Date: 2007-11-28

Economic Confidential, January 2008

PROFILE

 

 

 

FOCUS

 

KWARA STATE BUDGET 2008

 

Budget Speech Delivered to Kwara State House of Assembly by his Excellency,

Dr. Abubakar Bukola Saraki, Executive Governor of Kwara State on November 28, 2007

 

 

The Honourable Speaker,

Members of the House of Assembly of Kwara State.

 

We give praise to the Almighty Allah for the glory of this day, which gives me the distinguished honour and privilege of presenting the year 2008 Budget proposals to this Honourable House.

Mr. Speaker, this year's budget is indeed significance, not only because it is the first budget to be presented in the second tenure of my administration, but also because it presents the opportunities for all that we have sought in consolidating on the development that we have pursued with much vigour since the inception of our administration in 2003. It is therefore a symbolic bridge between the past that we have achieved and the future that we are determined secure for our people. Before I proceed to present our budget proposals for the year 2008, permit me to do a cursory review of the 2007 budget, which was focused on expanding economic opportunities for our people and strengthening their capacity to create wealth and free themselves from poverty.

 

REVIEW OF THE 2007 BUDGET.

The year 2007 was the terminal year of the first tenure of this administration. Therefore, the budget for that year was mainly to consolidate on what we have achieved in the preceding years in various sectors.

 

ECONOMIC SECTOR

Agriculture

Our key agenda in the last four years was to lead Nigeria's drive for agricultural revolution and to establish a reputation for our State as an agriculture economy. I am proud to say that even though we still have grounds to cover, we have achieved significant success in this regard. Therefore, in the out-going year we have increased our efforts in empowering our farmers and improving their capacity for productive farming.

 

In the course of the year, 53 units of various brands of tractors were procured by the Government. These tractors were distributed to farmers at highly subsidized rate and on a very favourable repayment terms, spread over a period of time.

 

In the course of the year, the cassava processing factories at Ilorin and Offa were also upgraded to optimize their production efficiency with a further government investment of N21, 991,465 million. Similarly, in order to boost cash-crop production, 250,000 cocoa seedlings were distributed to cocoa farmers in the four (4) cocoa producing Local Government Areas in the State free of charge, while chemicals worth were distributed at 5% subsidy.

 

Mr. Speaker, you would recall that one of our strategies for transferring commercial farming skills to the local farming population of our state is to create a successor generation of farmers through the Integrated Youth Farm Settlement in Malete. I am happy to inform you that during the year, the first set of 100 trained youth farmers were graduated from the Youth Farm. A major component of this programme is to also provide incentive support and start-off capital, including farmlands to the young farmers. This was fulfilled through the clearing of 500 hectares of land allocated to the graduating students, among other infrastructure provisions.

 

Road and Transportation

Mr. Speaker, road infrastructure development has been a major focus of our economic development. Year 2007 witnessed increased expansion and improvement of road network in the State as a way of improving transportation of people and goods across the State. The sum of N2.2 billion was spent to commence, improve of complete several road projects in the State. These include the Shagbe - Babanla – Oreke (Ifelodun LGA), Oke-Onigbin – Ijara – Owode-Offaro (Isin LGA), Dongi-Bridge – Koro (Patigi LGA), Kosubosu – Chikanda (Baruteen LGA), Lanwa – Bode-Saadu road (Moro LGA) and Alapa – Balla – Eiyekorin (Moro LGA).

 

Government is also conscious of the growing traffic flow in the various urban centres in the State, especially in the Ilorin metropolis as a result of the increased commercial activities in the State. Therefore, apart from the regional roads, some of the Township roads also received major attention in the year. These include, Yoruba Road, Ode Alausa-Agbaji – Popo-Igbona road, Kwara Furniture road, Sa'adu Ayinde road, Emir's/Taiwo road, Etsu Palace-General Hospital road in Lafiagi, Olunlade – Idi Ogede road, New Yidi – Osere road, Uni-Ilorin Teaching Hospital permanent site access road and Esa – Ogidiri road in Offa.

 

SOCIAL SECTOR AND HUMAN CAPITAL DEVELOPMENT

Health

The primary focus of our health sector development in 2007 was to enhance access to qualitative primary healthcare by the majority of our people in both urban and rural areas. One key area that we have witnessed revolutionary success in with the Community Health Insurance programme, which we piloted in Shonga, Edu Local Government.

