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Delta State 2012 Budget Speech

April 8, 2015

Delta State 2012 Budget Speech
Rt. Hon. Speaker,
Honourable Members,

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

Mr. Speaker, we have very good reasons to envision that this budget is capable of continuing to 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 initiate changes 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 otherwise known, as building Delta Without Oil. This is anchored on our three point agenda of Peace and Security, Human Capital and Infrastructure Development.

Mr. Speaker, it has been a tall order and a herculean undertaking. But I am proud we did not falter. 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 State that will in future depend on the creativity and resourcefulness of her people is emerging. We now have a Delta that is attractive enough for huge investments from across the world. 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 from heaven. All these point to one thing: not long from now, we shall see a Delta whose development will not be tied to Federal Allocation for survival and progress.

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

Mr. Speaker sir, Honourable members, I cannot fully catalogue the tangible and intangible progress that Delta State has made since we came on board. It is important to note that the Executive branch cannot take the credit alone. We did not do it alone. It is due to our collective efforts. I must therefore, commend the House for being a worthy partner in advancing the visions of this administration and Delta State as a whole.

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

Mr. Speaker sir, Honourable members, to make the great economic leap we desire and to cover 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 the monthly Allocation cannot meet our needs. Funding from the monthly Allocation cannot support our strong determination to reduce poverty. We simply have to re-strategise and improve our internally generated revenue without putting unbearable burden on our people. We must block areas of leakages in the system, we must minimize excessive expenditures. We must remain committed to the strategy of diversifying the economy of the State. We must continue our huge investment in agriculture to create wealth and employment. We must continue to improve the atmosphere of peace and security to attract commerce.

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 Revenue Consolidation Law. Remarkably the implementation of the law has started to yield concrete results with significant increase in the Internally Generated Revenue. I will highlight details during the review of the 2011 budget performance in the course of this presentation. Wealth creation is a single most important challenge of this administration. We must create more wealth and generate more employment for our increasing youth population through the diversification of the State’s economy. In this regard, we have put in place the necessary institutional framework for the socio-economic and infrastructural development of the State for attracting private sector participation in key areas.

A key anchor of our diversification strategy is the deliberate stimulation of industrialization of 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. The idea is to attract Foreign Investors to the State. Currently, oil revenue contributes 90% of the GDP 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 state than oil. It is for this reason; I want to use this opportunity to once again call on Foreign and Local Investors to take advantage of the Special Economic Zones being put in place by this administration to invest in Delta State.

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

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 Petroleum Gas bottling and distribution plants and a Central Processing Facilities (CPF). These projects herald the takeoff of Mr. President’s Gas Revolution Agenda. We sincerely thank him for supporting the location of these investments in Delta state.

There are also strong expressions of interest by local and foreign investors in the Warri Industrial Business Park (WIBP). Even with these expressions of interests we are not resting on our 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 and growth in small and medium scale enterprises.

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

COMPONENTS OF THE 2011 BUDGET
In the 2011 fiscal year, a budget of N361.90bn (three hundred and sixty-one billion, nine hundred 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 and twenty-seven billion, two hundred and twenty million naira). The profile of the 2011 budget was as follows:
S/N Revenue Profile Sources Approved 2011 Budget % Appropriation
i Internally Generated Revenue 34,601,446,623 9.56
ii Statutory Allocation Including Mineral Rev. Derivation 179,174,871,560 49.51
iii Value Added Tax 9,927,756,200 2.74
iv Other Capital Receipts 138,200,000,000 38.19
Total 361,904,074,303 100

(B) EXPENDITURE
S/N Expenditure Profile Approved 2011 Budget % Appropriation
I Recurrent Expenditure 134,674,349,420 37.21
Ii Capital Expenditure 227,229,724,963 62.79
Total 361,904,074,303 100

YEAR 2011 REVENUE BUDGET PERFORMANCE
(JANUARY 2011 TO SEPTEMBER 2011)
The State Government, during the nine months of January to September, 2011, recorded a total 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 expected proportionate receipts ofN271.42bn. Out of this amount, the sum of N139.04bn (one hundred and thirty-nine billion, forty million naira) was received as Statutory Allocation from the Federation Account. The amount represents 103.47% performance of the proportionate estimate of N134.38bn (one hundred and thirty-four billion, three hundred and eighty million naira). 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 projected receipts 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 hundred and 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 was received during the period under review. However, proceeds from the Development Bond were received in the last quarter of this year, 2011. The breakdown of the revenue receipts from individual 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 94.58
Ii Statutory Allocation Including Mineral Rev.Derivation 179,174,871,560 134,381,153,670 139,047,644,025 103.47
iii Value Added Tax 9,927,756,200 7,445,817,150 6,298,516,378 84.59
Sub total 223,704,074,383 167,778,055,788 169,891,289,939 101.26
Iv Other Capital Receipts 138,200,000,000 103,650,000,000 – 0.00
Total 361,904,074,383 271,428,055,788 169,891,289,939 62.

