services of the State Government for the 2021 fiscal period.
This was broken down into Eighty Two Billion, Two Hundred and Forty Two Million, Six Hundred and Forty Thousand, Six Hundred and Fifty Naira, Ninety Kobo (N82,242,640,650.90) for recurrent expenditure while the balance of Fifty Nine Billion, Three Hundred and Eighty Two Million, Seven Hundred and Ninety Five Thousand, Three Hundred and Ten Naira, Ninety Kobo (N59,382,795,310.90) was for capital investment.
In the course of the year, there were need to revise the 2021 Approved Budget due to our inability to meet the funding needs of most of the expenditure items. Budget revision is a normal exercise in a budget life cycle as often times unforeseen circumstances arise during implementation.
The revision of the 2021 Budget estimates did not alter the Budget size of One Hundred and Forty One Billion, Six Hundred and Twenty Five Million, Four Hundred and Thirty Five Thousand, Nine Hundred and Sixty One Naira, Eighty Kobo (N141,625,435,961.80) but altered the Recurrent and Capital figures as follows;
Recurrent Expenditure from Eighty Two Billion, Two Hundred and Forty Two Million, Six Hundred and Forty Thousand, Six Hundred and Fifty Naira, Ninety Kobo (N82,242,640,650.90) to Seventy Four Billion, Nine Hundred and Fifty Seven Million, Six Hundred and Forty Thousand, Six Hundred and Fifty Naira, Ninety Kobo (N74,957,640,650.90) and Capital Expenditure from Fifty Nine Billion, Three Hundred and Eighty Two Million, Seven Hundred and Ninety Five Thousand, Three Hundred and Ten Naira, Ninety Kobo (N59,382,795,310.90) to Sixty Six Billion, Six Hundred and Sixty Seven Million, Seven Hundred and Ninety Five Thousand, Three Hundred and Ten Naira, Ninety Kobo (N66,667,795,310.90).
As at 30th September, 2021, provisional figure shows that a total sum of Sixty Five Billion, Two Hundred and Forty Eight Million, Twenty Two Thousand, Three Hundred and Seventy Two Naira, Thirty Eight Kobo (N65,248,022,372.38) accrued from the recurrent and capital sources of revenue.
This is broken down as follows;
Opening Balance of Two Billion, Three Hundred and Thirty Three Million, Four Hundred and Seventy One Thousand, One Hundred and Eighty Seven Naira, Thirty Kobo (N2,333,471,187.30);
Federal Statutory Revenue of Twenty Six Billion, Forty Million, Five Hundred and Thirteen Thousand, Four Hundred and Fifty Five Naira, Ninety One Kobo (N26,040,513,455.91);
Value Added Tax (VAT) of Thirteen Billion, Five Hundred and Thirty Million, One Hundred and Forty Nine Thousand, Nine Hundred and Fifty Five Naira, Seventy Seven Kobo (N13,530,149,955.77);
Internally Generated Revenue of Six Billion, Five Hundred and Fourteen Million, Nine Hundred and Sixty Six Thousand, Five Hundred and Seventy Six Naira, Fifty Four Kobo (N6,514,966,576.54);
Aids and Grants of Three Billion, Five Hundred and Nine Million, Six Hundred and Fifteen Thousand, Six Hundred and Thirty Three Naira, Ninety Six Kobo (N3,509,615,633.96);
Domestic Loan of Eleven Billion, Two Hundred and Fifty Four Million, Five Hundred and Seventy Thousand, Eight Hundred and Twenty Two Naira, Ninety One Kobo (N11,254,570,822.91) and
External Loan of Five Hundred and Twenty Six Million, Nine Hundred and Thirty Two Thousand, Eight Hundred Naira, Zero Kobo (N526,932,800.00), out of which Government had expended the sum of Forty Five Billion, Three Hundred and Forty Six Million, One Hundred and Twenty Three Thousand, Three Hundred and Fourteen Naira, Fifteen Kobo (N45,346,123,314.15) on recurrent activities and Nineteen Billion, Nine Hundred and One Million, Eight Hundred and Ninety Nine Thousand, Fifty Eight Naira, Twenty Three Kobo (N19,901,899,058.23) for capital layout.
