Presentation of 2010 Budget Proposal to Akwa Ibom State House of Assembly

ADDRESS BY HIS EXCELLENCY THE EXECUTIVE GOVERNOR OF AKWA IBOM STATE, CHIEF GODSWILL OBOT AKPABIO, ON THE OCCASION OF THE PRESENTATION OF THE 2010 BUDGET PROPOSALS TO AKWA IBOM STATE HOUSE OF ASSEMBLY

The Right Honourable Speaker
Honourable Principal Officers
Honourable Members of Akwa Ibom State House of Assembly

INTRODUCTION

It is with a profound feeling of gratitude that I address you today and present for your kind consideration and approval, the Estimates of Revenue and Expenditure of Akwa Ibom State Government for the 2010 fiscal year. In performing this sacred constitutional responsibility, I commend the leadership and honorable members of this hallowed chamber for standing by us, believing in us and partnering with us so far in our patriotic efforts to transform our state.

Your unflinching support and cooperation have taken us to great heights of achievement, and we have proved that together we can surmount any challenge. What we achieved together in the past, gives us the hope and confidence that the process of the socio-economic transformation of our dear state is irreversible.

REVIEW OF THE PERFORMANCE OF THE 2009 BUDGET

It is important to consider the performance of our 2009 Budget before focusing on the 2010 Proposals. The 2009 budget as originally approved provided for a total budget size of N208.209 billion. This was however revised during the year to N283.813 billion with a sum of N75.604 billion approved in the 2009 Supplementary Budget. The 2009 Revised Budget outlay of N283.813 billion was made up of N43.094 billion for Recurrent Expenditure while N240.719 billion was for Capital Expenditure, representing a ratio of 1:6.

As at September this year, the actual recurrent revenue collected amounted to N126.097 billion as against the revised approved estimate of N176.646 billion. The breakdown of the receipts shows that N10.264 billion was realized from Internal Sources; N13.092 billion from Statutory Allocation; N4.213 billion from Value Added Tax (Vat) and N98.528 billion from Derivation.

In the area of Expenditure, the sum of N29.505 billion was spent during the period under review on recurrent services, namely: Personnel Costs N14.295 billion; Overhead Costs N6.415 billion; Public Debt N5.794 billion and Pensions and Gratuities N3.001 billion;

On capital projects, the sum of N120.452 billion was spent between January and September this year. Our Capital Budget Performance is described in detail in the Budget Implementation Report, which has been prepared to facilitate your consideration of the 2010 Budget.

THE 2010 BUDGET

Mr. Speaker and Honourable Members, year 2010 beckons with great reasons for optimism. Our resource base is expanding. We have improved on our capacity to deliver on developmental programmes. We have decisively confronted the challenges of poverty and produced tangible evidences of the economic empowerment of our people.

We are ending year 2009 on a bright note with the forthcoming inauguration of 650 people-oriented development projects spread across the 31 Local Government Areas of the State. These projects cut across education, health, mini-water schemes, electrification, and skill acquisition centres. One thousand, six hundred (1,600) of these projects have been completed while 810 of them have already been commissioned. We have brought government to our rural areas, and bettered the lot of our people.

The New Year promises to be an interesting year. The world is breaking loose from the clutches of the economic meltdown. But we were on top of the meltdown last year and we will keep on riding every storm in 2010 and focus on the completion of all ongoing projects and programmes – thus consolidating the gains recorded in all sectors during the past two years. The 2010 budget is therefore a Budget of Consolidation.

POLICY THRUST AND OBJECTIVES

The policy thrust of the 2010 Budget is predicated on the completion of all on-going projects, improving basic infrastructures (power and transportation), security, development of human capital and enhancing services in education and healthcare with a view to not only improving the living standard of our people, but also creating employment opportunities.

The policy objectives of the 2010 Budget include:

- The completion of all ongoing projects, in all sectors of the State’s economy.

- The development of other internal revenue generating sources in the State Maritime Coastal and Inland Water Ways; and the utilization of the improved land administration reforms in the State to harness the revenue on landed properties.