The above revenue receipts represent a 12.85% increase on N150.54bn (one hundred and fifty billion, five hundred and forty million naira) recorded for the corresponding period of January 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-seven million naira) received for the same period in 2011. It is important to note, however, that there is 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 in 2010, this represents 51.84% increase. This perhaps, can be attributed to the conscientious effort of government owing to the passage of the revenue bill, which gave an autonomous status and other incentives to the State Board of Internal Revenue.

EXPENDITURE (JANUARY TO SEPTEMBER, 2011)
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 on recurrent 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-seven billion, nine hundred and seventy million naira) or 111.49% accounted for Personnel and Overhead costs as against the proportionate budget ofN69.934bn (sixty-nine billion, nine hundred and thirty-four million naira). The sum of N9.97bn (nine billion, nine hundred and seventy million naira) was spent on Pension and Gratuities, Statutory Salaries, 10% Statutory Allocation 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) for the period. This represents a performance of 32.10%.The breakdown is summarized below:
Recurrent Expenditure Approved 2011 Budget Proportionate Budget Jan-Sept, 2011 Actual Revenue Jan – Sept, 2011 % Per
i Personnel Costs 45,533,777,699 34,150,333,274 48,363,618,535 141.62
ii Overhead Costs 47,712,864,840 35,784,648,630 29,609,141,738 82.74
iii Con. Rev. Charge 41,427,706,881 31,070,780,161 9,973,985,157 32.10
Total 134,674,349,420 101,005,762,065 87,946,745,430 87.07

The sum of N48.36bn (forty-eight billion, three hundred and sixty million naira) was spent on 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 of N17.98bn (seventeen billion, nine hundred and eighty million naira) or 59.20% over the sum of N30.37bn (thirty billion, three hundred and seventy million naira) spent on personnel cost for the corresponding period in 2010. The increase in personnel cost is consequent on the upward review of wage bill of Delta State workforce. The deficit however, has been provided for in the 2011 budget re-alignment.

The sum of N227.22bn (two hundred and twenty-seven billion, two hundred and twenty million naira) was budgeted for Capital Expenditure. During the year, actual expenditure for the 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 and twenty million naira), representing a budget performance of 34.08%. It is important to note that out of the actual capital spending of N58.07bn (fifty-eight billion naira), DESOPADEC accounted for N21.85bn (twenty-one billion, eight hundred and fifty million naira). This represents 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 Actual Revenue Jan – Sept, 2011 % Per
I Economic 68,642,401,721 51,481,801,291 15,529,900,939 30.17
Ii Social 39,853,916,768 29,890,437,576 3,996,309,079 13.37
Iii Environmental 61,082,444,392 45,811,833,294 9,482,005,362 20.70
Iv General Administration 22,150,962,082 16,613,221,562 7,212,837,218 43.42
V DESOPADEC 35,000,000,000 26,250,000,000 21,857,484,429 83.27
Vi Contingency Fund 500,000,000 375,000,000 – 0.00
Total 227,229,724,963 170,422,293,722 58,078,537,026 34.08

YEAR 2012 BUDGET
Mr. Speaker, distinguished members of the Delta State House of Assembly, I have just presented to you a concise review of the implementation of the 2011 budget. I shall therefore proceed immediately to present to you, the budget for the 2012 fiscal year.

Mr. Speaker, we have articulated a budget proposal of N383.39bn (three hundred and eighty-three billion, three hundred and ninety million naira) for the 2012 fiscal year. The amount is made up of N169.82bn (one hundred and sixty-nine billion, eight hundred million naira) 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.

The year 2012 budget proposal shows an aggregate increase of N21.08bn (twenty-one billion 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)

The 2012 budget is predicated on result oriented strategies. Government is moving away from the usual budget practices of mere allocation of figures to a practical, structured, and robust approach that can sustain development. This Budget, therefore, is crafted to address the problems that have confronted us over the years.