The expenditure profile shows that 69.50% of the total receipt went for Recurrent Expenditure and 30.50% went for Capital Expenditure. Therefore total percentage performance of the Budget stood at 34.55% as against the expected 75% for the period of review.
Some sector projects executed within the period include the following:
WORKS AND TRANSPORT
Mr. Speaker, Honourable Members, my administration’s intervention in road constructions remains sacrosanct. We are on course to deliver on the following road projects:
Lacheke – Pantisawa road of 20 kilometre is 45% completed,
Wukari – Tsokundi road of 30 kilometre is 97% completed,
Mararaban – Baissa – Abong roads (Lot 1 of 28 Kilometre is 27% completed,
Lot 2 of 28 kilometre is 26% completed and Lot 3 of 26 kilometre is 10% completed).
The Dual Carriage way from the NYSC Permanent Orientation Camp along Wukari Road to Jalingo City Gate at Pantinapu along Yola Road including Pedestrian Walkways, a Bridge across Nukkai River, a Flyover and six (6) Pedestrian Bridges of 18 Kilometre is 67% completed.
Other roads that resources were expended on in the year 2021 include;
Takum – Lissam road of 1.5 Kilometre is 100% completed, Pamanga – Dakka road of 35 Kilometre and Yerima – Gassol – Dominion road of 24 Kilometre.
Contractors have been mobilized to sites and work has commenced. I want to re-emphasis that these road projects are very dear to the heart of my administration.
Also the sector has provided and installed baggage security machine at the Danbaba Suntai Airport, paid fee for engineering design for a new run way in the airport, settlement of Federal Airport Authority of Nigeria (FAAN) 2021 service fee including North East Regional Shuttle contribution for the takeoff of the North East Regional Shuttle Airline amongst others.
In all government has spent the sum of Sixteen Billion, Six Hundred and Twenty Million, Seven Hundred and Thirty Five Thousand, Nine Hundred Eighty Five Naira, Fifty One Kobo (N16,620,735,985.51) in the sector as at 30th September 2021 and the 6th Certification of Valuation (CV) has been processed to the sum of Three Billion, Six Hundred Million Naira (N3,600,000,000.00) to be paid before the end of the year.
EDUCATION
My administration has made some modest achievements in the year under review, these include continuous interventions in basic, secondary and tertiary education sub-sectors. Prominent among these interventions is the deployment of 2019 Matching Grants (Draw Downs) received by the State Universal Basic Education Board (SUBEB) in the year 2021.
The Board delivered the following: constructed 207 classrooms across the State with 71 toilets, 1 library, 1 laboratory, 1 examination hall, 1 generation room, 1 security post and 1 fence while it rehabilitated 631 classrooms across the State, provided 19,428 furniture, 1,800 sets of plastic furniture, 280 sets of teachers’ seats including library furniture & 90 stools of laboratory furniture.
Others include geophysical investigation for the drilling of boreholes, procurement of Post – COVID 19 Sanitation items, provision of agriculture/nutrition intervention.
The sector also ensured that students in exchange programme are taken care of. Likewise in the course of the year, the sector hosted National Council on Education for all education stakeholders in Nigeria. Taraba State University has made some giant strides in the sector.
The University is today ranked 17th out of over 200 universities in the country. It has produced 70 Professors in 2021 from 2 in 2017. It has increased its faculties from 6 in 2017 to 11 faculties in 2021 amongst others. There were also great interventions in the State Polytechnic Suntai and the College of Education Zing.
In all the sum of Three Billion, Seven Hundred and Eighty Million, Four Hundred and Eleven Thousand, Three Hundred and Eighty One Naira, Seventy One Kobo (N3,780,411,381.71) was expended in the sub sector.
WATER RESOURCES
Mr. Speaker, Honourable Members, the year 2021 witnessed the gradual picking up of activities from the post COVID-19 period with concentration of efforts towards the completion of projects earlier started but could not continue due partly to financial and other challenges.
Jalingo Primary Water Project:
My Government through the Ministry of Water Resources saw the need for the speedy completion of the Jalingo Primary Water supply project to avert further rise in the cost of the project by reviewing the project and inclusion of additional work providing funds to facilitate its completion by early 2022.
The total reviewed cost of the project now stands at Twelve Billion, Four Hundred and Nineteen Million, Five Hundred and Seventy Nine Thousand, Six Hundred and Seventy Five Naira, Forty Three Kobo (N12,419,579,675.43).
