Full Speech of Ogun State Governor, Dapo Abiodun At 2020 Budget Presentation

Tuesday, December 10, 2019 / 01:27 PM / by  Platform Times / Header Image Credit: @OGSGofficial

 

Being address delivered by the Governor of Ogun State, His Excellency, Prince (Dr.) Dapo Abiodun, MFR, at the presentation of the 2020 appropriation bill to the State House of Assembly, held on Tuesday, 3rd December, 2019.

 

Protocols,

It is exactly 187 days today that I took the solemn oath as the Chief Executive Officer of this great State. On that day, the 29th day of May, 2019, I was conscious of the responsibility of my office and had no doubt the task ahead would require my all.

 

Mr. Speaker, Honourable members of the Ogun State House of Assembly, distinguished guests, ladies and gentlemen, join me in giving all glory to God Almighty, the creator and giver of life, for giving me the privilege to standing here today before this hallowed Chamber, I wish to reaffirm my oft-stated position that the social contract I have, is a tripartite covenant between me and God, on one part. And on the other part, to serve Him and reciprocate His faithfulness through the journey so far by being a tool to bring the greatest good to the greatest number of the people of Ogun State. That contract translates to being just, equitable, fair, transparent, participatory, inclusive and to respect the rule of law. These to me are all that democracy preaches.

 

1. Today, I stand before you, the Representatives of the people of Ogun State and with our leaders and other stakeholders as witnesses to history, to perform one of the major statutory functions of my contract with our dear people of Ogun State. I am here today to present the maiden edition of the Budget titled "Budget to Build Our Future Together" the first since the inception of our Administration on 29th May, 2019. This, therefore, makes today, Tuesday, 3rd rd December, 2019, a special and important day in the annals of our Administration in Ogun State. And, by every standard, beyond the statutory obligation of to do this presentation ceremony, it is for me an opportunity to lay bare our vision and mission to giving our dear Ogun State; a good, focused and qualitative governance and to creating an enabling environment for accountability, transparency, equity and fairness in the conduct of government affairs, towards creating an enduring economic future for Ogun State and individual prosperity for our people.

 

2. As a matter of fact, this is in consonance with our promises. , we are committed to joining hands with our people to building our dear State together, and try, as much as possible, to observe due process in doing so in achieving this.

 

3. Mr. Speaker, let me recall that, on 29th May, 2019, I signed the Oath of Allegiance and Oath of Office not for the fulfillment of the formal requirement as Governor, but for the tripartite covenant between me and God, on one part, to serve Him and reciprocate His faithfulness through the journey so far by being a tool to bring the greatest good to the people of Ogun State, irrespective of their geographical location, gender, religious or political affiliation, and/ or their economic stratification. And, on the other part, it is also a covenant with the people of Ogun State. This was is deliberate, not only to portray the conduct of Omoluabi expected of an Omo Teacher, but also to serve diligently, and sincerely and in good conscience. Our Administration will continue to; make the interests of the people the core of governance and not to betray their trust and mandate in order to; and, build, collectively with the people, an enduring future for our dear State. This is the rationale behind the much talked-about mantra: Building our Future Together Agenda.

 

4. What we promised was to restore Government as the core purveyor of Development. So , far, we have embarked on a programme of actions anchored on non-negotiable imperatives and key institutional framework, which include: providing employment for our teeming youths, through the establishment of Ogun Job Portal.

expanding the States economic base in the context of Public-Private-Partnership;

reforming the machinery of government, which includes initiatives such as:

Capacity building for Ogun State Public Service and improved welfare;

Establishment of Ogun State Public Works Agency;

Investment Promotion and Facilitation Agency (OGUN INVEST);

Fiscal Responsibility Commission;

Public Private Partnership Office;

Digital Transformation Agency;

Procurement Agency;

ServiceGovernment Delivery Units;

Industrial Parks;

Agro Processing Parks;

Value Chain Clusters.