- The maintenance of an effective and efficient cash management financial model to ensure effective deployment of State resources to areas of priority.

- The development of the Ibom Industrial City to complement our efforts in the creation of enduring structures for employment generation.

- The pursuance of the Public Private Partnership Investment Strategy in order to enhance our revolutionary efforts in the Agricultural Sector. This would hopefully ensure food sufficiency and the Creation of Employment.

- The development of an efficient and sustainable micro-credit framework, as part of our wealth creation strategies, for the sustenance of small and medium scale enterprises and employment generation in the State.

- The completion of the Cargo and MRO facility of Ibom International Airport. This we believe will lead to increased foreign exchange revenue from airplane maintenance and other aviation services.

- The rehabilitation of our health institutions and the provision of additional health care facilities and services to guarantee a healthy populace.

- The expansion of facilities to cope with increased school enrolment and the provision of teaching aids in public schools (i.e primary and secondary) to provide the needed support for the Government Policy of Free, Compulsory and Qualitative Education.

- The development of agriculture through the supply of improved agricultural inputs, credit and extension services.

- The provision of durable and affordable housing in designated urban centers in the State through the construction of 1,500 Housing Units across the 3 Senatorial Districts of the State in the First Phase.

- The promotion of youth and women empowerment as well as the protection of children and other vulnerable groups in the society. The creation of a peaceful and safe society through effective security network in the State.

- The enthronement of best practices in all spheres of governance as an abiding principle of public sector administration.

- The expansion and diversification of the resource base of the State’s economy through the encouragement of Public, Private Partnership.

IMPLEMENTATION STRATEGIES

The State Government shall adopt the following strategies and measures in 2010 in order to realize the above objectives;

(i) Pay priority attention to the completion of all ongoing projects in the key sectors of the State economy;

(ii) Execute and commission more projects as defined in Akwa Ibom State Economic Empowerment and Development strategy (AK-SEEDSAK – VISION 2020) and sustain the ongoing economic reforms in conformity with the AK-SEEDS requirement;

(iii) Strengthen the industrial base of the State through the setting up of new industries in the oil and gas, information technology as well as the agro-industrial sectors, and the provision of conducive environments for rapid industrialization.

(iv) Attract potential investors and donor agencies to participate in the relevant and key sectors of the State economy and undertake robust human Capacity development.

(v) Expand and improve Health-Care Delivery at Primary and
Secondary levels

(vii) Sustain Free and Compulsory Education, including provision of Educational facilities with emphasis on science and technology, as well as information and communication technology.

(viii) Empower women and youth through capacity-building and elimination of gender discrimination, and enforce Child Protection Laws;

(ix) Make the public service efficient and effective to meet the challenges of good governance.

(x) Ensure enforcement of law and order with particular -attention to fighting armed robbery, kidnapping and other social vices.

(xi) Expand our revenue base.

HIGHLIGHTS OF THE 2010 BUDGET SIZE

Our proposed budget outlay for the Fiscal Year 2010 is N288.834 billion as against the total revised appropriation of N283.813 billion for the 2009 fiscal year. Of this amount N48.727 billion is for recurrent expenditure, while N240.107 billion is for capital expenditure, representing a ratio of 1:5.

REVENUE

The total projected recurrent revenue for 2010 is put at N206.867 billion. This represents an increase of N30.211 billion or 17.1% over the 2009 corresponding estimates of N176.656 billion. The break down is as follows:

N (000)
Statutory Allocation - 24.000 billion
Derivation - 160.000 billion
Internally Generated Revenue - 15.338 billion
Value Added Tax (Vat) - 6.000 billion
Retained Revenue from Parastatals - 1.529 billion
TOTAL - - - N206.867 billion

RECURRENT EXPENDITURE

For the 2010 fiscal year, recurrent expenditure is estimated at N48.727 billion made up of N24.339 billion for personnel costs and N13.014 billion for overhead costs. Another sum of N11.374 billion is projected to cover consolidated Revenue Fund
Charges including Pensions, Gratuities and Public Debt.