 

In conjunction with the Dutch Government and their local partners, we were able to launch a revolutionary community health insurance programme that, for the first time in Nigeria, health insurance was made available to the rural people. With as little as N200, our people in Shonga and its environs were able to access a broad range of medical treatments, including surgery.

In the course of the year, 21 Primary Health Centres were also rehabilitated and equipped. Similarly, the maternity and Gynecological units of Specialist Hospital, Sobi have been upgraded in anticipation of re-accreditation of the hospital to train house officers. Several doctors and house officers were also employed during the year to improve our hospital's ability to deliver healthcare services.

 

Education

Education continued to receive priority attention in the year 2007. Aside from government investments in rehabilitating educational infrastructure and facilities, the year also witnessed a major step-change in enhancing the quality of education in the State through a radical improvement in monitoring and supervision of teachers and students, as well as provision of teaching aids, especially in the development of sciences.

 

Information

Mr. Speaker, one of the key infrastructures of democracy is provision of information on government activities. Consequently, the year 2007 witnessed enhanced efforts to improve information facilities in the State, especially through the radio and the television. Through these efforts, signals of Kwara State Television are now clearly received in distant parts of our State and for the first time in the history of the State, the Station was able to bring life coverage of the last Eid Fitr Prayers and Festival to the people of the State. Also, for the first time in the history of our State, Radio Kwara was able to broadcast on two (2) channels (AM and FM channels) without interruption.

 

REGIONAL DEVELOPMENT

Water

The cardinal policy of government on water provision is to maintain access by ensuring that nobody in any part of our state would go beyond 500 metres to access potable water. It is pursuant to this that government ensured the rehabilitation, upgrading and expansion of the Asa Dam Water Works to deliver up to 13.5 million gallon by day. This project alone received expenditure to the sum of N191,290,526 million.

Also, during the year, a total of 18 Water Works in different locations in the state were awarded for rehabilitation, while ten of them have been completed at the cost of N127, 334,832 million. The Communities that benefitted from these rehabilitation efforts are: Osi, Malete, Gadaworo, Ajase-Ipo, Odo-Owa, Idofin, Oloru, Isanlu-Isin, Lanwa, Oke-Onigbin, Bode-Sa'adu, Owode-Offaro, Eruku, Igbaja and Agba-Dam.

 

Housing

In line with this administration's policy of making decent accommodation available to the populace, the Government was able to secure a loan of N500,000,000 million from National Housing Fund, managed by the Federal Mortgage Bank of Nigeria to embark on Mandate III Housing Estate which consists of 100 2-bedroom and 150 3- bedroom bungalows. The State's financial involvement in this project is through the provision of infrastructural facilities such as roads, water and electricity to the tune of N211, 000,000 million naira.

 

GENERAL ADMINISTRATION

Mr. Speaker, we have repeatedly emphasized our recognition of the Civil Service as the engine room of government. Therefore, in the out-going year, we embarked on various programmes and schemes aimed at improving the performance of the Service as well as encouraging and motivating the Civil Servants.

 

During the 2007 Budget Speech, this administration promised to bring the New Minimum wage into effect. I am glad to note that this was achieved from January of the year. The vehicle loan Scheme which was terminated about two decades ago was also resuscitated and financed with a N500 million loan facility with the first batch of 1,300 beneficiaries across the State.

All outstanding gratuities from the Year 2000 to December 2006 have also been fully defrayed. The sum of N1.5 billion was expended for about 1,347 pensioners or retirees. Mr. Speaker, it is noteworthy that all backlog of promotion of Civil Servants since 2003 to date had been carried out while the financial benefits have been fully settled.

We also paid considerable attention to capacity building in the out-going year. A total of 627 officers benefited from different Seminars and Workshops and 275 Officer enjoyed study leave in different Higher Institutions of Learning across the State.

 

OUTLOOK FOR THE 2008 FINANCIAL YEAR

Mr. Speaker, Honourable Members, the 2008 Budget proposal is conceived and intended to consolidate on the gains of the 2007 and to brake new grounds, conscious of the increased opportunities that the national economy will present in the new year. The breakdown of 2008 Budget Estimates is hereby presented as follows:-

 

1. Total Recurrent Revenue - N29, 410,286,241

2. Total Recurrent Expenditure -N23, 145,453,306

3.    Total Recurrent Surplus (Transfer to Capital Development. Fund) - N 6,264,832,935

4. Total Capital Receipts - N29,306,246,685

5. Total Capital Expenditure - N29,306, 246,685

 

From the foregoing, the size of the 2008 Budget proposals is N 52,451,699,991 (Fifty Two Billion, Four Hundred and Fifty One Million, Six Hundred and Ninety Nine Thousand, Nine Hundred and Ninety One Naira). This budget reflects an increase of 43.8% above the budget for 2007.