 

We have categorized our approach into two, the Enablers and the Pillars which have continued to manifest positively in the successful implementation of our policies and programmes, particularly the Building our Future Together Agenda, in these six months of our Administration in Ogun State.

 

Our Administration is committed to restoringe government to the forefront as the facilitator of development. Towing this path, right from the first day of our Administration in office, we hit the ground running by carefully mapping-out a practical approach that will engender a symbiotic relationship between our Administration and the people of Ogun State towards ensuring a more rapid improvement on the lot of our people and the economy of our dear State. Our immediate programme of action was thus anchored on non-negotiable imperatives and key institutional framework, which include:

providing employment for our teeming youths

expanding the States economic base in the context of Public-Private-Partnership;

reforming the machinery of government, which includes:

Ogun State Public Service;

Ogun State Public Works Agency;

Investment Promotion and Facilitation Agency;

Fiscal Responsibility Commission;

Public Private Partnership Office;

Digital Transformation Agency;

Procurement Agency;

Service Delivery Units;

Industrial Parks;

Agro Processing Parks;

Value Chain Clusters Approach.

 

Our vision is to create an enabling environment for a Public-Private Partnership to thrive, which is very fundamental to the creation of an enduring economic development and individual prosperity of the people of Ogun State. We have categorized our approach into two, the Enablers and the Pillars which have continued to manifest positively in the successful implementation of our policies and programmes, particularly the Building our Future Together agenda, in the last six months of our Administration in Ogun State. For example, we appreciate that good governance is all about the people. The major elements of good governance are that: it is people-centered; it is a commitment to ensuring a free, fair, and just society that promotes equity, fairness, and justice to all our people irrespective of age, gender, religious or political affiliation or their geographical location; it is a transparent public finance management system; and, it is a commitment to providing an atmosphere that guarantees a more prosperous life for our people.

 

5. Mr. Speaker, Honourable Members of the State House of Assembly, our dear Leaders, Distinguished Ladies and Gentlemen, it may interest you to know that, in line with our Administrations strategic imperatives and implementation road map, we have been able to set up the building blocks for sustainable development of our dear State. These are encapsulated under an acronym for our five strategic Pillars that are essentially I.S.E.Y.A out of which the bases (Enablers) of our programmes and projects shall continue to be built on. Let me now highlight the I.S.E.Y.A pillars.:

 

i. Infrastructure

Infrastructure, for us, is key to development. We have been able to demonstrate our commitment to the continued socio-economic development of our dear State, particularly in Education, Health, Infrastructure and other key sectors that have direct and positive impact on our people. You will recall that we requested that our people select the roads that should attract immediate attention in each of the 236 wards across our dear State. These roads are receiving immediate intervention. This is in addition to governments identified projects that will be spread across the three Senatorial Districts of our dear State.

 

We have started the rehabilitation of rural and township roads across the 3 Senatorial Districts of our dear State. This necessitated the establishment of the Ogun State Public Works Agency (OGPWA) which has proven to be an dynamic, efficient, progressive responsive and cost-effective strategy of rehabilitating existing roads. This measure became necessary because of the bad condition of most of our roads. We have started with some in the last few months. The OGPWA is today ubiquitous present and visible in different parts of our dear State, working round the clock to fix the following roads among other assignments:

 

Ogun West:

Sango-Ota-Lagos Road;

Osi-Ota-Awolowo-Navy-AIT Road.

 

Ogun East :

Itokin-Ibefun-Ijebu-Ode Road;

Sagamu-Ijebu-Ode-Sapade Road;

Asafa-Oke-Degun Road;

Iperu-Ilisan Road;

Siun-Ogere-Iperu road;

Balogun Kuku Road in Ijebu-Ode;

Oba Erinwole Road, Sagamu.

 

Ogun Central:

Adigbe-Opako road;

Abeokuta-Sango-Ota-Lagos road.

