EBONYI STATE 2021 BUDGET SPEECH
By DR. DAVID NWEZE UMAHI, EXECUTIVE GOVERNOR OF EBONYI STATE 1 month ago
2021 BUDGET SPEECH
AN ADDRESS BY HIS EXCELLENCY, ENGR. DR. DAVID NWEZE UMAHI, FNSE, FNATE, EXECUTIVE GOVERNOR OF EBONYI STATE, ON THE OCCASION OF THE PRESENTATION OF THE 2021 BUDGET AND APPROPRIATION BILL OF EBONYI STATE GOVERNMENT TO THE EBONY STATE HOUSE OF ASSEMBLY THIS 15TH DAY OF DECEMBER, 2020.
Mr. Speaker,
1. I stand today, in fulfillment of the constitutional mandate of my office and in honour to the hallowed chambers of the 6th House of Assembly of Ebonyi State ably led by the Speaker, Rt. Honourable Francis Ogbonnaya Nwifuru, to lay before this Honourable House, the appropriation bill Budget Estimates for the 2021 Fiscal Year.
2. Mr. Speaker, to underscore our challenges in the second recession since we came to office in 2015, we have named this 2021 budget, THE BUDGET OF STABILIZATION AND CONSOLIDATION IN A RECCESSION.
3. This presentation cannot go without first appreciating the members of this great House of Assembly for the passionate manner you have discharged your constitutional duty of constituency representation, law making and oversight functions. Indeed, you have demonstrated the highest sense of responsibility and phenomenal commitment in tackling all issues of legislative imperative. I commend the peace, the cordiality and harmony that exist amongst you.
I therefore on behalf of the State Executive Council and indeed the government and people of Ebonyi State commend you and urge you to continue to keep pace. It is noteworthy to mention that the modest achievement we have made are a product of peaceful, coherent and cooperative disposition of the three organs of government especially the legislature.
4. As you know, the constitution of the Federal Republic of Nigeria 1999 as amended (section 12(1)) bestowed on me the duty to lay before this hallowed chamber "at a time before the commencement of each financial year, estimate of the revenues and expenditure of the state for the following financial year". This we have always done with due diligence since my administration.
5. We have religiously followed the content and spirit of the various appropriation laws made by this Honourable House and we have also followed up the execution of our projects and programmes with sincerity of purpose and commitment to the ideals of our administration and principles of good governance; we have pursued the path of equality assurance, prudent in resource allocation and management, vigour in monitoring and evaluation, selflessness in service delivery, equity and equality in the distribution of the democratic dividends. We have shown compassion to the neglected and downtrodden and forthrightness in the creation of institutional and legislative roadmap for the socio-economic emancipation of our people.
6. Mr. Speaker and Honourable Members, recall that we took oath of office in 2015 we took the mantle of leadership at a moment of great economic challenges to our Nation.
I am gratified that today, we have together fought a good fight of faith; we have redeemed the image of the state, we have given ourselves a new narrative, a new order and a new face that will be a reference point in generations to come. Today, we can raise our heads high in the committee of states to say that we are from Ebonyi state. We can say that Our voice can be heard, that our modest achievement can guarantee the future of our land and its inhabitants and that our vision and accomplishments can satisfy the aspirations of our founding fathers and yearning of Ebonyi people. We have remained faithful to our fore-bearers and true to our manifestoes. Ebonyi State has truly become the Salt of our Nation.
7. Today, we can say that our infrastructures have improved, we can say that the human capital development, education and health of our people have been given adequate attention. We can say that we have a set of ideas, discipline and attitudinal change that have raised our psych and sense of self esteem. We can say that today, Ebonyi State signposts excellence, with rising tides of prosperity and the still waters of peace.
8. We thank God Almighty that Ebonyi State that hitherto had worst infrastructure, appalling environment, psychological complexes and human capital deficit is now a shining light in all sectors.
9. SUMMARY OF 2015 TO 2020 BUDGET ESTIMATES
A look at the appropriation laws of this state from 2015 to 2020 and the spirit of their acronyms shows our administration's vision to embark on revolutionary
transformation of the land and inhabitants of Ebonyi State
through life changing programmes and projects.
You will see a developmental chain linking to the 2021
Budget of Stabilization and Consolidation in A
Recession. (See the table below)
(SUMMARY OF 2015 TO 2021 BUDGET ESTIMATES)
S/N Years Capital (Billion Recurrent (Billion) Total Budget Estimate in N Billion Budget Acronym
a 2015 38.809 37.076 75.885 Budget of Repositioning
b 2016 62.397 38.758 101.154 Budget of Divine Actualization
c 2017 87.062 40.172 127.234 Budget of Inclusive Growth and Poverty Reduction in Economic Recession
d 2018 165.005 43.326 208.331 Budget of Divine Manifestation
e 2019 146.846 41.556 188.402 Budget of Divine Fulfillment
f 2020 87.132 44.870 132.002 BUDGET OF GROWTH, CONSOLIDATION AND TRANSFORMATION
g 2021 73.711 49.141 122.852 BUDGET OF STABILIZATION AND CONSOLIDATION IN A RECCESSION
10. ACHIEVEMENTS OF THE STATE GOVERNMENT SINCE 2015 (REVIEW OF MAJOR SECTORS)
A. INFRASTRUCTURE AND ENVIRONMENT
i. In the area of infrastructure and environment, we now have a good road network connecting all the Local Government areas in the State. About 500 k/m concrete roads of 8 inches thickness have been constructed under our regime throughout our 13 LGAs. Over 1100 kilometers of roads in the capital city and satellite town have been constructed or reconstructed in line with the New Ebonyi standard.