Total payment so far made stands at Eight Billion, Three Hundred and Two Million, Four Hundred and Fifty Thousand, Five Hundred and Forty One Naira, Fifty Nine Kobo (N8,302,450,541.59). The project is currently at 60% completion level and progressing steadily.
AFDB Urban Water Supply Improvement for Jalingo, the reform of the Urban Water Supply Sector being initiated and funded by the Taraba State government and the African Development Bank witnessed a boost in the Jalingo water improvement with most of the planned construction, institutional reforms and capacity development trainings both within and outside Nigeria to boost service delivery almost completed.
With the support from USAID, the TAWASCO has undergone series of reform process aimed at repositioning the corporation to provide improved services to its teeming customers.
Inclusive Basic Service Delivery and Livelihood Empowerment Integrated Program (IBSDLEIP)
The TRSG/AfDB-funded Inclusive Basic Service Delivery and Livelihood Empowerment Integrated Program (IBSDLEIP), is a five – year loan package of Twenty Seven Million Four Hundred and Forty Thousand US Dollars ($27,440,000.00) and is being carried out in collaboration with other relevant line ministries.
It is aimed at achieving its goals of poverty reduction and improvement of lives for the rural people of the state in the areas of Water supply, Sanitation and Hygiene (WASH), Health, Education, Livelihood/Economic empowerment and Institutional strengthening/Program management activities, including capacity building trainings for both the program implementers and beneficiaries across the ten (10) prioritized and selected Local Government Areas of the State.
So far, the sum of Two Million, Nine Hundred and Sixty One Thousand, Two Hundred and Eleven US Dollars, Eighty Five Cents ($2,961,211.85) has been disbursed to the program by the Bank for the execution of its approved work planned activities in the above sectors since commencement in 2019 to date for the provision of service delivery, capacity building and infrastructural development.
AGRICULTURE
Mr. Speaker, Honourable Members, in the year 2021, the agriculture sector consolidated her interventions by providing the following to her farmers to enhance their productivity: Certified Assorted Seeds and Assorted Agrochemical & Equipment. The Ministry also re-invigorated Cassava Mass Production and Soya Beans Production programmes in the State.
The deliverables encapsulated above will shove up the income base of our farmers and subsequently the State revenue base. Also the European Union interventions in the State through PROSELL/OXFAM have covered several milestones in empowering the locals in their farming skills.
This is aside their facilitation of the State Agriculture Policy development. My administration therefore committed the sum of Four Hundred and Forty Million, Eight Hundred and Thirty Two Thousand, Five Hundred Naira, Zero Kobo (N440,832,500.00) in the Agriculture Sector.
HEALTH CARE DELIVERY
In ensuring that Tarabans are given quality health care services, my administration resolved to consolidate on the gains of service delivery in the sector. The provision of Solar Panel Roof Racks building for our hospitals is to ensure that health care services to our citizenry are not hindered.
Also there is a provision of Specialized Health Services in the Specialist Hospital in Jalingo through the establishment of Molecular Laboratory of international repute. The sector equally received a boost in funds mobilization for the State Contributory Health Insurance Agency to hit the ground running. In all the sum of Five Hundred and Nineteen Million, Four Hundred and Twenty Thousand, Eight Hundred and Twenty Six Naira, Thirty Three Kobo (N519,420,826.33) was expended in the sector.
OTHER SERVICE DELIVERY
Mr. Speaker, Honourable Members, several service delivery were carried out in the year under review. In Urban Development sector, in order to ensure that roads and drainages in cities and towns are protected, heavy duty equipment are overhaul annually to meet up with the demand of their maintenance.
The sector also procured sanitation equipment for the urban wastes. The Youth and Sports sector was able to carry out the followings activities: State Sports Festival, Zonal Sports Competition, National Sports Competition and assistance to National Youth Service Corps (NYSC). Under Rural Development sector, my administration scaled up our rural area intervention by supplying and installing 230 Kilowatt Solar Energy in Wukari, Bambur and Gembu Hospitals.
The sector also procured twenty (20) numbers transformers for the communities in the State. For Humanitarian services, this year witnessed a lot of interventions particularly in the coordination and management of disasters.