Mr. Speaker, Members of this Honourable House, the key objectives of Year 2012 Budget would be geared towards poverty reduction and empowerment of our people: we want to increase access to quality healthcare, social service and infrastructure targeted towards the attainment 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; we want to foster the generation of more employment opportunities for our teeming youths; we want strong and diversification of the economic base of the State.

SOURCES OF FUND
The main sources of funds for the 2012 budget are:
Sources Proposed Budget 2012 Percentage %
I Internally Generated Revenue 51,447,050,581 13.42
Ii Statutory Allocation Including Mineral Rev. Derivation 170,000,000,000 44.34
Iii Value Added Tax 9,991,239,535 2.61
Iv Other Capital Receipts 151,951,842,222 39.63
Total 383,390,132,338 100.00

INTERNALLY GENERATED REVENUE
With the passage of the Delta State Internal Revenue Consolidation Bill 2009, the Board of Internal Revenue, will continue to enjoy government support and will be strengthened to improve its tax administration machinery. Some strategic measures we took to support the BIR in revenue mobilization include granting it autonomy; reorganization of its management and administrative structure; automation of the board’s collection mechanism; maintaining a good Database Management System (DBMS) and Tax Administration; collaborating and interfacing with 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) from Internally Generated Revenue in 2012 as against the sum of N34.60bn (thirty-four billion, sixty million naira) under the 2011 budget. The IGR estimates for 2012 is higher than the 2011 approved estimates by N16.84bn (sixteen billion, eight-four million naira) or 48.68%. This optimism is derived from the measures we have put in place. I therefore sincerely appeal to all Deltans, corporate bodies and other residents in the State to faithfully meet their civic obligations to the State without coercion.

MONTHLY ALLOCATION
Monthly Allocation from the Federation Account is the principal source of revenue of government. We have proposed the sum of N170bn (one hundred and seventy billion naira) in the 2012 draft budget as Statutory Allocation, against the 2011 figure of N179.10bn (one hundred 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
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 hundred and thirty eight billion, two hundred million naira) approved for the 2011 budget. The second tranche 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 proceeds are expected to generate revenue directly and indirectly, and hence will increase IGR and support the servicing and repayment of the debt. We are hopeful that they will also attract Foreign Direct Investments (FDI) which will also in turn increase our revenue base. We will explore more credible ways of managing the deficits. A realistic approach is the re-alignment of 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 from our internally generated revenue sources and hopefully from the statutory allocations from the federation accounts.

RECURRENT EXPENDITURES
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 (eighty billion, 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-five billion, five hundred and thirty-three million naira) by N33.03bn (thirty-three billion, thirty million naira) or 76.93%, while the overhead costs of N48.68bnproposal for 2012 is higher than the 2011 overhead costs of N47.71bn by N 976.23m or 2.05%. On the other hand, the Consolidated Revenue Fund Charges ofN40.56bn (forty billion, five hundred and sixty-nine million 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%. The recurrent expenditure estimates is summarized hereunder:
Items Proposed Budget 2012 Percentage %
I Personnel Costs 80,564,125,769 47.44
Ii Overhead Costs 48,689,103,852 28.67
Iii Consolidated Revenue Fund Charges 40,569,967,479 23.89
Total 169,823,197,100 100

Mr. Speaker, Members of this Honourable House, the increase in personnel costs is predicated on payment of the minimum wage promised to workers by this administration. The 2012 proposal has a 25% mark up of existing personnel costs actual projections for this year, to accommodate promotions, conferment of incremental credits and other staff emoluments. This increase as you will observe, has impacted hugely on the overall budget size.

CAPITAL EXPENDITURE ESTIMATES

The proposed capital expenditure estimates for 2012 is N213.56bn (two hundred and thirteen billion, five hundred and sixty-sixty million). The dominance of capital estimates over recurrent in the past years demonstrates this administration’s commitment towards substantial infrastructural 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 is due mainly to the desire of this administration to avoid over ambitious capital budget which cannot 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 34.16
Ii Social 45,310,654,218 21.22
Iii Environmental 37,807,522,376 17.70
Iv General Administration 22,004,232,673 10.30
V Delta State Oil Producing Areas Dev. Commission 35,000,000,000 16.39
Vi Contingency 500,000,000 0.23
Total 213,566,935,238 100

SECTORAL HIGHLIGHTS
Mr. Speaker, Sir, Honourable members of this House, let me now highlight some salient areas of the capital proposals.

AGRICULTURE
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.

