Being Text of an Address by His Excellency, Alhaji Aliyu Akwe Doma, OON (Madauchin Doma), Executive Governor, Nasarawa State, during the Presentation of the 2009 Appropriation Bill to the Nasarawa State House of Assembly, Lafia, 31st December, 2008

PROTOCOLS:

I am delighted to have the honour of being welcomed into the hallowed chambers of this Honourable House to perform a constitutional responsibility which is crucial to the general welfare and progress of our people.

Mr. Speaker and Honourable Members, the task before me this morning, is to present for your consideration and endorsement, the 2009 Appropriation Bill. The Bill contains details of anticipated receipts and expenditure proposals for the next fiscal year.

We believe that a budget should be more than an annual ritual. It should articulate the intentions and plans of Government in terms of what it would do across the entire State, for a sustainable and improved condition of living of the people. Mr. Speaker, it is against this background that I am here today, to present the 2009 budget of Nasarawa State.

In doing so, I wish to acknowledge with appreciation the goodwill and commitment demonstrated by the Honourable House for taking time out of its well deserved recess and in the festive mood of Christmas and New Year, to reconvene to receive the budget. I cannot thank you enough for this gesture of support and sacrifice.

Review of the 2008 Budget

Mr. Speaker, this Honourable House would recall that the approved budget for the 2008 fiscal year was Fifty-five Billion, Seven Hundred and Twenty-two Million, Two Hundred and Eighty Thousand, Two Hundred and Sixty-four Naira (N55,722,280,264.00). The budget was predicated on our mutual desire to set a solid foundation and tone for our 13-point development agenda which spells out the mission, goals and priorities for an integrated transformation of the State.

Mr. Speaker and Honourable Members, permit me to mention that as at November 2008, out of the total anticipated revenue to the State, we realised the sum of Forty-one Billion, Eight Hundred and Ninety-six Million, Two Hundred and Sixty-two Thousand, Three Hundred and Ninety-six Naira (N41,896,262,396.00)

Out of these total receipts, the sum of Twenty Billion, Five Hundred and Fifty-one Million, Four Hundred and Sixty-five Thousand, Six Hundred and Eighteen Naira (N20,551,465,618.00) was expended on recurrent items. The capital expenditure totalled Nineteen Billion, Three Hundred and Eighty-three Million, Eight Hundred and Thirty Thousand, Three Hundred and Sixty-nine Naira (N19,383,830,369.00).

Mr. Speaker and Honourable Members, the need to lay a solid foundation for the sustainable socio-economic transformation of the State, informed the substantial allocation to capital expenditure. This was aimed at providing necessary infrastructures and services which were programmed towards the achievement of our 13-point agenda. Our major achievements in this direction, include:

1. The construction and rehabilitation of 334 kilometres of roads across the State.
2. Payment of our counterpart contribution for the construction of the Guto-Bagana road project.
3. Construction of basic infrastructures to upgrade our urban centres.
4. Expansion and rehabilitation of water supply schemes in Lafia, Doma, Akwanga, Nasarawa Eggon, Keana, and Nasarawa.
5. The construction of 500 housing units for Civil Servants in the State.
6. Preparation of Masterplans for our urban centres.
7. Procurement of agricultural machineries and assorted fertilisers.
8. Upgrading to status of the infrastructural facilities at the State House of Assembly.
9. Completion of abandoned public buildings.
10. Establishment of Nasarawa State Economic Empowerment Programme and the expansion and upgrading of all Relevant Technology Centres in the State.
11. Capacity building in the Public Service.
12. Collaboration and support to Federal Agencies in the State.

Mr. Speaker, let me at this point state that the challenges of the national and global economies in 2008 partly affected the implementation of the State budget. These developments not withstanding, we were able to record overall budget performance of 71.6 percent.

The 2009 Budget

Mr. Speaker, I need to point out that the prevailing economic meltdown, declining price of crude oil and double-digit inflation greatly influenced the preparation of the 2009 budget. We had to be guided by the Federally agreed benchmark of Forty-five dollars ($45.00USD) per barrel of crude oil in the budget preparation exercise.