For the Environment sector, the administration was able to undertake the following: Enhancing afforestation and re-afforestation schemes, monitoring and promotion of forest and game reserves, solid waste management including purchase of chemicals for cleaning and fumigation for COVID-19, and the State contribution to Ngel Nyaki Mountain Resort activities amongst others.
The Office of the Secretary to the Government of the State (SGS) undertook several interventions as the engine room of my administration. In all the sum of One Billion, Sixty One Million, Two Hundred and Twenty Five Thousand, Seven Hundred Seventy Nine Naira, Zero Kobo (N1,061,225,779.00) was expended in these service delivery.
2022 BUDGET ESTIMATES
As a sub-national government with no control over monetary policy, the State budget is our key fiscal policy tool and the only opportunity to insulate the State economy from negative shocks and turn the tide towards growth and development. The budget is also our most important mechanism towards achieving the goals of the Rescue Agenda.
The preparation of the 2022 Budget was guided by the following macroeconomic variables as determined by the Federal Government:
International oil price benchmark of $57.00 per barrel, Oil production quota of 1.88 million barrels per day, United States Dollar exchange rate to N410.15, Inflation rate of 13% and a GDP growth rate of 4.20%.
Mr. Speaker, Honourable Members, for the State services in the 2022 fiscal period, the Government has budgeted the sum of One Hundred and Forty Six Billion, Seven Hundred and Eighty One Million, Six Hundred and Fifty Three Thousand, Six Hundred and Seventy One Naira, Eighty Two Kobo (N146,781,653,671.82) which represents an increase of Five Billion, One Hundred and Fifty Six Million, Two Hundred and Seventeen Thousand, Seven Hundred and Ten Naira, Two Kobo (N5,156,217,710.02) or 3.64% increase than the 2021 Approved Budget.
TOTAL REVENUE BREAKDOWN
The projected revenue of One Hundred and Forty Six Billion, Seven Hundred and Eighty One Million, Six Hundred and Fifty Three Thousand, Six Hundred and Seventy One Naira, Eighty Two Kobo (N146,781,653,671.82) comprises an Opening Balance of Three Hundred and Fifty Million Naira, Zero Kobo (N350,000,000.00) representing 0.24%,
Internally Generated Revenue (IGR) estimate of Ten Billion Naira, Zero Kobo (N10,000,000,000.00) representing 6.81%, Federal Statutory Revenue of Fifty Billion, Six Hundred and Sixty Two Million, Two Hundred and Thirty Four Thousand, Fifty Naira, Eleven Kobo (N50,662,234,050.11) representing 34.52%,
State share of Value Added Tax of Nineteen Billion Naira, Zero Kobo (N19,000,000,000.00) representing 12.94%, Federal Government Bridging Facility of Eighteen Billion, Two Hundred and Twenty Five Million, Three Hundred and Thirty Six Thousand, One Hundred and Three Naira, Eighty Nine Kobo (N18,225,336,103.89) representing 12.42%,
Domestic Borrowing of Seventeen Billion, Five Hundred Million Naira, Zero Kobo (N17,500,000,000.00) representing 11.92%, Aids and Grants of Eighteen Billion, Three Hundred and Seventy Three Million, Four Hundred and Nineteen Thousand, Seven Hundred and Twenty Four Naira, Zero Kobo (N18,373,419,724.00) representing 12.52%,
External Loan estimate of Twelve Billion, Forty Million, Six Hundred and Sixty Three Thousand, Seven Hundred and Ninety Three Naira, Eighty Two Kobo (N12,040,663,793.82) representing 8.20% and the Sales of Government Assets of Six Hundred and Thirty Million Naira, Zero Kobo (N630,000,000.00) representing 0.43% (Revenue Source).
EXPENDITURE
Total Recurrent Expenditure is estimated at Seventy Eight Billion, Seventy Two Million, Five Hundred and Eighty Seven Thousand, Six Hundred and Seventy Nine Naira, Ninety Kobo (N78,072,587,679.90) representing 53.19%.