To achieve this, we have undertaken various programmes/projects in food and tree crops development, agricultural mechanization, agricultural credit, farm settlement scheme, communal farming, farm inputs distribution, livestock and fishery development, produce inspection, veterinary services, and the Youth Empowerment through Agricultural (YETA) programmes. We are also involved in some Federal and development partner-supported agricultural projects such as Root & Tuber Expansion Programme (RTEP), National Programme on Food Security (NPFS), Third National Programme on Fadama (FADAMA III), and Community Based Natural Resources Management Programme (CBNRMP)
Mr. Speaker, this administration will also build on its partnership with the private sector in the 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 be strengthened to be more productive. A key strategy for the 2012 fiscal year is the Cassava Development Initiative Programme driven by the Federal Government. To demonstrate our readiness to be part of this initiative, we have allocated the sum of N2bn (two billion naira) for the programme.

INDUSTRY
Mr. Speaker, Honourable members, one of the viable instruments we are using to reduce poverty and create a vibrant culture of entrepreneurship is the Delta State Micro Credit Programme. Through this Scheme, government is creating opportunities for our people who might otherwise be unable to access such facility. The micro credit programme has three attributes viz, empowering of the grassroots population, creating new wealth at that level and reducing unemployment in the productive age bracket. From inception in December, 2007 to May 2011, a total of 85,776 persons comprising 54,531 women and 31,245 men were empowered in various micro enterprises, this includes 411 persons under Delta Oceanic Micro Credit Scheme Account (DOMSA). This programme will continue to receive maximum attention 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.

Mr. Speaker, in the realization that the totality of the revenue receipts of government from all 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 Industrial Business Park (WIBP). Warri is on its way to being industrialized with the development of this initiative. The Park is conceived as one of the key strategies of government to diversify the state’s 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 will focus on the real sector of the economy—manufacturing. It will be environmental friendly and will provide a range of services for all types of enterprises on completion.

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

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

The Asaba International Airport has come on stream with limited commercial flight following the deployment of professional officers from NAMA, FAAN and NIMET. The Airport, which has a runway of 3,400m long and 60m wide was conceived, with the understanding that stable and reliable means of transportation forms an essential component of the 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 a Nigerian category “A” Airport in the State capital to cater for our air transportation needs. It will boost the socio-economic fortunes of the State as it will take advantage of the vast business opportunities within the State and across the Niger as businessmen would be able to travel and handle multiple business matters more effectively. Currently only two airlines are operating scheduled flights daily on the Lagos and Abuja routes. Several other airlines have indicated interest in operating at the Airport. On completion, it will have a maximum take-off weight of 630 metric tonnes vessels such as Boeing 747. Government has acquired additional land to develop 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 duty equipment. The sum of N4.0bn (four billion naira) has been provided for its completion in the draft year 2012 Budget.

Further on air transportation, the provision of a second Runway and expansion of the existing one at Osubi Airport to enable it accommodate wide body aircrafts is another infrastructural transformation project being embarked upon by this administration to tap into the 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.

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 provide integrated road projects throughout the state. Also government has embarked on the construction of roads to various agricultural centres in Umeh, Mbiri and Illah to facilitate the evacuation of agricultural products to areas where they are needed.

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

In the 2012 fiscal year, government intends to increase the tempo of work on the various road dualization projects. To this end, Mr. Speaker, the sum ofN5.0bn (five billion naira) has been set aside for the Ughelli-Asaba Dual carriageway, N2.0bn (two billion naira) for the Ugbenu –Koko road, N3.94bn (three billion nine hundred and forty million naira) for the Effurun- Osubi-Eku Road, N5.0bn (five billion naira) for the TransWarri-Ode-Itsekiri Roads and bridge among other crucial road projects. The Direct Labour Agency is being repositioned as an intervention agency to carry out sustained maintenance of roads throughout the state.

Riverine transportation will be given a further boost in the coming year as the State government 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 the riverine communities in the State. Also, government has built landing Jetties in some riverine communities to ensure safety and facilitate the evacuation of people and goods from the communities.

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 township roads across the State. We will ensure the construction and maintenance of traffic route reflection billboards, solar powered traffic light/signals and road markings. These safety measures will reduce the incidence of road traffic accidents. Government will continue to improve on the successes so far recorded in the Delta mass transportation scheme in which 500 air-conditioned buses and taxi-cabs were acquired and distributed to ease movement of people and 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
Government will direct its investments efforts towards the generation of more employment while encouraging direct private investments. The State government will do everything to ensure the success of the Koko Export Processing Zone. The Free Trade Zone will boost entrepreneurship, because normal trade barriers such as tariff and quotas are eliminated and bureaucratic requirement are reduced. It is expected that tax break and other additional incentives will be part on the offering to stimulate real economic growth, which in turn, will create 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.

