GOVERNMENT OF NASARAWA STATE BUDGET OF RENEWED COMMITMENTSPEECH DELIVERED BY HIS EXCELLENCY, ENGR. ABDULLAHI A. SULE, EXECUTIVE GOVERNOR OF NASARAWA STATE, AT THE PRESENTATION OF YEAR 2024 FISCAL APPROPRIATION BILL TO THE NASARAWA STATE HOUSE OF ASSEMBLY, LAFIA: TUESDAY, 28THNOVEMBER, 2023The Right Honourable Speaker;Principal Officers and Honourable Members of Nasarawa State House of Assembly.Today marks yet another significant milestone in our renewed commitment to bequeath a legacy of good governance, sustainable peace and socio-economic prosperity to the people of Nasarawa State. It is, therefore, with gratitude to God, Almighty that I stand before you, Honourable Members of the Nasarawa State House of Assembly to present the 2024 Appropriation Bill in compliance with section 121(1) of the 1999 Constitution of the Federal Republic of Nigeria (as amended). Once again, I consider this as a unique opportunity and privilege to perform this constitutional duty before this hallowed chamber as Governor of Nasarawa State.The Right Honourable Speaker, Honourable Members, it will be recalled that last year, I stood before this Honourable House and presented the 2023 Budget tagged; “Budget of Consolidation and Continuity” which saw to the implementation of policies and programmes, aimed at consolidating on our developmental drive.I commend the Rt. Honourable Speaker and Honourable Members of the House of Assembly for the expeditious action you always displayed each time the State’s appropriation bill is presented before you for consideration. This is a demonstration of our collective commitment to engender good governance to our people.As you are aware, since coming on board, this Administration has remained resolute in its resolve to implement policies and programmes aimed at uplifting the living standard of our people and transformation of the State, thus becoming the beehive of socio-economic activities now.This is evident in our modest efforts in the construction of road networks and other physical infrastructure, provision of social amenities, healthcare service delivery, education, agriculture, economic empowerment and, indeed, robust investment opportunities. This is taking into consideration of our core principles anchored on transparency, accountability, probity, and prudent management of State resources.Mr. Speaker, Honourable Members, it is pertinent to remind you that the 2023 Budget performed optimally as we recorded tremendous improvement in our inflows which also translated in the execution of our policies and programmes. I am pleased to inform this Honourable House that most of the road constructions, hospitals, sports facilities, school infrastructure, power and water projects, as well as provision of market facilities, among other projects are either completed or on the verge of completion.I need to point out that on security, this Administration has sustained its synergy with security agencies and remained consistent in the provision of logistics support and operational equipment, as well as working tools to support and ensure effective protection of lives and property of our people in the State.Mr. Speaker, Honourable Members, as you are aware, in our commitment to improve the economic frontiers for the overall development of the State, we have established the Nasarawa State Investment Development Agency (NASIDA), geared towards enhancing economic prosperity, investment portfolio and the business environment for the general wellbeing of our people. This development has so far attracted several investments especially in agriculture and mining sectors, as well as the oil & gas which led to the drilling of Ebenyi-A Oil Well in Obi Local Government Area. Most recently there is the discovery of other minerals including lithium in Nasarawa Local Government Area of the State. Government is also utilizing its various assets, including markets development, Fertilizer Blending Plants for local fertilizer production, among others through the Public Private Partnership (PPP) initiative. It may interest you to note that we have also signed a joint venture Memorandum of Understanding (MoU) for the establishment of the Nasarawa Technology Village in Aso-Pada, Karu Local Government Area of the State. This is in addition to other developmental endeavours currently going-on in the State.In our commitment to strengthen the State Public Service for enhanced productivity, Government has continued to commit enormous resources for the training and retraining of Public Servants and other welfare in order to ensure that our personnel feel well-motivated for enhanced performance. This is why even with the constraint of funds, Government implemented the backlog of promotion of Civil Servants service wide. It is pertinent to note that Government recently approved the outstanding promotions of deserving Civil Servants in the State to place the Service in its appropriate pedestal. This gesture is being extended to the Local Government Councils to enable its employees to benefit. It is heartwarming to state that Government absorbed and issued permanent and pensionable appointments to about one thousand, five hundred (1500) casual workers, including the staff of the Nasarawa State House of Assembly who were engaged since the creation of the