ii. We have constructed over 350 kilometers of Federal roads to connect the major entrances to our dear State. We are sure that our concrete roads can serve our socio-economic needs for over 50 years and enhance safety and movement of goods and services in the State.
iii. We have taken our road construction projects to the Federal Security institutions in the State; we have constructed internal roads of the Headquarters of the Police Command, the Army, the Civil Defence, the SSS entrance. We have done linkage roads to churches and other sensitive private/public facilities and religious premises.
iv. We have done 10 numbers modern flyovers of 12km total length and we have commenced another construction of 3 flyovers in strategic junctions and major highways of the 3 senatorial zones to beautify our state and save countless lives of our people. We are dualizing about 30 kilometers of ancillary roads where these flyovers are located.
v. We have made Sir. Akanu Ibiam Roundabout a tourist zone by constructing President Buhari light Tunnel with 29 spans, largest fountain in Nigeria and aesthetic light that shines in the night to make Ebonyi State investment friendly and promote night business. In our bid to give the Government House a new face, we embarked on comprehensive reconstruction of the existing Governor's Lodge and the Presidential Lodge.
vi. Now, we have completed the construction of a brand new Governor's Lodge, new Presidential Lodge, new Governor's Office, over 12 houses for aids and new EXCO chamber. We are constructing a new office of Her Excellency and a brand new government house chapel.
vii. We have given the State Capital a beautiful face by constructing the most amazing and sustainable fountains/tourist attraction in the South-East – 12 in number at strategic locations to promote creative and entertainment industry in the State.
viii. We have renovated the State Township Stadium now called Pa Ngele Oruta Township Stadium adorned with a formidable glass pavilion, ancillary work and guest house for accommodation of athletes and we have commenced a new modern stadium.
ix. We are constructing the biggest Shopping Mall, to create market and stimulate provision of goods and services. This Shopping Mall will attract International trade and investment and shall create not less than 3000 jobs and generate thousands of wealth creation. This mall shall be ready for use by the end of January 2021. The mall is almost over subscribed.
x. We have almost completed St, Margaret Umahi
International Market reconstruction. Traders from Abakpa market have all moved in and occupation is about 60%.
xi. We have built God's worship centre, the Christian Ecumenical Centre, biggest ever built by any government in Nigeria, with main hall of 10,000 capacity, about 2000 capacity smaller hall with modern lift, escalators, offices and accommodation to boost socio-economic activities, including spiritual revival.
xii. We have done at least 20 kilometers street lights in each of the 13 Local Government Areas and we have connected all vital streets with street light that shine 12 hours non-stop. Again, the major streets are adorned with beautiful ornamentals to make the environment inviting. This is to encourage urban-rural migration and trade and to attract creative industries in the State.
xiii. Other special infrastructure being built by Ebonyi State Government under my watch is a Classical International Airport with 1.5km x 4km land area and with 3.5km runway, patterned after Lagos and Abuja Airports which will be one of the best in Nigeria, and an Ultra Modern Stadium, all centrally located within the state to serve the investment needs of the State. These investments will create not less than 5000 direct and indirect jobs, attract investors, raise tourism potentials of the state and enhance the revenue generation capacity of the state. It will enhance safety in the wake of insecurity in the country. This airport will become functional latest by March 2022.
xiv. Driven by our passion to lift the living standards of our rural people who constitute the highest number of our population, we are partnering with the Federal Government and the World Bank, under RAAMP Programme to construct not less than 595km of Agricultural farm roads, 46km per Local Government to link up all the major communities, through Rural Access and Agricultural Marketing Project (RAAMP). This programme has just been approved by the World Bank.
xv. We are doing a ring road 177 kilometers in partnership with African Development Bank (AFDB) to connect 8 Local Government Areas in the State with a target of providing access road for farmers and solid mineral dealers and thus boost economic activities across all communities. It is expected that not less than 100,000 of rural farmers and entrepreneurs will be involved in agric and solid mineral businesses within the local communities. We have advanced greatly in this direction and we hope that the project construction will start latest by March 2021. Interestingly, the road will be completed with concrete pavement with at least 70 years life span.
xvi. We are constructing industrial cluster for shoe making, textile making, manufacturing and production in Ishielu LGA in the Central Zone. We are developing 100 Hectares of Agricultural Production Cluster in each of the three senatorial zones.
xvii. Water and power supply are attracting huge attention under our administration. We have taken bold steps to rehabilitate the Ezillo Water Scheme, rehabilitation of Oferekpe Water Scheme is on going now, we procured quality water pumps for Ukawu and Ezillo water treatment plant to enhance efficiency of the treatment plant. Construction of Ivo and Uburu water are on-going. By the time we are through, water related businesses will also be created. We are changing our energy source to solar power. Very soon, all the street lights and other Government Facilities will be run with solar power as it is in EBBC, EBSU Green House, Uburu, Centenary City solar Stations, etc.
xviii. Repairs at Oferekpe Water Scheme are being effected and we hope that the repair work will be concluded in February 2021. Efforts are on top gear to make water available to the urban residents.
xix. Government's waste to wealth policy gave rise to the establishment of pulverization plant. A pulverization plant of 200TPH was installed by our administration. The plant recycles other agricultural bye products and house wastes, thus aiding in the cleanliness of our environment and creating jobs for peasant farmers and small scale business men and women. We are in partnership with International Firm, Cydam Nigeria Limited to run the plant and produce electricity and organic fertilizer.