I am pleased to inform this distinguished House that Government is in partnership with a private investor, Delta Leisure Destination Park (DLDP) to develop a world class tourism resort in the state. The project is divided into two components. The first one, located at Oleri in Udu 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, restaurants of international cuisines, and world class recreational facilities. The other component of the project is the Wildlife Park in Ogwashi uku. Both projects when completed will have employment capacity of 6,000 people as well as increase our internal revenue generation. The sum of N1.2bn (one billion, two hundred million naira) is allocated to the DLDP as government investment into the project for the 2011 fiscal year.

EDUCATION
Education as we all know remains the bedrock of any development. To that extent qualitative education for Deltans will remain a major priority of this government. We will continue with systematic improvement of the educational infrastructure in the State. We will continue to ensure regular rehabilitation and renovation of existing schools. This administration has commenced the construction of model schools across the State. No child will be denied access to fair opportunity to proper education, therefore this administration will continue with its policy of equitable distribution of teachers to the urban and rural/riverine areas. Although we have returned some schools to their original owners – the Missionaries, we will not shirk from our responsibility of close inspection, monitoring and evaluation of teaching and learning in 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 billion naira) is specially provided for the upgrade of Primary and Secondary schools in the state.

On higher education, we are aware of the educational needs of our people, this government will continue to ensure the provision of efficient service delivery and quality assurance in the educational system in the areas of teaching, learning and research. To address inadequate admission into our schools, government will ensure that within the next five years, the carrying capacity of State-owned tertiary institutions is increased to accommodate at least 25% of the youths of Delta State, seeking admission. This, we will achieve through physical and infrastructural 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 infrastructural requirements aimed at making the atmosphere in our tertiary education more clement. A total sum of N7.50bn (seven billion, five hundred million naira) is allocated to Higher Education for 2012 fiscal year.

HEALTH
Today, Mr. Speaker, we can proudly say that we have an outstanding record in our healthcare services, because of our belief that health is wealth. With this track record we will strive to do more for our people. We will continue to pursue health reforms to ensure effective healthcare 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 health delivery system by shifting emphasis from curative to preventive health care.
Our healthcare support to pregnant women and under five children have given them great hope, it has saved so many lives and eased burden on the vulnerable in our society. More women now give birth in the same hospitals where they were registered due to increasing awareness of the programme. It is a legacy to our people which they cherish so much. In this regard, Government will intensify effort to equip existing hospitals and Primary Health Care centres to deliver more efficient services.

Mr. Speaker, Honourable members of the House, another area of intervention by this administration is the financial medical assistance provided to indigent Deltans who are plagued with diseases and conditions In the last four years, government gave such financial assistance to a large number of Deltans many of them were sponsored to seek medical attention outside Nigeria. We are determined to continue with these programmes, that’s why a total sum ofN1.10bn (one billion, one hundred million naira) is set aside for that.

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 a model learning institution for all cadres of the health professionals and as a referral centre per excellence 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 and outside the country. A total sum of N3.00bn (three billion naira) is allocated to the Health sub-sector in the 2011 budget.

ENERGY
Mr. Speaker, in keeping with our set objectives of realizing our goal of diversifying the State economy and the three-point agenda that targets the socio-economic and industrial transformation 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.

In this connection, this administration will continue to give priority attention to the completion of on-going power generation, transmission and distribution projects. We will continue to fund the operation and maintenance of generator and solar powered streetlights that have 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 is determined to collaborate with other States in the region to acquire the unbundled/privatized PHCN assets, as soon as the details are worked out.

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

ENVIRONMENT
Since assuming office this administration has taken a leading role in promoting measures to combat climate change and environmental degradation. Our collaboration with several global organizations, institutions and sub-national governments have secured us recognition and strategic partnership as a climate friendly State committed to promoting environmentally sustainable development.

One of the main successes of our climate change campaign was the commitment we extracted from one of the International oil companies, Chevron, following the pressure we mounted and with the active support of the government of California in the US, to commit to ending gas flare by the end of 2011. In 2012, we will continue with our climate change initiatives because of the enormous opportunities available, opportunities to end pollution, to regenerate our environment, to create green jobs and to attract green investments.