CAPITAL EXPENDITURE

The total Capital Receipts and Expenditure for the year 2010 is estimated at N240.107 billion as against the corresponding revised figure of N240.719 billion for 2009, a decrease of N0.612 billion. The breakdown of the projected capital receipts shows that N158.140 billion will be transferred from the Consolidated Revenue Fund, while the balance of N81.967 billion is to be realized as follows:

Opening balance from 2009 Account - 30.000 billion
Internal /External Loans - 40.349 billion
Grants - 1.750 billion
Ecological Fund - 0.100 billion
Other Miscellaneous Receipts - 9.768 billion

SECTORAL ALLOCATION - (CAPITAL)

SECTORS ALLOCATION
(N) BILLION PERCENTAGE OF
ALLOCATION
(i) Economic
(ii) Social
(iii) Environmental and Urban Development
(iv) General Administration
74.830
47.066

53.744
64.467 31.2
19.6

22.4
26.8
Total 240.107 100

SECTORAL PROGRAMME
AGRICULTURE
The importance of agriculture cannot be over-emphasized. We hope to invest in agriculture in order to alleviate poverty among the people, attain food security and boost agricultural production. Our target is to boost production and the marketing of cash crops, staple foods, livestock and fisheries through institutional and infrastructural empowerment of private, small, medium and large-scale crop and lives stock farmers.

This will be done through technical assistance and supply of agricultural inputs. We also hope to encourage public/ private sector collaboration to achieve our set objectives. These are key strategies in our unremitting resolve towards starting a green revolution in our state.

We also hope to attract foreign investors to help in developing the capabilities and capacity of our local farmers. This strategy has started yielding result with the commencement of commercial rice production in Ibiono Ibom, Oruk Anam and Onna Local Government Areas by the Vietnamese farmers. This has opened up employment opportunities for thousands of our people.

In the area of fertilizer procurement and distribution, government approved and released N200 million this year. This led to the procurement and distribution of 11,030 metric tons of assorted fertilizers to farmers at subsidized prices. The Agricultural Development Project (ADP) provides technical assistance and extension services to farmers. Furthermore, the State is participating in the Federal Government’s Agricultural Extension Service Support Programme, in which 275 Akwa Ibom Youths have been selected for training with the promise of financial assistance to start agro-enterprises. There is also a seed multiplication programme through which 6,472 bundles of improved cassava cuttings under direct seed production and out growers scheme have been produced and distributed to farmers. In addition 68,400 seed yams, 150,000 cocoyam, corns and 650 bundles of sweet potato vines have been produced and distributed to farmers. The root and rubber Expansion Programme has also received a boost. Also 12.2 hectares of cassava have been cultivated and 24 replications of on-farm adaptive research trials have been established, all geared towards increased food production.

Also, the National Programme on Food Security (NPFS) in the State is seriously being pursued with 145 hectares of rain-fed farming, made up of maize, cassava and egusi, broilers and layers production, piggery and aquaculture located at Ukana Uwa, Ikot Osudu and Ikot Essien. 60 metric tones of fertilizer, 16.5 metric tones of organic manure and 65 metric tones of hydrated lime have been distributed to farmers to boost the programmes.

Government is also involved in the integrated farmers scheme (IFS) which is a strategy to reduce dependence on government for employment, create and sustain new jobs and reduce frustration amongst our young people. To this end the State government has released the sum of N402.7 million for empowerment of participants and has increased their loan package from N300,000.00 to N500,000.00 per participant. Community Plantation Development Scheme (CPDS) has led to another area of government intervention in tree crops production; 4,671 hectares of oil palm, 444 hectares of rubber and 408 hectares of cocoa have been planted in the State for the empowerment of farmers.

In addition, the State Government has put in place a new Agric Programme – the Accelerated Livestock Agriculture in the State, which would generate employment, reduce hunger and poverty as well as provide raw materials for industrialization. To this end, Government has approved N11.8 billion for the execution of this programme and it will be executed in phases and over 100,000 people are to be provided with economic opportunities to engage in large scale livestock production and aquaculture in the structured fish farm estates.