11. SECURITY
a. Under Security, we have introduced a Smart City initiative in the Abakaliki Metropolis, where CCTV is mounted at strategic Junctions to monitor road users and track criminals to their hiding place, we intend to do same in each of the 13 Local Government Areas. We procured and installed traffic light to reduce accident and enhance traffic regulation.
b. We recruited over 4000 Neighbourhood Watch members into the security architecture of the State, and they are paid monthly.
c. We constituted farmers-Herders Committee and they hold regular meetings to ensure that they live in peace. This committee is further decentralized in each of the Local Government Areas and Development Centers to resolve all herders/farmers conflict.
d. We procured and distributed over 100 Hilux jeep to Security outfits in the State, including the Neighbourhood Watch and Forest Guards.
12. AGRICULCTURE
a. In Agriculture, we started by making farming compulsory for all public and civil servants and we had to declare one-man hectare programme to all elected and appointed people, including civil servants.
b. This made Ebonyi State to emerge as one of the three largest producers of rice in Nigeria. We profiled over 53,000 farmers on rice production in 2016 and since then we have continued to increase the zeal of rice farmers and we gave them improved rice seedlings and other inputs including soft loans.
c. We launched mechanization of agriculture where many modern farm implements such as tractors, threshers, tillers were procured and given to farmers. We already have a history of being a state with the biggest rice milling clusters in Africa, so we had to increase the tempo by installing new 3-number 3 MTPH capacity modern rice mills with 8 MTPH parboiling plants installed by our administration. This is in addition to the 3 Nos. 5 MTPH mega rice mills already running in Ebonyi State. We are bringing together all the over 1000 local rice millers into cooperative societies. We shall create two Rice City with modern milling equipments and market to reposition them and increase our capacity to feed the Nation.
d. I must commend Mr. President for closing the border. This has helped farmers in two dimensions; one, they can now produce healthy rice with value to feed the nation and the conflict between farmers herders has reduced, confirming that foreign herdsmen who were moving through these borders were majorly responsible for the killing and destruction of farmlands. Again, Nigerians will now eat healthy rice and not poison in the name of foreign rice.
e. We procured and installed 5 number 3 MTPH and 4 MTPH parboiling plants and made same available to cooperatives in selected LGAs. This has increased activities in the rice value chain and we propose that by 2021, every Local Government Area shall have a modern rice mill.
f. Cassava is the next priority crop in Ebonyi State. Apart from introducing hybrid vitamin A and C cassava stems, our administration procured for farmers, 4 number 5MTPH cassava processing machines, including the machine for cassava starch and flour. We have raised off-takers in the value chain of cassava to off-take cassava produced from different communities of the State and other priority crops of the State.
g. The State Government under my watch saw the need to rehabilitate the existing fertilizer Plant in the state and set it to provide the fertilizer needs of the state in all farming activities. The plant which produces NPK of all types, now has the capacity to produce 40mt per hour. We have also built another brand new fertilizer plant with a capacity of 40 MTPH capacity. This means that we have two sets of fertilizer plant with a combined capacity of 80 MTPH which produces all kinds of fertilizers for farmers in the South East, South South, North and also for the Federal Government.
h. Our administration also completed the establishment of mushroom factory which we copied from Abia State Government and expanded it to be the largest mushroom farm in Nigeria.
i. In order to exhibit our agric produce and solid mineral potentials, we constructed a glass show room to serve as an exhibition centre for all agricultural and solid mineral products.
j. Since 2015, we have given to farmers and civil servants aid to farm in the sum of 12 billion Naira. Our target is that with average of N250,000 soft loan to each farmer and with the introduction of dry season farming, which makes for two farming seasons in a year, the farmers are cruising home with not less than N500,000 profit per annum, under the one-man-one-hectare policy of Ebonyi State Government.
13. EDUCATION
a. In Education, we believe that education drives diversification, our policy is targeted at raising the quality of education through training of teachers, provision of necessary facilities that will enhance education, such as good learning environment, free and compulsory education for Primary and Secondary School and introduction of School Agricultural Programme to enhance interest in modern Agriculture.
b. The policy of School Agric. Programme also powers the school feeding programme introduced by the Federal Government, especially in the Primary Schools. Our administration also introduced Special Schools namely, Vocational College, King David Gifted Children Academy, Vocational Agric Training Institute and Tehila Adult Education.
c. Vocational College is available as full time and part-time programme for talented artisans, technicians, craftsmen and youths who have passion for vocational programme but require formal training to be qualified to go into vocational businesses. The Vocational College shall not only give certificate to the school leaver, it will also profile such persons for numerous State and Federal Government enrolment programmes including the Central Bank of Nigeria (CBN) and Bank of Industry (BOI). We are targeting that not less than 30,000 beneficiaries of this vocational education will be empowered fully before the end of 2023.
d. The King David Gifted Children Academy is available to children who are exceptional in academic performance, selected on equality basis across the Local Government Areas. Selection of these children is by a competitive selection process in which the best in class performance is selected per ward.