Our assumptions for the 2009 budget are as follows:

1. Completion of all on-going projects initiated by this and previous Administrations;
2. Commencement of important projects that can be completed within the tenure of this Administration;
3. Settlement of inherited liabilities;
4. Stricter expenditure control;
5. Stringent budget monitoring and fiscal discipline;
6. Aggressive revenue drive.

Mr. Speaker and Honourable Members, the 2009 appropriation bill is the aggregate product of interactions between the three arms of government. It is tagged BUDGET OF CONSOLIDATION.

We are determined, Mr. Speaker, to improve on the successes we have achieved in the implementation of the 2008 budget. It is against this background, that the policy thrust of the 2009 budget shall be:

1. Development of sectors of comparative advantage, such as, – Solid Minerals, Agriculture and Tourism – which have the capacity to generate mass employment, boost production and attract private investments;
2. To maximise the advantages associated with our proximity to the Federal Capital Territory through the establishment of industrial, commercial and housing estates;
3. To strengthen our commitment to urban renewal programmes towards the improvement of living conditions in our urban centres;
4. To provide enabling environment for socio-economic activities and the development of a viable private sector;
5. To sanitise and control land administration in the State;
6. To revamp and upgrade our health and education sectors to comparable status;
7. To pursue our rural development agenda with emphasis on rural water supply.

Mr. Speaker, let me now have the pleasure to present to this Honourable House the highlights of the 2009 Appropriation Bill. The Bill proposes a total expenditure of Fifty-eight Billion, Three Hundred and Eighty-three Million, Two Hundred and Fifty-eight Thousand, Five Hundred and Sixteen Naira (N58,383,258,516.00). The figure shows an increase of Two Billion, Six Hundred and Sixty Million, Nine Hundred and Seventy-eight Thousand, Two Hundred and Fifty-two Naira (N2,660,978,252.00), representing an increase of 5% over and above the 2008 budget.

The budget is to be funded from the following anticipated revenue sources:

1. Statutory Revenue Allocation of Twenty-five Billion Naira (N25,000,000,000.00)
2. Excess Crude Oil Receipts of Three Billion, Three Hundred and Ten Million Naira (N3,310,000,000.00)
3. Value Added Tax (VAT) of Four Billion Naira (N4,000,000,000.00)
4. Internally Generated Revenue of Ten Billion, Two Hundred and Twenty-seven Million, Six Hundred and Seventeen Thousand, Five Hundred Naira (N10,227,617,500.00)
5. Grants and loans totalling Eleven Billion Naira (N11,000,000,000.00)
6. Miscellaneous receipts of Four Billion, Eight Hundred and Forty-five Million, Six Hundred and Forty-one Thousand, Sixteen Naira (N4,845,641,016.00)

The sum of Thirty-four Billion, Seven Hundred and Thirty Million, One Hundred and Sixty-four Thousand, Two Hundred and Five Naira (N34,730,164,205.00) representing 59% of the budget, is earmarked for capital expenditure, while the sum of Twenty-Three Billion, Six Hundred and Fifty-three Million, Ninety-four Thousand, Three Hundred and Eleven Naira (N23,653,094,311.00) representing 41% is earmarked for recurrent expenditure.

The major allocations in the 2009 budget are as follows:

1. Works and Transport             N11billion
2. Education             N6.6billion
3. Legislature             N4billion
4. Urban Development             N3.4billion
5. Health             N3.2billion
6. Water Supply             N2.2billion
7. Agriculture     N2.1billion
8. Counterpart Contributions       N1.8billion
9. Tourism and Culture        N1.4billion
10. Lands, Survey and Town Planning        N1.4billion
11. Judiciary       N1.3billion

To achieve the objectives of the budget, appropriate mechanism has been put in place for effective implementation.