 

Mr. Speaker, Honourable Members, having given the picture of the total financial resources envisaged in the 2008 Financial Year, I proceed to present the expenditure estimates proposals.

Accordingly, I wish to highlight the total Recurrent Expenditure Estimates totaling N23,145,453,306 (excluding transfer to Capital Development Fund), as follows:

(a) Personnel Cost -N5,086,068,955

(b) Other charge

(Over-head Costs) -N8,212,540,000

(c) Consolidated Fund Charges -N9,846,844,351

Total Recurrent Expenditure -N23, 145,453,306

(d) Transfer to Capital

Development Fund -N 6,264,832,935

Total Recurrent Estimated Budget = N29,410,286,241

The proposed Capital Expenditure for 2008 is N29, 306,246,685 as against the sum of N17, 878,543,471 estimated in 2007. The amount is divided among the various sectors as follows:-

i.      Economic Sector:               N10, 226,164,136 - 35.62%

ii.             Social Service Sector:         N 6,395,084, 158 - 21.82%

iii.            Regional Development:        N7, 722,388,482 - 26.35%

iv.           General Administration:       N 4,771,609,409 - 15.49%

v.            Legislature :                      N191, 000,000 - 0.67%

Total             =                 N29,306,246,685

SECTORAL HIGHLIGHTS

Mr. Speaker, I hereby present a summary highlights of the various key sectors that will represent the priorities of government in the year 2008.

ECONOMIC SECTOR

Agriculture

As in the preceding year, we intend to intensify efforts in the development of agriculture in the coming year. Hence, a total sum of N2,329,374,595 is programmed for the sector in the 2008 Fiscal Year. During this period, the sum of N350,000,000 will be expended on procurement of Tractors for land preparation activities. In anticipation of increase in crop production about 54,000 litres of Herbicides and other pesticides will be made available to farmers in the year to protect farm crops.

 

Similarly, government also intends to make significant commitments in the areas of fertilizer procurement, Buffer stock and cassava processing programmes. These are expected to attract the sums of N207,077,834, N300,000,000 and N120,000,000 respectively in the year 2008.

 

The Integrated Youth Farm settlement of Malete in Moro LGA will also receive a new set of students in the year. These students, like their predecessors will also receive comprehensive training in all fields of commercial agriculture. Efforts will also be geared towards expanding the scheme to other Senatorial Districts of the State in order to increase access across the State.

 

In the year 2008, the Fish Hatchery along the New Yidi Road, Ilorin will be rehabilitated and expanded to produce 500,000 fingerlings annually. Fishing inputs such as fishing nets, boats, hooks, and out-board engines will also be made available to farmers at subsidized prices.

 

Industries and Commerce

The key strategy for jump-starting any economy and achieving rapid industrialization is through the development of small-scale enterprises and entrepreneurs. Efforts have been made in the past to provide micro-credit facilities to traders and some categories of service providers across the State as a major strategy for poverty alleviation. This has however met with limited success. In the year 2008, government intends to introduce a number of innovative packages that will deliver micro credits to small scale entrepreneurs across the State.

 

One key vehicle is the Joint-Venture proposed with Micro-Finance bank, which is likely to take off in the first quarter of 2008. Already, a sum of 300million has been provisioned for this effort, which is intended to provide start up as well as running capital to small scale entrepreneurs in the State. Similarly, government intends to go into partnership with existing local community banks in order to assist them to re-position for operation in a more competitive environment.

 

Along the same line, government has also signed agreement with the Bank of Industries (BOI) in a N750 million package that will provide credit facilities to industrialists in the agro-allied sub-sector. Already, government has provided N250million and the BOI has matched this with another N500million of its own and has provided guidelines for prospective investors, wishing access the funds for various projects. I hereby seize this opportunity to appeal to our people to take advantage of this unique opportunity.