e. Government shall take care of all the cost of training of the gifted children from the point of entry to the point of graduation. They will be placed under good nutrition. It is a school for future leaders of the State. The teachers for the school are selected through Examination process.
f. Vocational Agric Training is a school programme for our farmers, civil servants and those who have interest in agriculture but lack the requisite qualification and experience.
g. The Tehila Adult Education is available for men and women who did not have opportunity of formal education.
h. We are presently pursuing a BESDA programme of out-of-school children with World Bank. By 2021, no Ebonyi child will be out of school.
i. In 2020, we injected over N8bn in the reconstruction of our primary and secondary schools buildings including provision of school seats.
j. Recall that under our administration, quality of education improved tremendously. We are no longer among the educationally less privileged. Ebonyi now occupies the 10th position in the WAEC and NECO performance since 2015 to date. But we want to be no. 1. According to NUC performance index, a local government area in Ebonyi State came first among the 774 LGAs in Nigeria in terms of total number of students admitted in the various universities In 2017.
k. In the same year, the Local Government Area in Nigeria that produced the student with the highest score in Medicine and Surgery, for admission into Nigeria's University is from Ebonyi State. This means that in future, education will add impetus to our economic development Agenda.
14. HUMAN CAPITAL DEVELOPMENT
a. Under Human Capital Development, we have developed a roadmap to entrepreneurship and industrialization.
b. This is why the State Government profiled 3,000 youths and women living in Ebonyi State; trained and empowered them with a total of N750m grant to go into businesses of their choice. Government introduced street to skill empowerment programme for Ebonyi indigenes who are hawking in the streets of Lagos and other major cities of the country and empowered the first batch of 520 youths and women drawn on equality of local government areas with N130m.
c. The widows in Ebonyi State are not left out in the empowerment schemes as 4,300 poorest of the poor widows were profiled, trained on business management and empowered with Four Hundred Million, three Hundred Thousand Naira (400,300,000.00) grant to assist them go into Agric business. Government trained and empowered 5008 Pastors and Clergy with the sum of Five Hundred Million, Eight Hundred Thousand Naira (N500,800,000.00) for them to have a second address through Agric-business. This is aside over N20 million paid monthly for the welfare of the downtrodden through the various religious institutions.
d. 403 Wives of Security officials posted to Ebonyi State from the different security outfits were trained on business management and were empowered with Eighty Million, Six Hundred Thousand Naira (N80,600,000.00) for Agric business. 80 percent of them are not indigenes of Ebonyi State.
e. 400 youths and women of Ebonyi State who were in the business of barrow pushing and degradable businesses, some of whom are in Onitsha Anambra State were trained on tricycle mechanics and repairs and empowered wit 400 brand new TVS Tricycles to improve their living standard. Ebonyi youths and women who have interest in agric related transportation were profiled and given over 98 number Sienna buses to upgrade their source of livelihood, and help in evacuating agric produce from the rural areas.
f. Civil Servants are not left out in our empowerment policy as we have profiled 10,000 civil servants for training and empowerments to enable them go into farming. Over 4 billion Naira has so far been rolled out as soft loan to the civil servants with a policy that every Friday is a work-free day for the civil servants who have farms.
g. Between now and the next two years, the State Government will raise 40,000 Millionaires through entrepreneurship development. Already, we have established Ebonyi State Stimulus Development Project (EB-SDP) which has profiled 5,000 youths and women for empowerment under this project. We also have millionaire club scheme whereof incentives are given to performing entrepreneurs.
h. Note that under education and Human Capital Development, we emphasize training and retraining of entrepreneurs, technicians, craftsmen, farmers etc on business management, Agricultural best practice, mentorship programme for the youths and women. We have programme for the vulnerable.
i. We have empowered 150 Autonomous Communities with Ten Million Naira (N10,000,000.00) each to go into projects of social importance. We have empowerment scheme for our Traditional rulers. They now drive brand new jeeps and receive not less than One Hundred Thousand Naira (N100,000.00) as monthly allowance.
j. We have paid all necessary counterpart funds for IFAD, FADAMA and CSDA and they have injected not less than Fifteen Billion (N15Billion) Naira into the economy of the State through various empowerment programmes.
k. We introduced reward system to encourage hard work, excellence and integrity. We have a principle that every person should have a second address, including the civil servants and politicians, training on ICT, professional, discipline etc. and also a Stimulus Development Project.
15. SOLID MINERAL DEVELOPMENT
a. In Solid Mineral Development, We have potential in lead ore (Galina), Iron ore, Granite, Salt, Black Marble, Coal, Limestone Quartz, Kaolin, Zink ore, Dolerite, Siderite,. We are doing our best to engage investors to develop our solid mineral sectors. Presently, Mr. President has approved and paid to investigate salt deposits in Ebonyi State and install machinery for full production.
16. HEALTH
a. In health Sector, We have developed our primary health care system and made it accessible to the rural population; we renovated 13 General Hospitals, 171 Primary Health Centres, including the College of Medicine and we are building a brand new College of Medicine for our State University. We have built the biggest Laser Fever and Virology Centre; we are constructing emergency Hospital Projects at the Alex Ekwueme Teaching Hospital, Abakaliki. We have fought very hard to protect our people against Covid-19 Pandemic.
b. The New Teaching Hospital Uburu is an Ultra Modern State Teaching Hospital (biggest in the South East) to serve for total tertiary health care, including facility for kidney cases, Cancer Treatment Centre, Radiology and Maternal and Child Care, Eye Centre etc.