Works and Transport – In line with our commitment to complete all projects started by this Administration, adequate provisions have been made in the budget to ensure the completion of all the on-going road construction projects. Furthermore, provisions have been made for the commencement of construction work on the following roads:

1. Gudi-Rinze-Nunku Road;
2. Adudu-Azara-Wuse-Akiri-Plateau Border Road;
3. Doma-Nasarawa-Orozo-Abuja road;
4. Rehabilitation of 200km of feeder roads; and,
5. Counterpart contribution for the Guto – Bagana road project.

A direct labour agency shall be established to handle feeder roads and related projects.

Power Supply - Electricity is a basic requirement for economic growth. Government therefore intends to pursue more vigorously, the completion of the Farin-Ruwa Independent Power Project.

The possibility of using the rich coal deposits at Obi for power generation is also being explored. Nasarawa State Energy Company Limited has been incorporated to handle all matters relating to power supply in the State.

Housing – Mr. Speaker, housing is one of the 13-point agenda of this Administration. Accordingly, adequate provision has been made in this budget for participation in Public-Private-Partnership initiative. In the same vein, the construction of 2,500 housing units to be located in Lafia, Doma, Akwanga, Keffi, Karu and Nasarawa is proposed. The partnership arrangement between the Federal and Nasarawa State Governments and private investors for the construction of Six Thousand (6,000) housing units at Auta Balefi, in Karu Local Government Area, shall be vigorously pursued.

Water Supply – This Administration is committed to the provision of potable water supply to our rural population. All water projects started by this Administration shall be completed. Similarly, all abandoned solar-powered borehole projects across the State shall be completed. Nasarawa township water supply scheme shall be expanded and upgraded, while Obi and Toto water schemes shall be rehabilitated. New water supply schemes shall be started at Wamba and Assakio. Furthermore, Three Hundred (300) new boreholes fitted with hand pumps shall be sunk in various communities throughout the State.

Commerce and Industry – To promote commercial activities in the State, efforts will be made to complete the on-going modern markets in Lafia and Keffi. Karu International Market shall be put to proper use during the year. New markets shall be built in Akwanga and Doma. The objectives of our Economic Empowerment initiative shall be pursued with vigour, while the Skills Acquisition programme shall take off as planned.

Mr. Speaker, I am happy to inform this Honourable House that all regulatory measures preparatory for the take-off of the State Micro-Finance Bank in the first quarter of 2009 have been put in place.

In conformity with the private sector driven posture of Government, all State-owned companies will be restructured and strengthened with appropriate equity to make them more efficient and to operate in accordance with their mandate as limited liability companies. These companies include:

1. Nasarawa Investments and Property Development Company Limited
2. Nasarawa Transport Service Limited
3. Nasarawa Produce Development and Marketing Company Limited
4. Nasarawa State Energy Company Limited
5. Nasarawa Publishing Company Limited
6. Farin Ruwa Tourist Resort Limited
7. Nasarawa State Solid Minerals Development Company Limited

Arrangements have reached advanced stage for the construction of a 3-star hotel in Lafia, in keeping with our tourism development efforts. This project is to be executed under a Public Private Partnership arrangement.

Solid Minerals – Nasarawa State is the home of solid minerals. Government will therefore leave no stone unturned in its efforts to exploit this natural resource in collaboration with the Federal Government and private investors. Artisan miners shall be encouraged to form cooperative societies so as to eliminate the incidence of illegal mining and to legalise their operations and maximise profit. The Nasarawa State Solid Minerals Development Company Limited is now fully operational.

Urban Development – The 2009 budget has provided for the construction of:

1. A dual-carriage road from the Shendam Road junction in Lafia to Akurba village;
2. The construction of Lafia Eastern by-pass; and,
3. The construction of township roads in Karu and other urban centres in the State.

Education – Mr. Speaker, guided by the recommendations of the Education Reform Committee, adequate provision has been made to revamp the education sector through the provision of necessary infrastructures, instructional materials, teacher recruitment and the provision of more classrooms at all levels of our educational system.