 

I am also glad to inform the House that a branch of the Nigerian Stock Exchange would be established in our State in the coming year. This will bring us in league with only very few cities outside Lagos with an active trading floor. The direct and indirect economic benefits of this are indeed enormous.

It is our firm belief that the totality of all this, and other opportunities that may arise in the coming year, will set the stage for rapid economic growth in our State along the lines that we have envisaged in achieving prosperity, and eliminating poverty.

 

Transportation

Mr. Speaker, government is aware that increased economic activities will also bring more pressure on existing road networks in the State and if not properly planned, this may lead to traffic congestion, with its counter-productive consequences.

 

Therefore, in the coming year, my administration will make efforts towards completing all existing expansion projects on roads as well as embark on new road expansion networks across the State, and especially in the metropolis.

 

Quite significantly, we intend to move more rapidly to complete the major road projects spread across the 3 Senatorial districts of the State at a cost of N1.4 billion while the new expansion is expected to take the sum of N4.5 billion.

 

One of the new major road projects is the proposed fly-over at the Post-Office area, which is targeted at easing the perennial traffic congestion of traffic on that axis and providing ease of movement for commuters and motorists. This is in addition to the aesthetic value of such project, which no doubt will represent another landmark in the development of our city. Others are the extension of the dualisation from Asa Dam road to Offa Garage, and Offa Garage to Ola Olu Hospital; Offa Township road, Patigi-Rogun-Pada road; Owu Water Falls road and Oko-Idofin-Igbana-Idofin-Odo Ase road.

 

While we embark on new road projects, government also places a high premium of maintaining existing road networks in the State. Consequently, the Kwara State Road Maintenance Agency (KWARMA) shall be strengthened to play execute its mandate of maintenance and general improvement of existing State roads so as to make them functional and motorable all year round. We also intend to establish a special unit dedicated to opening up of new roads in the rural areas. Funds for the necessary equipment of this proposed unit has been provided for in the budget being proposed.

 

The State Government, in line with the yearnings and aspirations of her teeming populace has put a number of measures in place not only to sustain the current tempo of road construction and rehabilitation in the State, but also to improve on the present road network as a tool for enhancing commercial activities in the State.

 

One of the major innovative efforts we have made in the preceding year is to develop the aviation sub-sector in our State. We are quite happy with the progress we have made in this regard.

 

One key area that we have also focused on, and which we intend to give great attention in the coming year, is the development of the cargo port. Our desire is to make our State capital the cargo hub for Nigeria. The economic benefits of this are indeed enormous and will further add a lot of verve to our economic development efforts. A strategic linkage to establishment of the cargo hub is the plan we have in the coming year is to establish a trailer park in the State. This will not only complement the cargo port project, but will also boost primary economic activities in the State.

 

SOCIAL SECTOR AND HUMAN CAPITAL DEVELOPMENT

Mr. Speaker, we recognize the human person and both the means and the ends of development anywhere. Therefore, the coming year will witness increased attention to this sector which is so critical to the purpose of government.

 

Health

Our cardinal policy in the health sector remains valid. This is to continue to broaden the access that our people would have to healthcare delivery, both in terms of availability and affordability.

Consequently, we shall continue to make investments in development of primary and secondary healthcare facilities across the State. In the year 2008, the sum of N300,000,000 million has been set aside to complete the rehabilitation of 3 General Hospitals at Okuta, Omu-Aran and Ilorin, while the sum of N210,000,000 million is earmarked for other health care centers across the State.

 

The success we have recorded with the pilot project of our Community Health Insurance Programme in Shonga has encouraged us to drive towards expansion of this unique programme to other parts of our State. In the coming year, we intend to kick off the Community Health Insurance Programme in Afon, Asa Local Government Area. This programme is very important to my administration because we believe that our healthcare system can only be adjudged efficient if we are able to make medical services available to our people whenever and wherever they may need it no matter their economic status.

However, while we step up efforts in providing healthcare to those who may need it, we shall also in the coming year, strengthen our capacities in the area of preventive medicine, through surveillance and advocacy. This is the only way we can stem the tide of such deadly scourges like malaria, HIV/AIDS and tuberculosis among others.

 

Education

Mr.Speaker, Honourable Members, the year 2007 has brought to us a heightened awareness of the enormity of the challenges we face in the education sector. In the course of the year, we introduced a number of reform efforts which we believe will turn around the dwindling fortune of our education, especially at the primary and secondary level.