17. FAMILY SUCCOUR AND UPLIFTMENT PROGRAMME
a. Under Family Succour and Upliftment Programme/Welfare Matters, through the Pet Project of my dear wife, Her Excellency, Chief Mrs. Rachel Ogonna Umahai, the widows, the less privileged, the sick and helpless have received succor in different dimensions; she has launched campaign against Female Genital Mutilation (FGM) and this campaign has reduced FGM from 74.4% to less than 30%. Other interventions are the domestication of VAPP law; Collaboration with USAID and UNFPA to treat women down with fistula; Rehabilitation of over 25 repaired fistula clients; Intervention to recover the moribund Agency for Mass literacy; about 1710 widows given N100,000 start-up grants; 300 widows receiving monthly stipends; Building of 172 houses indigent widows; Creating awareness/treatment for breast and cervical cancer; Improving girl child education; Regular visit to hospitals and promoting mother and child health.
18. COMPARING 2019, 2020 AND 2021 BUDGET ESTIMATES.
From the table below, we have exposed the three years budget estimates with their performances
(a) PERSONNEL COSTS
Section Code Sector 2019 Approved Budget 2019 Actual
(Jan. to Dec.) 2020 Approved Budget 2020 Approved Revised Budget 2020 Actual
(Jan.-Sept.) 2021 Budget Estimate
01 Administration Sector 1,866,857,554.00 1,784,252,873.14 2,504,190,413.39 2,002,281,597.39 1,795,133,869.32 2,345,915,350.86
02 Economic Sector 2,379,884,543.71 1,429,591,180.73 3,122,582,655.72 2,432,394,476.70 1,538,584,310.97 2,674,353,429.87
03 Law and Justice Sector 640,400,.000.00 740,435,957.31 2,153,196,429.33 693,958,623.00 517,394,356.58 701,237,073.00
04 Regional Sector 67,140,586.30 38,719,583.70 67,140,586.30 58,500,000.00 43,504,574.04 58,500,000.00
05 Social Sector 6,092,933,030.00 5,052,846,324.84 10,468,453,412.60 10,353,521,696.29 6,523,237,635.01 10,669,871,859.60
Contingency Fund 0 0 0 0 1,837,706,721.83 0
TOTAL PERSONNEL COSTS (ALL SECTORS)
11,047,215,714.01
9,045,845,919.72
(a) PERSONNEL COST
(i) It can be seen that the Personnel Cost Performed 81.88% over its budget estimate
(ii) In 2020, the Performance of personnel cost was expected to perform to the level of about 105.15% over the revised budget estimates.
(iii) In our 2021 budget, we hope to achieve over 95% performance because the projected actual or 2020 by December 31st is N16.34bn and our 2021 budget estimate is N16.45bn which is slightly higher than the 2020 projected figure.
(iv) We will augment any shortfall on our personnel estimate with our contingency fund of N1bn.
We believe that our personnel cost may increase when we embark on our staff audit and more staff are engaged in the various MDAs.
b. OVERHEAD COST
Sector code Sector 2019 Approved
Budget 2019 Actual
JAN-DEC 2020 Approved Budget 2020 Approved Revised
(JAN-SEP) 2021 Budget Estimate
1 ADMINISTRATION SECTOR 12,603,206,400.00 7,715,682,524.62 17,427,021,000.00 17,316,724,486.00 8,400,665,196 11,182,511,754.75
2 ECONOMIC SECTOR 3,046,492,047.00 68,777,546.82 418,920,009.00 1,355,208,238.23 3,024,215,074.57 14,642,825,446.57
3 LAW AND JUSTICE SECTOR 477,800,000.00 296,470,577.00 717,485,000.00 370,649,600.00 161,941,937.12 230,240,000.00
4 REGIONAL SECTOR 857,300,000.00 4,420,050.00 10,550,000.00 10,200,000.00 3,000,000.00 5,030,000.00
5 SOCIAL SECTOR 3,172,523,668.00 53,422,930.00 3,845,545,203.49 2,382,151,971.22 1,095,622,778.53 5,630,333,174.35
CONTINGENCY FUND 0.00 0.00 0.00 0.00 581,598,255.53 1,000,000,000.00
GRAND TOTAL RECURRENT EXPENDITURES (ALL SECTORS) 20,157,322,115.00 8,138,773,628.44 22,419,521,212.49 21,434,934,295.45 13,267,043,242.19 32,690,940,375.67
(b) OVERHEAD COST
(i) The overhead cost here achieved 40.37% performance in 2019.
(ii) In 2020, the projected overhead cost in the revised budget is projected to be 82.53% performance. Increase in overhead of 2020 over 2019 was because of Covid-19 expenditures also purchase of vehicles for the government, payment of severance allowances and furniture allowances.
(iii) In 2020, our overhead expenditures also increased because of Covid-19 cares and responses programmes. Our budget here is N32.69bn. We hope to achieve over 70% performance by Dec. 31st 2020, God willing.