 

The establishment of OGPWA is part of our commitment to accelerate massive road rehabilitation towards enhancing job creation, poverty alleviation, and food security, for the individual prosperity of our people, including the commuters, and open up the locked areas to development, and generally ease commuting and movement of goods and materials; thereby ensuring the continued growth of our dear States economy.

 

Opening up our rural roads, in particular, will boost agriculture and development of Micro, Small and Medium Enterprises (MSMEs). I must inform you that we have also identified areas where we need to direct our immediate attention. For example, our industrial hubs- Agbara-Atan-Ota Axis; Ewekoro-Ifo Axis; Sagamu-Ogijo Axis; Sagamu-interchange-Kobape Abeokuta Expressway Axis; Ilaro- Ibese Axis; etc among others. We also recognise that to take full advantage of our proximity to Lagos, we have embarked on some key joint initiatives with Lagos State government. First, we have presented a joint request to the President to release two major expressways to the two states for rehabilitation and maintenance in collaboration with private sector partners. These roads are Lagos Otta - Abeokuta Expressway and Ikorodu-Sagamu road. This request is receiving attention and being vigorously pursued. The second and even broader collaborative initiative is the establishment of Lagos-Ogun Joint Development Commission. This commission will focus on a number of issues, particularly along our border towns. The focal areas include infrastructure, physical planning, security, transportation management and revenue. In fact On our own, the contracts for the 13.4 km Epe-Ijebu Ode Road and others would soon is being perfected and will soon be awarded.while we are currently perfecting the paper work with the Lagos State Government for a Joint Development Commission on road infrastructure towards fast-tracking the construction of Sagamu-Ikorodu Road; Lagos-Ota-Abeokuta Road and other roads linking our neighbouring States. This is not to forget our rural roads to boost agriculture and development of Micro, Small and Medium Enterprises (MSMEs).

 

ii. Social Welfare And Well Being

Security In the area of security, we have continued to complement the efforts of the Federal Government by supporting all the security agencies in our dear State. It is only when security is assured that individuals can venture out in search of their livelihood and to meet other basic needs such as food, clothing, shelter and self-actualization. And, for a society state that desires more private investment, there is the need to assure the citizenry and investors of safety of their lives and investments. It is on this significant premise that we reinvigorated amended the law establishing the Ogun State Security Trust Fund, reinvigorated the Fund and which is made its private sector driven to provide the needed finances, ensure accountability and good corporate governance. The Chairman of the Fund is Mr. Bolaji Balogun, Chairman of Lafarge. Although, we are aware that security agencies are on the Exclusive List of the 1999 Constitution of the Federal Republic of Nigeria, we have resolved to continue to support these agencies because the lives and property for which they provide security are that of the people of our dear State. In this regard, We we have provided over 100 patrol vans, 200 motorcycles and other security gadgets to strengthen the security apparatus in our dear State, to provide a conducive atmosphere to help nurture the individual potentials of our people and for businesses to thrive.

 

Health - To address infrastructural and staff deficits in the health institutions, our Administration has commenced the rehabilitation of the primary health centres in each of the 236 wards of our dear across State. We have also approved the immediate recruitment of medical doctors, nurses, pharmacists and other medical personnel for the Olabisi Onabanjo University Teaching Hospital (OOUTH), Sagamu and our other medical facilities. We have renovated The State Hospital, Ilaro has been renovated and this will be extended to other state health facilities. Whilst addressing the manpower shortage and embarking on physical renovation, our attention is also on procurement of medical equipment in the State hospitals. Some of the recently procured equipment include, anaesthesia machine, oxygen concentrator, and delivery beds as well as construction of standard dialysis units. Furthermore, and conducted a number of Medical Outreaches have been conducted in different parts of the state to address some common health issues, sensitise and create awareness and also obtain data on the prevalence of health conditions amongst our people. We have equally embarked on procurement of medical equipment in the State hospitals across our dear State. These include, anaesthesia machine, oxygen concentrator, and delivery beds as well as construction of standard dialysis units, etc. We have also started the review of the State Health Insurance Scheme by instilling health insurance culture in the people of Ogun State, to facilitate prompt expand access to health care and lessen the unplanned financial burden payment of medical bills in our hospitals. In addition to free medical outreaches established, we have made provision for nutritional care in all the State-owned hospitals and health facilities across the State, as a means of providing a systematic and comprehensive foundation for healthcare delivery. Our mission, in this regard, is to ensure the well-being, wellness and welfare of our people.