In 2010 Government intends to involve about 930 youths in the Integrated Farmers Scheme (IFS) and the sum of N400.0 million is budgeted for this programme. This would give the scheme a wider spread as well as reduce unemployment among the youths.

For all the agricultural programmes, a total sum of N4.835 billion has been proposed in the 2010 Budget.

EDUCATION, SCIENCE AND TECHNOLOGY

In 2009, Government recorded great achievements in education, science and technology sectors through the free and compulsory education policy. The state has paid the sum of N344.8 million subvention to public schools for the first and second terms of this school year, paid the sum of N187.7 million as NECO/SSCE Examination fees for all candidates in public secondary schools in the State; approved the sum of N13.76 million as NATEB Examination registration fees for candidates in the six Public Technical Colleges; distributed one million exercise books to public primary and secondary schools in the state; and undertook massive rehabilitation of public primary and secondary schools in the state in order to provide a conducive learning environment. Government has also provided capacity building training to teachers within and outside the country; and implemented the 27.5% new (TSS) Salary Scheme to teachers in the State.

The administration has signed a memorandum of understanding with Mobil, IBM and KPL for the training of over 450 unemployed graduates in the state. This program is aimed at enhancing self-employment and employability of the trainees while also providing a pool of experienced persons in ICT skills both in public and private sectors within and outside the State. Work will commence soon at the Ibom Science Park, a project started by the former administration but abandoned by the contractor after collecting over 90% of the total contract sum.

In 2010 Government would continue with its policy of free and compulsory Education and the rehabilitation of schools through the inter-ministerial direct labour committee. Six hundred and fifty of these projects are now ready for commissioning as part of ceremonies marking the 3rd anniversary of this administration. Government will ensure the completion of the Ibom Science Park, after the submission of the report by the ad hoc committee of the House of Assembly and the passage of the necessary enabling laws. For the various programmes in the Education, Science and Technology Sector, a total sum of N34.350 billion has been provided in the 2010 budget. N13.704 is for current services while N20.645 billion is for capital expenditure.

HEALTH

This government regards good health as the inalienable right of every individual. To ensure effective health care delivery, government has implemented free medical treatment for children of five years and below, pregnant women and the elderly of 70 years and above. We have activated and expanded eight Anti-Retroviral therapy centres, 15 Prevention of Mother to Child Transmission (PMTCT) Centres and 37 HIV Counseling and testing centres, all rendering free services to our people. We have also constructed five brand new General Hospitals in Eastern Obolo, Ika, Ibeno, Essien Udim and Ukanafun, not to mention the massive renovation of the General hospitals in Etinan, Oron and Ikot Ekpene. Government has also purchased (2) brand new X-ray machines to replace the obsolete ones, in a bid to improve service delivery in this sector.

Government has also trained and retrained health personnel both within and outside the country. We have donated renal dialysis equipment to the University of Uyo Teaching Hospital (UUTH), assisted the hospital in the completion of its obstetrics and gynecology building, and donated N50 million to the hospital, a federal institution, to enhance its service delivery to our people.

At present, government is assisting the institution with funds to complete a pediatric centre. More health facilities shall be rehabilitated under the inter-ministerial Direct Labour Committee in 2010. For all programmes and projects in this Sector, the sum of N13.236 billion is proposed in the 2010 budget. N3.705 billion is for recurrent services and N9.531 billion for capital expenditure.

RURAL DEVELOPMENT

In 2009 Government sustained the accelerated pace in our rural transformation drive through the provision of electricity, portable and mini-water schemes, rural feeder roads, as well as farm roads and bridges. Government embarked on a total of 3,000 people-oriented projects spread across the 31 Local Government Areas in the State. Government has also awarded contracts worth N8 billion for the electrification of many rural Communities, in line with our vision of electricity for all by 2011. Government is zealously committed to the completion of these projects. To this end, we have ordered for 800Nos 300KVA transformers in the sum of N3.4 billion, to complement the earlier 800 units imported, and currently in use.