C. TOTAL RECURRENT EXPENDITURES
JAN-DEC 2020 Approved Budget 2020 Revised
1 ADMINISTRATION SECTOR 14,470,063,954.00 9,499,935,397.76 19,931,211,413.39 19,319,006,083.39 10,195,799,065.32 13,528,427,105.61
2 ECONOMIC SECTOR 5,426,376,590.71 1,498,368,727.55 3,541,502,664.72 3,787,602,714.93 4,562,799,385.54 17,317,178,876.44
3 LAW AND JUSTICE SECTOR 1,118,200,000.00 1,036,906,534.31 2,870,681,429.33 1,064,608,223.00 679,336,293.70 931,477,073.00
4 REGIONAL SECTOR 924,440,586.30 43,139,633.70 77,690,586.30 68,700,000.00 46,504,574.04 63,530,000.00
5 SOCIAL SECTOR 9,265,456,698.00 5,106,269,254.84 14,313,998,616.09 12,735,673,667.51 7,618,860,413.54 16,300,205,033.95
CONTINGENCY FUND 0.00 0.00 0.00 0.00 2,419,304,977.36 1,000,000,000.00
GRAND TOTAL RECURRENT EXPENDITURE (ALL SECTORS) 31,204,537,829.01 17,184,619,548.16 40,735,084,709.83 36,975,590,688.83 25,522,604,709.94 49,140,818,089.00
(i) The Recurrent Expenditure of 2019 performance was 55.07% of its total budget or 9.12% of the total budget.
(ii) The projected recurrent expenditure of 2020 performance was 121.03% of its total budget or 37.51% of the total revised budget by December 31st 2020
(iii) The 2021 Budget has put the recurrent estimate to be 40% of the total budget
d. CAPITAL
(JAN–DEC) 2020 Approved Budget 2020 Approved Revised Budget 2020 Actual
01 ADMINISTRATION 10,905,535,000.00 3,857,865,859.06 12,531,221,017.50 4,597,522,100.00 2,485,261,624.50 3,045,313,300.00
02 ECONOMIC 101,572,905,000.00 24,135,443,579.09 84,476,341,313.75 38,616,041,375.00 29,468,589,395.81 36,681,313,450.48
03 LAW & JUSTICE 456,920,000.00 105,032,006.79 1,583,126,825.00 850,600,000.00 382,105,281.55 693,200,000.00
04 REGIONAL 581,160,000.00 64,606,080.00 122,631,245.00 239,700,000.00 0.00 176,490,000.00
05 SOCIAL 36,100,150,000.00 4,744,376,379.15 36,527,171,922.09 40,828,129,033.43 18,498,948,024.57 31,114,910,383.01
Contingency 0.00 0.00 0.00 2,000,000,000.00 0.00 2,000,000,000.00
TOTAL CAPITAL
(ALL SECTORS) 146,845,670,000.00 37,789,924,508.84 132,056,117,985.38 87,131,992,508.43 50,834,904,326.43 73,711,227,133.49
(d) CAPITAL
(i) In 2020, the Capital performance was just 25.73%. This poor performance was due to the delay in the take-off of Abakaliki ring road of which N50bn was included in the budget for the project.
(ii) In 2020 revised budget the projected performance by
Dec. 31st 2020 is 77.79%. This fact is because we have
started doing zero budgeting.
(iii) In 2021, our budget is N73.711bn and when compared to 2020 projected by Dec. 31st which is N77.69bn, we hope to achieve over 95 budget performance by Dec. 31st 2021.
(iv) We have included a contingency fund of N2bn under
our capital expenditure proposal.
19. PRESENTATION OF 2021 BUDGET ESTIMATES
(a) Mr. Speaker, may I with humility and faith in God, present to this Honourable House of Assembly our 2021 proposed budget tagged: "Budget of Stabilization and Consolidation in a Recession" in the sum of N122,852,045,222.49.
(b) Our major revenue is expected to come from Federation Account estimated at about N52bn or 42.33% of the budget. Other revenue heads like IGR, sales of international market stores, land proceeds, sales of malls, other receipts etc will account for the balance of N57.994bn or 47.53% of total budget. We are projecting to increase our IGR from projected N10,569,074,353.56 in 2020 budget to N12,858,297,657.83 or 10.47% of our total expected revenue.
(c) In 2020, our projected actual revenue receipts by Dec, 31st 2020 is N122,138,799,059.13 which is 92.53% performance. We are therefore staying on side of what is possible by our 2021 budget of N122,852,045,222.49 which is just 0.6% higher than our projected 2020 budget performance.
(d) RECURRENT EXPENDITURE
Our recurrent expenditure is projected at N49.141bn which is 40% of our total budget. This amount is about N15.11bn above the projected recurrent expenditure by 2020 Dec. 31st major increase in recurrent expenditure is from social sector especially health and education which account for over 34.7% of our total budget.
TOTAL RECURRENT EXPENDITURES
TABLE 10d: RECURRENT EXPENDITURE
(e) CAPITAL EXPENDITURE
Our Capital expenditure estimate here is N73.711bn which is 60% of our total budget and N5.95bn over the projected actual for 2020 by Dec. 31st. This increase in the amount is due to our 2021 target of completing most of our on-going projects.
TABLE 19e: CAPITAL EXPENDITURE
20. MAJOR FOCUS OF OUR 2021 BUDGET
(a) HUMAN CAPITAL DEVELOPMENT AND EMPOWERMENT.