State. This gesture of Government will enable this category of staff pursue their various careers in the Civil Service.In our determination to improve the living standard of our people, Government restored the 100% payment of monthly pension to the State retirees. This course of action has transformed the living condition of our retirees in the State. Government also addressed the percentage payment of pension and salaries of Local Government Employees. As at today, this Administration stabilized the payment of salaries of workers and pension of Local Government retirees at 100%.On infrastructural development, Government embarked on the construction and rehabilitation of urban roads to give our urban centres befitting outlook. In this regard, we have since completed the Shinge-Ricemill-Kilema road, Mararaba to Udege road and the 15.5km Asphalt Sisinbaki-Kwarra road projects, considering the huge potentials that abound in these places. Similarly, Government constructed the Al-makura and Abuja Street roads and other roads within the Lafia metropolis, including the GRA-Bukan Ari Road and the dualization of Shendam Junction-Government House-Akurba Roadin order to create road networks within the State capital. Similarly, we have also signed a Memorandum of Understanding for the development of Gurku-Kabusu mega city project. We have also just received the approval from the Federal Ministry of Works (FMW) for the dualization of the Akwanga township road. Still awaiting the approval of the Lafia underpass road.On rural development, Government embarked on the construction and rehabilitation of rural roads across the State in order to open our rural communities for overall development of the State.In the power sector, we have facilitated the completion and full take-off of the Akurba Power Substation in order to promote industrialization and development of small scale businesses in the State. Similarly, we have constructed the 7.5MVA Injection Substation in Doma which is capable of supplying electricity to Doma town and neighbouring communities. Just yesterday, I also approved the repairs and maintenance of the substation. We have also provided electricity and installed transformers in Loko and some communities across the State. This is in addition to the 2km Solar Power Street Light facilities in all the thirteen (13) Local Government Areas of the State and in strategic locations in Lafia metropolis. It is important to state that this Administration is determined to open vista of commercial activities in the State. Accordingly, Modern Markets were constructed in Keffi, Nasarawa-Eggon and Akwanga as well as the modern bus terminals in Karu and Lafia. I am happy to inform you that constructions of additional Modern Markets in Awe, Wamba and Nasarawa are ongoing. Those of Kokona and Doma are also earmarked for construction and to begin in no distant time.I need to state that this Administration accords priority to healthcare delivery for the wellbeing of our people. It is for this reason that we have established the Nasarawa State Health Insurance Agency (NSHIA) to make healthcare services accessible and affordable. I am happy to state that the Agency intends to enroll additional beneficiaries from the informal sector, particularly, the indigent and vulnerable members of the society in addition to the existing ones as part of palliative measures to cushion the effects of the removal of fuel subsidy and to ensure universal health coverage. We will endeavour to provide affordable healthcare services and infrastructure at tertiary, secondary and primary levels for the wellbeing of the people of Nasarawa State.Our Administration also expanded the structures and other facilities of the Dalhatu Araf Specialist Hospital (DASH), Lafia which ensured its seamless transition to the Federal University of Lafia Teaching Hospital. The additional structures provided in the hospital have since been put to use for the benefit of the people. In the same vein, the Modern Hospitals in Akwanga and Nasarawa have been put to use by the Hospitals Management Board.We have completed and put to use the Nasarawa State Infectious Disease Diagnosis and Research Centre for the treatment of different ailments. The Centre is considered one of the best diagnostic centres in the country. Furthermore, the newly constructed School of Nursing, Lafia has been furnished and fully equipped. Government also upgraded some primary healthcare centres to general hospitals in order to create more access to healthcare facilities at the grassroots. We have built and equipped our health centres with modern facilities in line with global practices.Realizing the importance of education in our society, this Administration continued to commit enormous resources for the enhancement of our educational system. In this regard, we have facilitated the mass construction and rehabilitation of classroom blocks in our primary and secondary schools across the State. This is based on our conviction that conducive environment enhances effective teaching and learning.Similarly, we have employed about three thousand, five hundred (3,500) teachers into our State Secondary Schools. We have employed additional teaching and non-teaching staff in our State tertiary institutions. This is geared towards enhancing