In 2010, Government would embark on the rehabilitation of the existing feeder/farm roads, bridges and water in order to reduce the incidence of water borne diseases and reduce the difficulties of transporting our own foodstuff to where it can be marketed. Thus the sum of N10.066 billion has been provided in the 2010 budget.

ROAD AND TRANSPORT

In 2009, the provision of key infrastructure such as roads, bridges, electricity, water and road transport to enhance socio-economic growth and development was a top priority. In the past (2) two years, Government has constructed a total number of 162 roads over 600 kilometers across the State. As a demonstration of sincerity in governance, the present Administration has also embarked on the construction of Federal Roads within the State. These include the dualization of Ekim Itam to Ikot Oku Ikono, single carriage way, the Afaha Obong – Etim Ekpo – Iwukem Road, Oron Road, Airport Diversion Loop 2/Ikot Asua – Odobo – Nung Atai Eta and the Oron Road Section 11 from Mbiabong/Ring Road 111 to Airport, and Abak – Ikot Ekpene a single carriageway for a total distance of 600km at the cost of N103 billion. This includes bridges roads, erosion control and 3 flyovers.

We have initiated ‘Operation Zero Pothole’ for the constant maintenance of roads in the State Capital and other satellite towns, This Government has also enacted a law establishing the State Road and Infrastructure Maintenance Agency to function as a full time Intervention Organization to ensure prompt repairs of roads and other rural infrastructure, including slippery hills.

We have modernized the Fire Service Department, which was in a very sorry state. Government has spent about N1.324 billion in the purchase of 16Nos. fire fighting vehicles, 16No. ambulances, 16No. water tankers, generators, transformers, hoses, 16No. coaster buses and other fire fighting equipment. On the strength of these 94 lives and property worth N1.525 billion were saved within the period under review.

The completion of the International Airport in the State underscores our commitment and determination to reposition the State economically. The Airport, according to its original plan, was placed under category (II) but was changed to category (I) with related components of Maintenance Repairs and Overhauling (MRO) as well as cargo facility. The first Phase of the airport has been completed, and I am happy to inform the House of the commencement of commercial flight operations by Arik Air from Uyo to Lagos and Uyo to Abuja respectively.

It is noteworthy that we have spent N1.5 billion in the training of over 250 Akwa Ibom people in various Aviation-related schools in and outside Nigeria. It is expected that our State will in the near future provide a manpower base to the Aviation Industry in Nigeria.

In our efforts to have a better transportation system in the State, we provided an additional 100 taxis to boost the earlier 200 taxis distributed in year 2008. Forty (40) Hiace buses were also procured and floated as Uyo City Buses, ten (10) Marco-polo buses were bought for inter-local government transportation, all these are to ease transportation problems for the citizenry.

With Government effort fully geared towards transportation; road construction, rehabilitation and maintenance of roads throughout the State, a total sum of N53.764 billion has been proposed for the Road and Transport Sector.

INDUSTRY, COMMERCE AND TOURISM

Government embarked on the construction of Ibom Tropicana Entertainment Centre, a N33billion composite world class entertainment complex in Uyo, comprising 18 storey, 250 bedroom Five Star Hotel edifice, an International Convention Centre, a Shopping Mall with over 200 shops, a theme/water parks and a multi-storey, Car Park etc. This flagship project along Udo Udoma Avenue, will on completion create more than ten thousand jobs and generate additional revenue to Government.

The development of a deep sea port at Ibaka through Ibom Industrial City Project will reposition the State as an economic hub in the Gulf of Guinea and will be given priority in 2010. I am happy to announce to all Akwa Ibom people, here represented by you, that we have fully developed and completed the Concept Master Plan for this project. Government will provide key infrastructures in this zone to underscore its commitment and determination to drive this vision. To this end, a total sum of N46.387 billion has been provided in the 2010 Budget for Industry, Commerce and Tourism.

LANDS, HOUSING AND URBAN DEVELOPMENT

Government has embarked on the beautification and creation of open spaces and developing them into active usable space for cost recovery. It has renovated Idongesit Nkanga Secretariat, constructed the office/residence of key aides to the Governor at Government House Complex, constructed 4No. Motor Parks and Bus Stations, at Uyo. Government has also embarked on the construction and building of Timber and Livestock Markets, Abattoir at West Itam, New Governor’s Lodge, Uyo, Akpan Andem Market phase II ,and the relocation/ construction of Ikot Ekpene Prisons.