We have a budget of N3,259,779,838.94 or 2.65% of the total budget. Out of this amount, we intend to deploy N3bn as ENDSARS empowerment programme for our youths and women. This programme has commenced with collation of names and their proposals of their choices of businesses. We intend to reach out to about 250 persons with best proposals per Local Government Area with N1m per person (per business). We encourage the Ministry to partner with Bank of Industry to increase the participants' scope of businesses and capital involved. With expected 80% success of this program. We believe that Ebonyi will be more focused on business than in politics. This programme is non-political.
b. MINISTRY OF HEALTH AND HEALTH RELATED PROGRAMMES
We have budgeted the sum of N18,706,279,929.28 or 15.23% of our total budget for Health related matters.
In 2021, we intend to complete the EBSU Medical School and deploy the school. We will complete the 14 General Hospitals.
The issue of Covid-19 programme will be pursued vigorously especially with the ugly trend of likely second wave showing up. We will partner with FGN for the vaccination of our people against Covid-19 in 2021. We will step up the health of our citizens to the next level.
(c) EDUCATION
In 2021, we have budgeted 19.47% of our total budget or N23,913,778,152.08 to Education.
Our Government believes that the best thing to give to the society is education. We will ensure that in 2021, no child of Ebonyi State is without education. We will pursue the training of our teachers with more incentives. We will continue to improve on the quality of our schools' infrastructure and learning materials. We will conduct a visitation programme to our State University and College of Education with the sole aim of improving the quality of education and the welfare of staff and students. Education in 2021 has the highest budget of the State.
(d) MINISTRY OF WORKS AND TRANSPORT
Ministry of Works and Transport has a budget of N9,206,693,563.56 or 7.49% of the total budget. We intend to complete all on-going projects before starting new ones.
The completion of flyovers bridges, dualization of Abakaliki to Enugu and Abakaliki to Afikpo, the Iyere flyover bridge in Afikpo South LGA, the completion of the remaining 16km out of 31km of Ntezi – Agba – Isu road in Ishielu and Onicha LGAs will be our focus. All the on-going projects in all the LGAs will be completed in 2021.
(e) MINISTRY OF INFRASTRUCTURAL DEVELOPMENT FOR CONCENSION
Under this Ministry, we are developing the airport and few other infrastructures. We have opened bids for the airport equipment and we hope to mobilize the contractor this December 2021. Other major works of the airport that will be completed in 2021 include the earth works, parks, terminal building, and concrete works of the 4km by 65m of the runway. We hope to open the airport for business latest by June 2022. The budget here is therefore N14,012,217,549.64 or 11.41% of the total budget.
(f) TOTAL BUDGET OF 5 PRIORITY MDAs
The total budget for these major MDA in line with our focus for 2021 is a total of N69bn or 56.24% of the budget.
(g) COVID-19 CRISIS AND RESPONSES
We have a total budget for Covid-19 cares and Responses to be N21,212,326,544.04 or 17.27% of the total; budget. Most elements of the Covid-19 crisis are based mostly in the budget of Ministry of Health while the Covid-19 responses budget are those programmes initiated by the State Government to cushion the adverse effects of covid-19 and resuscitate the economy. Most Responses budgeted items are listed in Health, Education, Human Capital, Works, Ministry of Infrastructure, Commerce and Industry and Ministry of Environment. We will restart all the programmes of Covid-19 to ensure we escape the second wave of Covid-19 pandemic.
21. EBONYI STATE DEBT PROFILE TO DATE
(a) INTERNAL LOANS (Domestic Loans)
(i) loans i – v are loans with projected compound interest given to all states between 2015 to 2017 when the economy entered into recession. The loans are structured for repayment by Federal Government in such a way that it will be fully repaid before 2023.
(ii) We met pensions and gratuity of State workers in 2015 of over N2bn. By 2018, total gratuity and pension rose to over N3bn of which we have paid off about N893m. Balance of pension and gratuity to date is about N3.347bn. We doubt the figures we have from 2013 to 2019 and we have directed investigation. We will do audit of this and make efforts to pay more in 2021. We hope to gradually offset this before end of 2022. Local Government Area outstanding gratuity is N1,442,120,944.38 and will be fully paid off before 2022.
(iii) On contractors' arrears, we have an outstanding N416,218,930.57 which is only retention fees for completed jobs. We hope to pay this by 2021. People have speculated that we achieved the much we did with bank loans. As at today, we owe no commercial bank any loan other than loans similar to all states as stated above.
(iv) We have projected a monthly repayment of all our internal loans to be N568,120,478.25 or 0.46% of our total budget.
EBONYI STATE DEBT PROFILE WITH DEPARTMENT OF DEBT MANAGEMENT ABUJA IS AS FOLLOWS (DECEMBER 2020)
DOMESTIC DEBT STOCK
S/N DEBT CATEGORY DEBT BALANCE TO DATE- DEC, 2020 MONTHLY REPAYMENT STATE
i BUDGET SUPPORT FACILITY 17,500,292,959.29 141,364,147.57
ii SALARY BAIL-OUT 3,651,438,261.00 5,795,944.63
iii EXCESS CRUDE ACCOUNT (ECA) LOAN 9,050,317,542.84 89,972,595.59
iv AGRIC. LOAN A. CACS (Commercial Agriculture Credit Scheme) 5,622,287,439.16 142,321,504.34
v MICRO SMALL MEDIUM ENTERPRISE DEVELOPMENT FUND (MSMEDF) 2,000,000,000.00 35,937,381.33
vi B. OTHER JUDGEMENT DEBTS 83,327,926.91 6,943,993.91
vii CONTRACTORS' ARREARS 416,218,930.57 34,684,910.88
viii PENSION AND GRATUITY ARREARS 3,346,740,520.74 100,000,000.00
ix VISION CARS DEBT ON OFFICIAL CARS 133,200,000.00 11,100,000.00
x TOTAL 41,803,823,580.51 568,120,478.25
(b.) External Loans
Our total external loans to date is $58, 342,940.06. None of these loans as can be seen in the next page was obtained by my administration. The loans were obtained by the two previous administrations for the good of Ebonyi people. The major parts of this loan outstanding include:
i. Ebonyi State Community Based Urban Development IDA –
$ 14,351,471.67
ii. Abakaliki Erosion Control Infrastructure – $21,063,613.72
We are repaying these loans at the rate of about N50, 000, 000.00 per month.