 

We have also launched Let me mention Okowo Dapo, a micro credit scheme that provides a window for women to access financial resources. It empowers our people to expand their micro and small businesses. Beyond finance, This informed our decision to organize there is also MSMEs Clinic for face-to-face interaction between the entrepreneurs and Business Development Organisations and financial institutions such as SMEDAN, GIZ, BOI, and National Association of Micro-Finance Banks (NAMB) towards gathering data on the activities of the entrepreneurs across our dear State and providing business development services. If women are generally regarded as vulnerable, the widows are even more so. Thus, We we also have in place a Scheme for over 1,000 widows and the first batch of over 2,000 who have been empowered with start-up funds for their own businesses. As a matter of fact, this has continued to help in promoting our job creation, poverty alleviation, and food security strategy.

 

Environment and Physical Planning As part of our initiative to address the deficit in the housing sector, we have commenced two housing schemes in Abeokuta, mass construction of affordable housing units in Abeokuta and other locations in the State. These housing units will be sold particularly to the low and middle-income earners. At the moment, we are almost through with the development of Ogun State Masterplan and designation of the Industrial Hubs. We are providing power, leveraging on the gas pipelines that run through the State.

 

Lands and Survey The Bureau of Lands and Survey is a critical component of improved service delivery for both corporate and individual stakeholders. We are currently reviewing our programmes on land acquisition for individuals and corporate bodies, particularly the Geographic Information System (GIS) and other areas to facilitate the automation of our land administration processes. This, we have been able to put in place to accelerate our plan for the construction of affordable housing units across the State.

 

iii. Education

Let me recall that during our electioneering campaign, I promised to restructure the education sector. And, immediately after our Administration was inaugurated, I declared a state of emergency in the education sector towards repositioning the sector for better performance. We consider this our bond. And, I can confidently say that we have kept our words. This is self-evident by the stability brought to our Institutions. Ogun State is the education capital of Nigeria with the highest number of Tertiary Institutions in Nigeria. With a consciousness of our heritage in the knowledge industry, we have continued to ensure a mutually-beneficial relationship between the town and the gown by providing a platform that creates and strengthens regular interface between the industry and the academia. We will continue to ensure that the curricular equip the products of our tertiary institutions with the required competencies so that we have a ready pool of manpower required to drive our industrialization programme. For this reason, we held an Education Summit where various challenges and prospects of the Education sector were rigorously dissected.

 

Mr. Speaker, let me inform you that our Administration set up committees, particularly to look into all the seemingly intractable issues concerning Moshood Abiola University of Science and Technology (MAUSTECH), and the Moshood Abiola Polytechnic (MAPOLY). We did the same for Tai Solarin College of Education (TASCE), Omu-Ijebu, because of the urgency involved. By the grace of God, all issues have been resolved and the two issues are back to full academic activities. Only last week, I inaugurated the Governing Council for TASCE. Other tertiary institutions will also have their Governing Councils soon. We have also embarked on the rehabilitation of our Public Primary School facilities across all the 236 wards in the State.