educational development of our dear State. In our commitment to encourage Science and Technical Education, we have established the Nasarawa State University, Keffi (NSUK) Faculties of Engineering and Medicine. I am happy to inform you that the University has commenced learning at the Gudi campus and matriculation is on Tuesday, 5th December, 2023. As part of our deliberate efforts towards empowering our teeming youths and women, we have established the Wing Commander Abdullahi Ibrahim Technical Institute in the State. The Institute has been engaging our youths in meaningful ventures with a view to open vistas of opportunities towards wealth creation, employment generation and poverty alleviation in the State. I am happy to inform you that the Institute has been partnering with the Industrial Training Fund (ITF) and other development partners to train our youths in different skills for entrepreneurial development, wealth creation and self-reliance. We have upgraded the Lafia Township Stadium to modern standard in order to encourage sporting activities.Mr. Speaker, Honourable Members, in our commitment to improve the living condition of our people, we have initiated the Nasarawa State Cash Transfer Scheme, where beneficiaries receive the sum of N5,000 as stipend on monthly basis. This programme has been impactful and uplifted the living condition of the poor and the vulnerable citizens in the State. I am happy to inform you that Government has already identified another set of beneficiaries and arrangement is being concluded for another phase of the exercise to receive the sum of Seven Thousand Naira (N7,000.00) only each. This will no doubt enhance the living condition and wellbeing of the people in the State.At this juncture, Mr. Speaker, Honourable Members, may I take a little time to review the current fiscal year budget.REVIEW OF THE YEAR 2023 BUDGETMr. Speaker, Honorable Members, it would be recalled that on Tuesday, 22nd November 2022, a total Budget of (N148,958,122,525.05) only was presented for the year 2023. The Honourable House in its magnanimity passed into law the sum of (N149,315,944,207.62) only as the approved budget for the current fiscal year.The Rt. Hon. Speaker, Honourable Members, Government prioritized the following in the 2023 fiscal year.Sustaining and improving general security and good governance.Completion of on-going projects.Commitment to workers’ welfare through promotion.Creation of employment opportunities for women and youth in the State.Provision of inputs and supporting Agriculture as a way of increasing production, developing value chain and strengthening commercial ventures for a stable economy.Development of infrastructure through Public Private Partnership (PPP) as well as enhanced investment.Let me reiterate that Government will not relent in its efforts towards strengthening internal control mechanisms in public finance management. Accordingly, Government will continue to review the monthly Overhead Cost and ensure strict monitoring of the activities of Ministries, Departments and Agencies (MDAs) in line with the fiscal expenditure framework of this Administration. This will further sustain our resolve for transparency and accountability. We have restructured the system for effective service delivery by separating Water Resources component from Ministry of Agriculture, strengthened the State Efficiency Unit, upgraded four Primary Healthcare Clinics to General Hospitals located at Azara, Aso Karu, Assakio and Gudi.Government envisaged an increase in the Statutory Revenue Allocation from the Federation Account and Internally Generated Revenue (IGR), as well as capital receipts which necessitated the increase in the 2024 budget. We are also mindful of the fact that we have not yet reached the desired peak of our IGR contribution to the State revenue. This Administration is determined to pursue vigorously all other sources of revenue due to Government and collect same at a minimal cost. To achieve this objective, the Nasarawa State Internal Revenue Service (NIRS) is now operating with high level autonomy.HIGHLIGHTS OF YEAR 2023 BUDGET The 2023 budget focused on the following areas: Completion of on-going projects;Enhancement of Internal Revenue Generation (IGR);Completion and construction of Infrastructures including rural roads and bridges;Creation of enabling environment for Public-Private Partnership (PPP);Intervention in Education to include Science and Technical Education;Improvement in Healthcare Service Delivery;Continued collaboration and meeting obligations with Development Partners and strengthening governance and institutions in line with global best practices; Agricultural Liberalization with emphasis on extension services, encouraging commercial farming and cottage industry for value chain;Solid minerals exploration and exploitation in collaboration with the Federal Government and partnership with investors as alternative sources of revenue generationPERFORMANCE OF THE 2023 BUDGETMr. Speaker, Honourable Members, Government envisaged revenue accruals from FAAC in the sum of N58.37 billion. Whereas (IGR) was anticipated in the sum of N37.62 billion and N48.50 billion as capital receipts. However, total collection from Federation Allocation between January and October stood at (N74,789,617,130.20) only representing 128.12%, while (N23,979,427,797.47) only was realized as Internally Generated Revenue (IGR) representing 63.74%. Moreover, the actual total capital receipt, which include Domestic and Foreign aid, grants and loans stood at (N14,107,650,728.35) only. This represents 29.09%. During the period under review, a total of (N57,425,259,412.04), was spent on Recurrent Expenditure representing 62.88%. This consist of Personnel cost (Including Pension, Gratuity and Death Benefits) of N31.02 billion (64.73%) and other running cost (including Debt Servicing and Security Vote) of N26.40billion (60.83%) as at October 2023.On the other hand, the sum of (N26,332,906,245.18) representing 45.41% was spent on Capital Projects.Mr. Speaker, Honourable Members, permit me to say that from the above performance, it could be deduced that the State witnessed a significant improvement in its inflow. There was surplus collection in some revenue components, notably among them are the Government Share of VAT, Exchange Gain and Special Allocation from FAAC. The Internally Generated Revenue also witnessed similar surpluses from Recovery of Taxes, Withholding Tax on Contract among others. This, however, informed our decision to fall back to the House for a review and amendment of the 2023 Appropriation, which we also presented.FISCAL RISK AND STATE GOVERNMENT FINANCIAL TREND IN 2023The Rt. Hon. Speaker, it is pertinent to state that, over the years, Government had continued to make frantic efforts to reduce recurrent spending to make capital expenditures perform at its best. However, it is obvious that recurrent expenditures have continued to increase, resulting from increase in the wage bill, including pensions, gratuities and recruitment to bridge the gap in critical sectors. This fact has been an impediment to our efforts to improve on the capital spending. Notwithstanding, Government will as a matter of importance continue to put in place policies that will see to the improvement of good governance that will reduce spending on recurrent while advancing for increase in capital expenditures. THE 2024 FISCAL APPROPRIATIONThe Rt. Hon. Speaker, Honourable Members, let me remind you that the State in conjunction with technical assistant from the Nigeria Governors Forum (NGF) has improved in the way we do our budget and reporting. With modification and perfection of the necessary principles, Government will continue to pursue standards and systems that will continue to improve accountability, transparency and prudence in the management of Government resources.Mr. Speaker, Honourable Members, Government’s focus in the 2024 fiscal year is as follows:Improvement in the general wellbeing and security of the people.Completion of all on-going projects started by this Administration. As always, encouraging and supporting agricultural production as a way of empowerment, improving production, developing value chain and strengthening commercial venture for a stable economy.Creating a conducive environment for the participation of the informal sector in income generation and sustainable productivity as well as attracting investors.PARAMETERS AND BASIC ASSUMPTIONS OF THE 2024 BUDGETThe fiscal trend experienced over the last few years saw a major increase in inflow to the State. This trajectory largely influenced the drawing up of the 2024 budget. This is because it remains the major source of revenue accruals to us as a State. We are also mindful of the fact that we have not yet reached the desired peak of our IGR contribution to the State revenue. However, this Administration is determined to pursue vigorously all other sources of revenue due to government and collect same at minimal cost. To achieve this, the Nasarawa State Internal Revenue Service is now granted the autonomy it has been yearning for, this, we envisage will encourage them to improve and boost our IGR collection. In addition, Inflation is still too high and increasing, borrowing costs are still elevated, and exchange-rate pressures persist. The following basic assumptions have been used as our guiding principles for the 2024 budget:Government intends to pursue all revenue due to the State from various sources which include taxes, refunds, recoveries among others. This Administration is determined to achieve economic growth through prudent management of resources and investment in areas that have direct bearing on the lives of the people. This will go a long way in sustaining the level of socio-economic development already achieved by this AdministrationMr. Speaker, Honourable Members, the macroeconomic assumption based on Nigeria Economic Outlook for the 2024 budget are as follows:Daily Oil production (Per barrel) at 1.78 million;Oil price benchmark of 77.96 US Dollars per barrel;Exchange rate of 750 Naira per US Dollar;Projected GDP growth rate of 3.76 percent.Inflation rate of 21.40 percent.ANTICIPATED REVENUE RECEIPTS IN 2024Mr. Speaker, Honourable Members, the total expenditure outlay for the 2024 estimate is in the sum of (N199,879,370,709.43).The 2024 Appropriation also anticipates revenue inflow of (N199,879,370,709.43). The budget framework shows an increase of (N50,563,426,501.81) or 33.86% upsurge against the 2023 budget. Details of these amounts are contained in the