In 2010, Government will continue in its effort to develop the State by transforming various towns into modern cities through the construction of 1,500 units mass Housing Estates in the three Senatorial Districts. Also to be constructed are a Banquet Hall, and Government Guest Houses, a Mechanic Village, Legislator’s Quarters, Deputy Governor’s Lodge and renovation of Ibom Hall etc. For all these programmes, a total sum of N71.377 billion is proposed in the 2010 budget.

WATER SUPPLY

In order to tackle the erratic supply of potable water, Government awarded contracts in the sum of N5.5 billion for the reticulation of water. In 2010, Government will continue to monitor the distribution of water in a bid to ensure adequate supply of water to the populace. For this sub-sector, a total sum of N3.595 billion has been allocated and it is made up of N0.095 billion for recurrent services and N3.500 billion for capital expenditure.

INFORMATION, SPORT AND SOCIAL DEVELOPMENT

In line with government policy of effective information dissemination on programmes and policies, government has recorded the following achievements in the information sector. It has set up a website for improved information and data management. To give the Akwa Ibom State Broadcasting Corporation (AKBC) a competitive edge, this administration has provided a state-of-the-art digital Outside Broadcasting Van at the cost of N300 million to the station to enable live broadcasting.

Government has also upgraded facilities of various information dissemination agencies and offices of the State such as the Radio and Television Services of the AKBC, Akwa Ibom Newspaper Corporation, Government Printing Press, Council for Arts and Culture and the Ethical and Attitudinal Re-orientation Commission.

In 2010, Government will continue to expand the facilities of the various information dissemination Agencies and build the AKBC House at Ntak Inyang, and refurbishing the FM 2 Studio at Abak for improved and efficient information management and dissemination. Government will also provide brand new digital machines to the Government Printing Press, Uyo as well as digital Printing Press for the Akwa Ibom Newspaper Corporation, publishers of the Pioneer. This effort will ensure the effective printing, delivery and distribution of the newspaper across the State since Pioneer will no longer be printed outside the State.

Also, government will continue to support the various programmes and projects of the Agencies and offices in the information, sports and social development section of the State. The sum of N6.511 billion has been voted for this sub-sector in

GENERAL ADMINISTRATION

In line with the policy of this administration of ensuring adequate funding of the Legislative, Executive and Judicial arms of government, a total sum of N7.481 billion has been proposed for the recurrent and capital expenditure of the State House of Assembly: N7.062 billion for the State Judiciary; and N27.348 billion for General Administration of the State Public Service. The 2010 budget will ensure completion of the ultra modern library. Provision has also been made for the prompt payment of salaries, pensions and gratuities and for the continuation of staff training programmes within and outside Nigeria.

CONCLUSION

Mr. Speaker and Hon. Members, this Budget is intended to actualize our collective dreams and aspirations in the state within the frame work of a sustained partnership with the private sector. We believe that we have established a solid framework for the attainment of our desired goal.

In order to provide an appropriate basis for the assessment of the proposal, articulated in the 2010 budget, the estimates of revenue and expenditure are submitted with the annexure containing all the relevant details.

Mr. Speaker and Honorable Members, we stand together at the bridgehead of history. We have already done what no one thought probable, and another opportunity beckons in the New Year for us to do what no one thought possible. We have achieved much by doing little things with great passion. Let this passion not flag and let it not wane. We are winning on every front and there is no stopping us. Together we are building a state of our grandfathers’ dream and posterity’s pride.

Once again, I salute the good people of Akwa Ibom State for their tremendous support and goodwill. I remain committed to the course of Akwa Ibom State project. I implore you, Mr. Speaker and the Hon. Members, to graciously and expeditiously consider and approve the 2010 Budget proposals of the Government of Akwa Ibom State.

Thank you and may God continue to bless Akwa Ibom State.