 

Also to the Glory of God as a demonstration of the importance this Administration attaches to the role of teachers, we recently promoted over 10,000 teaching and non-teaching Staff for the year 2016 and 2017, we have also restored the payment of running cost in our schools while PTA levy, particularly the payment of N3,700 and other illegal fees have been stopped in our public schools in line with our free education policy. This Government, since inception has also offered support for School Principals to attend a conferences and outside Nigeria, for example in China. And just yesterday again another batch of School Administrators returned from an experience sharing session in the United Arab Emirate. The Government has also resolved to restore the positions of Principals-General and the introduction of Headmasters-General in our school system. These are deliberate pointers to the fact that the welfare and career progression of teachers are paramount to our Administration. This is not to forget recognition and donation of laptops and other incentives to Students in Ogun State, both in public and private schools that excelled in national competitions.

 

iv. Youth Empowerment, Culture And Religion

Our Administration will continue to deepen its zeal for the empowerment of the teeming population of youths in our dear State. Empowerment of the youths through sports, creative arts, cultural activities, tourism and entertainment will continue to provide the impetus in moulding these leaders of tomorrow for the task of nation building. The launch of the Ogun Job Portal, jobs.ogunstate.gov.ng, is part of our Administrations commitment to ensure that our graduates and those with vocational skills across the State will give their information and we will endeavour to match them with potential employers, training opportunities, not only within the Public Service but also with the Private Sector as our partners. So far, over 120,000 applicants have been able to submit their applications for jobs on the Ogun Job Portal. Of these, about 15,000 of them would have been gainfully employed by the end of the year- including the first batch of 10,000 engaged in the Anchor Borrowers scheme.

 

Furthermore, the State Government has been faithful with identifying with the youths as a way of aligning with international standards. A Committee of Bank Chief Executives (through SANEF) has approached Ogun State for land to build a Creative Arts and Entertainment and Creative Arts Village: the largest in Africa.

 

Digital Economy This is to provide an economy that is leveraging on ICT in order to make information available at the click of a button. Permit me to use this opportunity to invite investors, inventors, business owners and all our partners to visit the Ogun Tech Hub Village in Abeokuta. Visiting our Tech Hub Village will inspire you all to appreciate more the wonders of ICT for business growth. In particular, the initiative of our Tech Hubs is to provide our people with an avenue for pre-incubation and cross-fertilisation of ideas for technologists, social entrepreneurs, tech companies, impact investors, and governments in and around Ogun State to create new solutions to the many social challenges of humanity. The initiative of the Ogun Tech Hub, therefore, is to position Ogun State as a key centre for innovation in Nigeria. I must say that the initiative of the Ogun Tech Hub in Abeokuta, which will soon be replicated in other towns across the 3 Senatorial Districts of our dear State, is also a part of our Vocational Training scheme which is to provide capacity building for our artisans in order to ensure they are relevant in the New Industrial Revolution. Some of the Model Colleges built by the last Administration will be converted to vocational skills acquisition and ICT hubs to ensure more participation of our youths in the digital economy. It is worthy of note that our various initiatives in ICT have received national attention and recognition. Only last week, the Federal Ministry of Communication presented our state with the Award of Best ICT State

 

Improvement on the Business Environment This is to ensure a continued improvement in our ease of doing business rating. In this direction, we have also established supervising Agencies specifically for this purpose:

 

Ogun State Investment Promotion and Facilitation Agency which will help promote Ogun State as a preferred investment destination while offering a vide a truly one-stop-shop and removing all the red tapes and bottlenecks for investors. This will be achieved through efficient process of land administration, permits, and grants of relevant licenses with ease.for Big Investors to know about the natural and solid mineral resources of the State and its business opportunities. It will also boost the facilitation required to invest in the State and commence operations e.g. land acquisition and ownership, community relations, statutory documentation and linkages with the suppliers, especially farmers.

 

We have also established the Ogun State Enterprise Development Agency which is to strengthen the Micro, Small and Medium Enterprises (MSMEs) and boost their capacities as major producers of raw materials and off-takers of the big industries as distributors, wholesalers and retailers. The Agency will also assist in the facilitation of all available intervention funds from the Federal Government through the Central Bank of Nigeria and monitor compliance with all requirements in order to achieve its objectives. So, as these MSMEs thrive, big industries will flourish.