estimate’s document which I shall lay before you.The Rt. Hon. Speaker, Honourable Members, as you are aware, despite the economic challenges facing the State, this Administration has continued to pursue policies, programmes and projects geared towards meeting the yearnings and aspirations of our people. Worthy of note are the massive urban and rural roads infrastructure construction, healthcare delivery, markets development, water and power supply, increased allocation to education, health and agriculture sub-sectors, among others. However, Government will not relent in its efforts in embarking on new projects and vigorously pursue them for timely completion. It is in this regard that we tagged the 2024 Appropriation, “Budget of Renewed Commitment”.Accordingly, the budget is to be funded from the following anticipated revenue sources: A. Opening Balance of N3.56 billion.B. Federation Account:Statutory Revenue Allocation of N45.0 billion;Value Added Tax (VAT) of N27.50 billion;Exchange Gain of N7.50 billion;Special Allocation of N12.0 billion;Other Revenues from FAAC N4.95 billion.C. Internally Generated Revenue (IGR) of N43.30 billion;D. Capital Receipts (Aid, Grants & Deficit Financing) of N56.07 billion.EXPENDITURE ESTIMATE FOR YEAR 2024 BUDGETRecurrent Expenditure Mr. Speaker, out of the budgeted amount for FY2024, (N112,925,350,954.18) was earmarked for Recurrent Expenditure. The amount comprises (N54,079,872,865.13) for Personnel cost which include; salaries, CRF, Pension, Gratuities, and death benefits, representing 27.06% and running cost or other recurrent expenditure of (N58,845,478,089.05), dedicated for debt servicing, security vote and other government running cost, representing 29.44%.Capital ExpenditureCapital Expenditure, on the other hand, is going to gulp the sum of (N86,954,019,755.25). The analysis indicates that our recurrent to capital ratio is 56:44. This signifies that 56% of the budget will go to payment of salaries, debt repayment, liabilities of pension and gratuity arrears, security vote and other cost of running government’s day to day activities, while 44% will go to capital projects for infrastructure development, construction, rehabilitation, repairs and purchase of items for all sectors.2024 Total Budget Size The Rt. Hon. Speaker, Honourable Members, I am delighted to lay before you a total budget size of (N199,879,370,709.43) for the 2024 fiscal year.Sectoral Highlights Overall, the 2024 appropriation for the various sectors is as follows:Administrative Sector:Security & General Administration - N21.74 billionLegislation - N4.30 billionPension & Gratuity - N7.27 billionInformation, Culture & Tourism - N2.63 billionCivil Service Matters - N1.69 billionSector Sub-Total - N37.63 billionEconomic Sector:Agriculture - N9.65 billionFinance & Investment - N20.91 billionWorks, Housing & Infrastructure - N22.68 billionWater Resources & Rural Development - N4.12 billionLands & Physical Planning - N8.65 billionScience, Technology & Innovation - N1.78 billionSector Sub Total - N67.79 billionLaw & Justice Sector:Judicial Service Commission - N0.637 billionMinistry of Justice - N1.93 billionCourts (High Court, SCA, CCA) - N3.90 billionSector Sub Total - N6.47 billionSocial Sector:Education - N41.96 billionHealth - N27.49 billion Youth & Sports Development - N4.62 billionHumanitarian, Women &Social Development - N2.11 billionEnvironment & Solid Minerals - N5.50 billionLocal Government & Community Development - N6.31 billionSector Sub Total - N87.99 billionThe Right Honourable Speaker, Honourable Members of this Hallowed Chamber, this Budget is predicated upon our shared vision and determination to sustain the pace of development in our dear State. In this regard, and to achieve the success of this appropriation, therefore, we have the onerous task of brazing up to the challenges ahead of completing all on-going projects as well as strengthening our partnership to enable us realize our desired ambition of handing down a legacy that will be a sustainable support to take Nasarawa State to the next level by exceeding all expectations.Mr. Speaker, Honourable Members, let me reiterate that our strides in the service of our dear State would not have been possible without the commendable and worthy partnership of you, the Honourable Members. I commend this exquisite partnership and cooperation between the Legislature and the Executive which has continued to add value to our interdependence. It is apt to stress that our collective efforts towards the realization of our goals justify our faith to deliver our promises to the good people of Nasarawa State.The Rt. Hon. Speaker, Honourable Members, let me conclude this speech by calling on our citizens to renew their commitment towards the sustenance of peace and harmonious co-existence.I assure you that Government will continue to provide a conducive atmosphere for socio-economic development. On this note, Mr. Speaker, Honourable Members, it is my honour to lay before this Honourable House the 2024 Appropriation Bill tagged “Budget of Renewed Commitment” in the sum of (N199,879,370,709.43) for your kind consideration and speedy passage.I thank you most sincerely for your attention.God bless Nasarawa State.
December 02, 2023
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