 

Therefore, our expenditure in the coming year will be targeted at implementing the education reform agenda. Government intends in 2008 to improve general schools infrastructure, provide instructional materials, improve the quality of teaching and improve administration of schools. We shall provide necessary incentives to teachers, but we will also ensure that our teachers deliver on expectations of parents and government.

 

Specifically, the sum of N650, 000,000 million has been provisioned for comprehensive renovation of selected schools across the State. Similarly, the sum of N445, 000,000 shall be expended on the renovation of classrooms across the State. We have also earmarked the sum of N600, 000,000 million being counterpart fund to enable us draw down on the Federal Government's UBE intervention fund.

 

I am pleased to note that we have concluded arrangements with a commercial bank to provide the sum of N1billion each for both secondary and primary school teachers who may require loans for their personal purposes. This will provide rare incentives that we hope will translate to better performance from our teachers.

 

In the outgoing year, we also commenced plans for the establishment of the Kwara State University. This is a major step in expanding our children's access to quality tertiary education. Government had set up a committee to examine the feasibility and modalities for the establishment of this university. In anticipation of the committee's recommendation we have earmarked the sum of N500, 000, 000 in the year 2008 to enable us take off with the project soon.

 

Mr. Speaker, I am convinced that the only way we can guarantee enduring development for our State, and indeed our country is to ensure quality education for our children. My administration is resolved to make this goal, its major pre-occupation in the coming year.

 

REGIONAL DEVELOPMENT

Water Supply

Apart from our desire to continue to provide potable water for our people, government is also committed to providing water for agricultural use. For a State that is committed to agriculture at our level, it is obvious that we can no long continue to rely on rain water for farming if we must achieve optimum productivity. Consequently, development of irrigation facilities will be a main area of focus in the coming year. Towards this end, a sum of N500, 000,000 is earmarked for the development of irrigation facilities in the State in the year 2008.

 

In the area of domestic water supply, Government is planning to consolidate on the gains of 2007 Fiscal Year. Hence, the sum of N710, 000,000 million is set aside for rehabilitation and expansion of existing Urban water facilities in the State. Similarly, N300, 000,000 million has been earmarked for the Expansion of Urban and semi-Urban Waterworks across the State as well as to connect the waterworks to the national grid so as to ensure constant power supply. Our efforts in rural water supply under the Rural Water Turnaround Programme will also continue in the coming year. We believe that all these efforts will combine to move us close to realizing our vision of making water available to the generality of our people.

 

Power Supply

In the outgoing year, my administration was able to facilitate the commencement of a Federal Government power project in Ganmo. This step-down power project upon completion will virtually solve the epileptic power supply problem to our State. Even though this is a Federal Government project, it is our desire to undertake the completion of this project in the coming year in order to bring the much needed respite to our people currently living under the agony of poor electricity supply.

 

Another noteworthy progress that we have made in the year 2007 is the introduction of solar powered streetlights to some of our major streets. We intend to intensify our efforts in this regard in the coming year, when we intend to expand the street light to NNPC pipeline road, Kamaludeen-Adeta road, Sokoto road, Gaa-Akanbi road, Lajorin and Basin road in 2008 Fiscal year.

 

GENERAL ADMINISTRATION

Mr. Speaker, while we have made efforts in the past to provide monetary incentives as well training and capacity building for our civil servants, one major area that is still begging for our attention is the physical working environment of our civil servants. Therefore in the coming year, we intend to undertake major expenditure to give our state a befitting secretariat complex that will be a pride to our civil servants. However, this would be without prejudice to our commitment to providing the necessary training and exposure, especially in the area of ICT, to ensure that our public service can stand up to the challenges of a rapidly changing economy.

 

CONCLUSION

Mr. Speaker, Honourable Members, I wish, at this juncture express my sincere gratitude to you all for being worthy partners in our efforts to bring development and progress to our State over the years. I believe that all that we have achieved has been made possible largely to the harmonious relationship that has existed between this House and the Executive. It is my hope that we shall sustain this in the years ahead so that we can bring even more progress to our State.

I also wish to seize this opportunity to thank all the good people of Kwara State for your abiding support. And most importantly, for sustaining and keeping the peace that we are renowned for, and which has provided the conducive environment for all that we have achieved together in the last four years. I enjoin us to sustain the support we have given to our government so that we can all in the end stand up and share in the glory that it has pleased God to give to our State.

Thank you and God bless.