 

In matching up with the World Banks ranking on sub-national study on ease of doing business, our Administration has created the Business Environment Council to streamline regulatory processes associated with business registration in the State. This initiative is to reposition our dear State for the much-anticipated socio-economic boom.

 

Agriculture

Agriculture remains a mainstay of our economy, 80% of our total landmass of 16,980.55km2 (6,566.23 sq. mi) is arable. I am happy to report to you that Ogun State is a major producer of cassava in Nigeria; and one of the major producers of rice, maize and cocoa, all of which are the main raw materials for Agro-allied and beverage industries. Not forgetting that we are also major producers of kolanut, cashew, palm kernel etc. As part of our agenda in promoting agriculture, our Administration has continued to intensify efforts to partner with the African Development Bank (AfDB) for the berthing of the largest Agro-Processing Zone in Ogun State.

 

In the same vein, we inaugurated, in partnership with the Central Bank of Nigeria (CBN), the Anchor Borrowers Scheme on Agriculture., under this scheme, our teeming youth will be turned to Agric Entrepreneurs and will be provided with land, which will be cleared for them, improved seedling and other extension services. In addition, off takers (Anchors) will be sourced for their produce at agreed prices that are known to all at the time of planting thus guaranteeing price stability and adequate reward for effort. Furthermore, CBN will pay stipends to the farmers pending the harvest and sale of their produce. Over 52,000 youth have been harvested from the Job Portal out of which the first batch of 10,000 have been selected and are currently on the programme of our people will be empowered with land that the government will clear, facilitate acquisition of seedlings and seeds, and access to finance. We also have the FADAMA Graduate Unemployed Youths and Women Scheme (FADAMA GUYS) which is particularly unique because it is targeted at two main vulnerable groups of our population the youth and women. At the micro economic level, these programmes provide job opportunities in agriculture, for our youth and women thereby providing income and food for themselves and their families. On the macro-economic level, they will be another boost to Nigerias food self-sufficiency agenda. Let me note that the two schemes are a win-win affair for Government, the people and our private investors. Our private investors too are going to reap bountiful fruits as Agriculture and Agro-Allied industries will be provided a ready pool of raw materials. This is another opening for public-private-partnership between our dear State and the Private sector. As a further boost, we are establishing Agro- Processing Zones across the State.

 

1. Other achievements:

Sports

Gateway Football Club Prompt release of funds to prosecute matches and save the club from relegation. It is most amazing that a club that was battling relegation is now placed 2nd position on the log in this league season, and the promotion into the Nigerian National Premier League (NNPL) is now within the reach of the club;

 

Participation in the National Games Festival Ogun State was adequately represented at the 2019 National Games Festival and a total of 128 medals were won for our dear State both in the male and female categories.

 

Bureau of Transportation The exploitation of other means of transportation such as along our waterways will be pursued in a bid to promote cheap multi-modal transport system in the rural trading communities.

 

Special Duties Ogun State has continued to key into the Federal Government Social Investment Programmes such as Home-Grown School Feeding Programme; N-Power; Government Enterprise and Empowerment Programme (GEEP); and, Cash Transfer Programme. This has tremendously aided our programmes on job creation, poverty alleviation, and food security in the following ways:

 

• Increased enrollment of pupils in the public primary schools.
• Provision of direct employment and empowerment for over 3,090 women in the State;
• Provision of one free nutritional meal per day for primary 1 to 3 pupils;
• Increased local agricultural production through the availability of ready market; and,
• Provision of over 20,000 indirect jobs through agricultural processing of protein components.