For emphasis, my government since 2015 has not obtained any foreign loan as being speculated by my detractors. The only loan we will obtain in 2021 is the AFDB loan of $150,000,000.00 to construct concrete road pavement of over 199 kilometer of Abakaliki Ring road, which will pass through 8-Local Government Areas of Ebonyi North and Central Senatorial zones.
Be it therefore known to all especially our dear detractors that we are not owing any bank other than Central Bank of Nigeria/Commercial Bank loans which are common to all the 36 states of Nigeria and that we do not owe any contractor other than retention fees which is less than Five Hundred Million Naira (N500,000,000.00) to date.
EXTERNAL DEBT STOCK
CREDITORS PURPOSE DEBT BALANCE TO DATE- DECEMBER, 2020 ($)
IDA Ebonyi State -HIV/AIDS Programme – IDA 2,655,237.63
IDA Ebonyi State – Health Systems Development -IDA 2,629,661.67
IDA Ebonyi State – Community Based Urban Dev. Project – IDA 14,351,471.67
IDA Ebonyi State – Universal Basic Education – IDA 2,355,969.31
IDA Ebonyi State – Community Based Poverty Reduction – IDA 3,240,990.50
IDA Ebonyi State – Comm and Social Dev. Proj. 4,207,327.16
IDA Ebonyi State Third National Fadama Development Project 4,462,645.06
IDA Ebonyi State Health System Dev. Proj. (Addtn Financing) 1,400,500.03
IDA Ebonyi State – Second HIV/AIDS Program Dev. Project 1,975,523.31
IDA Ebonyi State – Nigeria Erosion and Watershed Mgt Proj 21,063,613.72
TOTAL 58,342,940.06
Let me thank very highly, members of my old party PDP, especially the National Chairman and my State Chairman for the love we shared while I was there. I assure them that my leaving them is a journey of my destiny and no one should fight destiny.
Let me thank all members of my new Progressive level party APC, especially my brother, the Governor of Yobe State and National Chairman of my Party APC. My appreciation also goes to my new State Chairman, APC. I have found love and mutual respect in my new party APC. My gratitude again goes to the South East National Vice Chairman of my former Party, Mr. Augustine Umahi. The zone will soon find out that character and content are virtues that are not purchased in the market.
Let me thank my dear wife, my children and entire Umahi family for letting me work. Let me thank my Deputy Governor, his wife and the Chief Judge of Ebonyi State, entire Executive Council members, Government officials and Christian Association of Nigeria (CAN) for all their assistance.
Above all, we bless God for his benevolence and mercy who inspite of our shortcomings has seen us this far. We have laid an irreversible foundation for the future of our children where God is our chief cornerstone.
Mr. Speaker, Honourable Members, I cannot end this speech if I don't call our minds to the covenants that informed our vision and mission, the core values that guide our action plan and the divine Mandate manifesto that power our policy direction. God himself gave our government five folds Covenant. Taking a stock on all the principle of God's Covenant, we can say that God Almighty has been faithful to us. He has shown extra-ordinary love and kindness to Ebonyi People.
God Himself gave us a mission to enhance the welfare of our people and empower Ebonyians to be self-reliant and have a sense of esteem. Today, God has seen us through. God had given us the strength and uncommon passion to deliver to our people compassionately, transparently and God fearing governance based on integrity and dignity.
God has seen us through in the delivery of the 5-fold covenants and prophetic proclamation which we promised would come the way of our people under our regime. The Lord God has answered our prayers of making Ebonyi State truly the Salt of the Nation.
Challenging moments often come but God upholds us with His gracious power. In times of trouble and tribulation, we are reminded that "He that dwelleth in the secret place of the Most High shall abide under the shadow of the Almighty "(Psalm 91:1). With God, we see greater heights in our socio-economic aspirations.
Mr. Speaker, Honourable Members, let me at this juncture state that the Divine Mandate under which we have made these accomplishments came by the power of God and so we fear no daunting challenges. We believe that the principles and spirit of this budget will further lift the economic development index of the State, consolidate on the gains of infrastructure and Human Capital Development and bring greater accomplishments in the transformation of this State. Through our zero oil initiatives, we shall promote self-reliance and robust economy through socioeconomic diversification that will reduce reliance on Federal allocation and encourage local content in our domestic economy and ultimately increase the income base through internally generated revenue.
We shall secure the future of Ebonyi children through education and public and private sector expansion to stimulate economic growth, stability and sustainability, and thus drive towards poverty alleviation, and self-sufficiency in food production through massive agricultural revolution that will in.
DR. DAVID NWEZE UMAHI, EXECUTIVE GOVERNOR OF EBONYI STATE
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