Agriculture – Agriculture is the main occupation of our people and the bedrock of our economy. Provisions have therefore been made to maximise agricultural production through large-scale cultivation of crops for both local consumption and export. To this end, more agricultural tractors and machineries shall be purchased as well as assorted fertilisers and agro-chemicals. The NADP Livestock complex in Lafia shall be reactivated and commercialised while the Agro-Export Processing Centre at Keffi shall be completed. Efforts shall be made to take full advantage of the National Agricultural Policies and incentives for the benefit of our farming population.

Health – Our healthcare delivery system shall be reorganised, restructured and strengthened. Emphasis will continue to be placed on preventive, rather than curative healthcare. Government will renovate, rehabilitate, re-equip and upgrade the various medical centres in the State. A new drug revolving regime shall be evolved to access drugs and medicaments to our people. The budget has also provided for our counterpart funding of MDG programmes in the State to enable us attract more interventions. A new machinery shall be put in place for the implementation of the free medical service for pregnant women and children under five.

Civil Service – The Civil Service is the engine room for policy implementation. The Service will be further strengthened to ensure efficient service delivery. Training and manpower development shall be emphasised. More incentives shall be provided for Civil Servants to enhance their productive capacity. The 500 housing units in Lafia for civil servants shall be completed during the year.

Sports Development – A befitting stadium is planned for Lafia, the State capital. The existing mini-stadium in Keffi will be upgraded while necessary facilities shall be provided at the Sports Academy in Akwanga. The State Sports Commission shall be reorganised and strengthened.

Community Development – Mr. Speaker, I need to point out that no government has the capacity to meet all the needs of the people. I therefore wish to use this opportunity to urge our various communities to embark on self-help projects to supplement Government efforts. In the 2009 fiscal year, community development projects will attract more matching grants from Government.

The Legislature – Conscious of the importance of the legislature as a veritable arm of Government in a democracy, this Administration shall ensure the completion of the renovation and upgrading of the House of Assembly complex. It is envisaged that when completed, Nasarawa State House of Assembly will rank among the best in the country.

The Judiciary – This Administration is committed to facilitating quick and prompt dispensation of justice. In this connection, more courts shall be constructed to provide the enabling environment. Other necessary facilities and incentives shall also be provided.

Internal Revenue Generation – Mr. Speaker and Honourable Members, you are no doubt aware that the bulk of our revenue is derived from the Federation account. This situation is not healthy for the long term growth and development of the State.

Consequently, Government intends to strengthen its internal revenue generation mechanism so as to improve revenue collection in 2009. At this juncture, I will like to appeal to all and sundry to support our efforts in revenue generation.

The State Board of Internal Revenue Service shall be restructured and overhauled to enhance its efficiency. New revenue sources shall be explored and the current rates, levies and fees shall be appraised for review, in line with the current economic realities.

Conclusion:

Mr. Speaker and Honourable Members of the House, in concluding this address, I would like to once again thank God, the Almighty and the good people of Nasarawa State for the opportunity granted us to lead the State at this point in our history. We have come a long way in our short period of existence as a State. However, we still have a long journey ahead of us in our desire for accelerated progress and development.

The economic reality of the time dictates that we must hurry slowly. The enormity and weight of the challenges before us would certainly task our ability and skills in the management of scarce financial resources in the face of competing demands. The situation calls for flexibility, adaptability and prudence.

Mr. Speaker, permit me to express my profound gratitude and appreciation to the entire people of Nasarawa State, particularly our Traditional Rulers, Community Leaders, Religious Leaders, Security Agencies, the Political class and the workforce for the unflinching and unalloyed support this Administration continues to enjoy from everyone. This support, no doubt, is responsible for the pace of development we have witnessed in the last one year. I urge us all to continue to work for a secure, peaceful and prosperous Nasarawa State by sustaining understanding and mutual respect for one another at all times.

Mr. Speaker and Honourable Members, I wish you all the best of luck in your service to the people. And may you have a happy and prosperous New Year.

On this note, it is now my pleasure to present to this Honourable House, the 2009 Appropriation Bill which is tagged Budget of Consolidation.

Thank you for your attention.