 

2. So much for what we have done. As a new Administration, focus has now shifted to Financial Transparency, Accountability, Due Process, Efficiency and Cost Management, and this has engendered the Medium-Term Expenditure Framework (MTEF) which is a 3-year plan that will improve the allocation of resources to strategic areas. Under our 2020 2022 Framework, our State will be repositioned to achieve a World class Public Financial Management system that is built on international best practices. The MTEF provides the basis for annual budget planning. As a macroeconomic framework it indicates fiscal targets and estimates revenues and expenditures, including government financial obligations in the medium term and as a tool to manage the pressure between competing policy priorities and budget realities. In the long run, it will help us to reprioritize expenditure and make informed policy choices that are affordable.

 

The fiscal projections over the 3 year period are as follows:

• The States GDP is projected to grow at an average of 2.4%
• The estimated GDP figures for the State over the 3 year period are: N2.99trn, N3.06trn and N3.14trn respectively; and
• Inflation is also projected at 10.2%, 8.49% and 6.59% in 2020, 2021 and 2022 respectively
• In developing this MTEF, we set the following targets and key performance indicators for the State;
• Capital expenditure ratio of 60%, 65% and 70% respectively;
• Fiscal Deficit as a percentage of GDP of 3%,1% and 2% respectively;
• Total Personnel Cost as a percentage of IGR of 43%, 28% and 24% respectively;
• Recurrent Expenditure as a percentage of IGR of 71%, 43% and 37% respectively.

 

1. Review Of Budget Performance In 2019

Mr. Speaker, let me, for a few moments give a review of the budget performance in the out-going year. The 2019 budget was tagged Budget of Enduring Legacy, by the immediate past Administration, with a total budget size of N400.323 Billion. The Recurrent Expenditure was N149.67 Billion, representing 37% of the Budget; whilst Capital expenditure stood at N250.65 Billion, representing 63% of the total Budget size. This Budget was to be funded with N159.24 Billion expected from the Internally Generated Revenue and N60 Billion from the Federation Account. The Capital Receipts were expected to be N101.08 Billion. The Government also expected N80 Billion from Road Refund from the Federal Government. As at 31st October, 2019, the overall Budget Proportionate Performance was 36%. With this in view, we have scaled up expectations and thought through how government will perform better in the coming year.

 

2. Policy Thrusts For Our Year 2020 Estimates

Ogun State is an emerging mega economy, which enjoys very close proximity to Lagos, the fifth largest economy in Africa. We are turning our push factors to pull factors, to attract Development Partners support, funding from foreign and local investors; and financial institutions, to achieve our goals, build our strategic pillars, and accomplish desirable outcomes. Therefore, the action plan for the 2020 budget will continue with the tradition of exploring means of observing prudent financial management system, and thereby reducing cost of administration and plug waste. Basically, we will do more to further localise the Sustainable Development Goals (SDGs) to continue to create individual prosperity for the people of Ogun State. The policy thrusts for the 2020 financial year will be geared towards achieving the Sustainable Development Goals.

To achieve these, we are building on the identified Pillars, particularly through the Public-Private Partnership initiatives.

 

3. Year 2020 Proposals

Mr. Speaker, Permit me to turn our attention to the coming year and the implications of these proposals upon the trajectory of development in the State.

 

4. The 2020 Proposals have been aptly titled Budget to Build Our Future Together, to reflect our determination to deliver on our electoral promises to the optimal level. We therefore propose an estimated expenditure of N449.974 Billion.

 

The components of the Budget are summarized as follows:

• Expenditure on Salaries and Allowances: Eighty Three Point Two Three Eight Billion Naira which is Eighteen Percent of total.
• Pension and Gratuities: Twenty Five Point Nine Four Five Billion Naira which is Six Percent of total.
• The total Personnel Cost is One Hundred and Nine Point One Eight Three Billion Naira which is Twenty Four Percent of total.
• The Over Head Cost is Seventy One Point Six Five Nine Billion Naira which is Sixteen Percent of total.
• Total Recurrent Expenditure is One Eight Zero Point Eight Four Two Billion Naira which is Thirty Nine Point Six Nine Percent of total.
• Capital Expenditure is Two Six Nine Point One Three Two Billion Naira which is Sixty Point Three One Percent of total.