This is made up of total Personnel Cost of Thirty Nine Billion, Two Hundred and Fifty Five Million, Two Hundred and Fifty Five Thousand, Four Hundred and Forty Eight Naira, Zero Kobo (N39,255,255,448.00) or 26.74%,
Overhead Cost of Twenty Three Billion, Three Hundred and Eighty Eight Million, Six Hundred and Fifty Seven Thousand, Nine Hundred and Seven Naira, Fifty Five Kobo (N23,388,657,907.55) or 15.94%,
Social Benefits (Old and Aged) of One Billion, Three Hundred and Twenty Four Million, Eight Hundred Thousand Naira, Zero Kobo (N1,324,800,000.00) or 0.90%,
Grant and Subsidies of Three Hundred and Ninety Million, Twelve Thousand, One Hundred and Thirty Nine Naira, Zero Kobo (N390,012,139.00) or 0.27% and
Debt Services of Thirteen Billion, Seven Hundred and Thirteen Million, Eight Hundred and Sixty Two Thousand, One Hundred and Eighty Five Naira, Thirty Five Kobo (N13,713,862,185.35) or 9.34%.
The 2022 Budget has a capital expenditure estimate of Sixty Eight Billion, Seven Hundred and Nine Million, Sixty Five Thousand, Nine Hundred and Ninety One Naira, Ninety Two Kobo (N68,709,065,991.92) representing 46.81% with the following sector allocations in accordance with the classifications of National Chart of Accounts:
Economic: Thirty Seven Billion, One Hundred and Seventy Two Million, Nine Hundred and Forty Two Thousand, Six Hundred and Two Naira ,Ninety Kobo (N37,172,942,602.90) representing 25.33%.
Social Services: Twenty Two Billion, Eight Hundred and One Million, One Hundred and Twenty Thousand, Three Hundred and Fifty Naira, Twenty Two Kobo (N22,801,120,350.22) representing 15.53%.
Law and Justice: Two Billion, Six Hundred and Sixty Two Million, Five Hundred and Sixty Three Thousand, One Hundred and Ninety Nine Naira, Sixty Kobo (N2,662,563,199.60) representing 1.81%.
Administrative: Six Billion, Seventy Two Million, Four Hundred and Thirty Nine Thousand, Eight Hundred and Thirty Nine Naira, Twenty Kobo (N6,072,439,839.20) representing 4.13%.
IMPLEMENTATION OF THE 2022 BUDGET
In implementing the 2022 Budget, government has resolved to fast track the completion of all on-going capital projects that are close to the heart of my administration. The resolution is sacrosanct so that we will not bequeath any project for the succeeding administration.
Therefore the implementation of the 2022 Budget will be guided by the following:
Even though revenue generation/collection has remain our major fiscal problem, all ministries, departments and agencies (MDAs) must ensure that they vigorously collect, account for and remit their internally-generated revenue.
All ministries, departments and agencies (MDAs) must grow their revenue and plug all linkages. In achieving the objectives of this year budget, my administration will be bold, decisive and take urgent actions. So we will act as may be required.
All ministries, departments and agencies (MDAs) must however continue to rationalize their expenditures as we cannot afford waste. In reality our largest expenditure items are personnel cost and capital expenditure which account for over 70% of the 2022 Budget.
In ensuring that all on-going capital projects are completed, my administration will likely resort to borrowing to finance our fiscal gaps as encapsulated in the 2022 Budget in line with Section 41 (1)a of the Fiscal Responsibility Act 2007 specified that borrowings are essentially for Capital Expenditure and Human Development.
Also the implementation of the 2022 Budget will welcome citizen’s participation via monitoring or oversight due to our administration’s signed-in in Open Government Partnership (OGP).
Lastly, I wish to again applaud the leaders and honourable members of this hallowed chamber. You have continued to partner with the Executive in ensuring that our bills are considered and passed with speed. I know that this one will not be an exception.
In the light of this, I wish to inform Mr. Speaker and the Honourable Members that an executive bill on the establishment of TARABA STATE BUREAU FOR STATISTICS will be forwarded shortly for the House consideration and passage.
It is now my singular honour and privilege to lay before this Honourable House the 2022 Taraba State Appropriation Bill that I christened the BUDGET OF HOPE AND CONSOLIDATION to the tune of One Hundred and Forty Six Billion, Seven Hundred and Eighty One Million, Six Hundred and Fifty Three Thousand, Six Hundred and Seventy One Naira, Eighty Two Kobo (N146,781,653,671.82) .
Wishing you fruitful and speedy deliberation.
Thank you and God Bless.