The problem of flooding, shore and coastal erosions are on the increase, which makes it imperative 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 relent in 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 vegetation encroachment, 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 a matter of priority, while link drains shall be systematically and progressively constructed and linked to the axial drains.

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

YOUTHS AND SPORTS DEVELOPMENT
Mr. Speaker, distinguished Honourable members, Delta State has achieved so much in Sports Development, hence this administration’s continuous drive to sustain and even exceed the high level of sporting performance exhibited by our Sports men and women, both at national 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. By the special grace of God we shall defend and sustain these victories.

In the area of youth development, government will continue to collaborate with development agencies to positively engage the youths and provide them with basic skills that would put them in good position for self employment and legitimate means of livelihood. The continuous establishment of skills acquisition centres across the State are avenues for our young people to learn trades that will enable them become economically self-reliant. The State government is working assiduously to ensure that the construction work at the Multipurpose Youth Centre, Egbokodo, is completed quickly. We are appropriately positioning this centre to reintegrate 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.

The rights and protection of the vulnerable and less privilege in our midst remains a source of concern to government. For this reason we have taken far-reaching steps towards passing the Child’s Rights Law to fast-track the protection of our children’s rights. To further strengthen this, Mr. Speaker, I have approved the inauguration of the State’s Child’s Rights Implementation/Protection Committee for the enforcement of provisions of the law.

SPECIAL INFRASTRUCTURE DEVELOPMENT
To fast track infrastructural development in the state, Mr. Speaker, this administration created a Directorate for Special Infrastructure. Some of the special projects are being financed with the Delta State Development Bond. With this strategy, we hope to have accelerated infrastructure 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) Remodeling 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
In the last four years, the State government has been working in collaboration with the Federal Government to advance the attainment of the goals of MDG. Government has consistently 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 hundred million naira) is set aside as the State’s counterpart fund for the attainment of the Millennium Development Goals.

DELTA STATE OIL PRODUCING AREAS DEVELOPMENT COMMISSION (DESOPADEC)
Mr. Speaker, you will recall that this administration took far reaching steps towards the reorganization/re-structuring of DESOPADEC in the areas of fiscal management, and policy implementation. This was to make it an efficient and effective intervention agency. With this effort, the Commission is well positioned, to discharge its assigned roles creditably.

In accordance with the law setting up the Commission, therefore, we have set aside for the 2012 fiscal year the sum of N35billion (thirty-five billion naira) representing 50% of projected derivation revenue receipts from oil accruable to Delta State for the development of oil producing communities. About90% of the allocation to the Commission will be channeled towards infrastructural development in the oil producing communities focusing on completion of ongoing projects, youth and women development, rehabilitation and reconstruction of schools, rural health care, rural roads, housing, and electrification.

BUDGET IMPLEMENTATION
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 all levels of governance. We will monitor closely the activities of departments of government to ensure the realization of the goals of this budget. We will continue to strengthen relevant institutions in charge of government businesses to improve on the skills and competencies of their 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 to achieve the Budget objectives.

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 report on their physical and financial progress in implementing the Budget on quarterly basis. The Economic Intelligence Unit (EIU) in the Ministry of Economic Planning will be strengthened in the area of price intelligence, expenditure control and tracking to ensure that government gets value for money spent in any transaction, while at the same time adhering strictly to due process.

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

CONCLUSION
Mr. Speaker, members of this Honourable House, I cannot end this presentation without reminding us yet again that no matter what tempting figures we set out in the budget proposals for 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 between democratic stability and economic development is worth stressing and I count on your continuous support of government policies and programmes.

Please permit me therefore, Mr. Speaker, to once again convey the most sincere gratitude of the Executive Arm of government to you all in the area of ensuring the even development of our State. Your supportive role, understanding and frankness have helped to guarantee the very smooth take-off of the second tenure of this administration. I salute you all.

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 not have all the answers. We, therefore, seek the support, cooperation and collaboration of all citizens in the state. We have encountered difficult challenges these past few years. We are grateful to God Almighty for giving us the strength and wisdom to face the challenges. I wish to 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 can face the future with courage as we all join hands to move Delta State to greater heights.

Mr. Speaker, I wish to acknowledge, with deep gratitude, the prayers and goodwill of all Deltans towards this administration and my humble self. Mr. Speaker, allow me to also thank members 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.

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

Office of the Governor,
Government House
Asaba.

December, 2011.
Gov Emmanuel Uduaghan

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