 

1. The proposed Four Hundred and Forty Nine Point Nine Seven Four Billion Naira Budget is to be funded as follows:

 

• Proposed IGR is Two Hundred and Fifty Four Point Nine Four Six Billion Naira which is Fifty Seven Percent of total.
• Statutory Allocation is expected to be Forty Three Point Four Three One Billion Naira which is Ten Percent of total.
• Expected revenue from VAT is Twenty Two Point Zero Three One Billion Naira which is Five Percent of total.
• Capital and other receipts are One Hundred and Twenty Nine Point Five Six Six Billion Naira which is Twenty Eight Percent of total.

 

2. Analysis Of The Proposed Expenditure

Our Proposed Expenditure consists of Capital Expenditure of N269.132 Billion i.e. 60.31% and Recurrent Expenditure of N180.842 Billion i.e. 39.69%. Salaries and Allowances stand at N83.238 Billion, while Pension and Gratuities account for N25.945 Billion, which is 18% of total Expenditure and Pensions & Gratuities are 6% of total Expenditure. The balance of N71.659 Billion which accounts for 16% is set aside for the Overhead Costs.

 

3. To our Five Strategic Pillars, essentially coined I.S.E.Y.A, we propose as follows:

• Infrastructure is One Hundred and Seven Point Nine Six Four Billion Naira which is Twenty Four Percent of total.
• Social Well-being and Welfare is One Hundred and Twenty Eight Point Zero Six Seven Billion Naira which is Twenty Eight Percent of total.
• Education is Ninety One Point Six Zero Nine Billion Naira which is Twenty Percent of total.
• Youth Empowerment is Seven Point Eight Nine Six Billion Naira which is Two Percent of total.
• Agriculture is Twenty One Point Six Three Four Billion Naira which is Five Percent of total.
• Others are Ninety Two Point Eight Zero Four Billion Naira which is Twenty One Percent of total.

 

4. Any Difference?

It is almost a routine that Proposals are made but rarely fully implemented. What we have brought on board is I stated above, the medium-term fiscal strategy of our Administration between 2020 2022 will continue to be hinged on five strategic Pillars that are essentially I.S.E.Y.A out of which the bases (Enablers) of our programmes and projects shall continue to be built on:

 

I.S.E.Y.A

I Infrastructure

Providing welfare and rReversing the infrastructural deficits across all the 236 wards in the State.

 

S Social Welfare Protection And Well Being

Reforming the machinery of government for good governance and peoples well-being by focusing on the following;

Healthcare, Housing, Environment and Physical Planning, Water and Waste Management. Reforming the machinery of government for good governance and peoples well-being;

 

E Education

Increase literacy levels to global standards and improve funding to the education sector;

 

Y Youth Empowerment, Culture And Religion

Providing employment and empowerment for our teeming youths; and,

 

A Agriculture

To guarantee food security, self-sufficiency and sustainability as well as the adoption of Value - Chain approach to Agriculture through small scale holder farmers. Expanding our dear States economy by taking the advantage of the potentials of the agriculture sector within the context of Public-Private-Partnership agenda.

 

To walk our talk . We have emplaced a mechanism for a5. Mr. Speaker, as an extension of my pledge to lead the people of Ogun State with integrity and sincerity, and that our Administration will be fair, just, equitable and inclusive, iIt is part of our commitment to put in place a workable Public Financial Management System that eliminates leakages and ensures efficient and judicious use of our common wealth. Some of the action plans in this regard are:

• Full automation of the State Finance functions;
• Strict adherence to the proposed Fiscal Responsibility Law ;Law;
• Instituting Credit Rating for Ogun State by internationally accepted rating agencies;
• Strengthening the internal audit functions; and,
• Timely publication of audited accounts.

 

5. Public Financial Management System

 

6. As a new Administration, focus has been we concentrated on Financial Transparency, Accountability, Due Process, Efficiency and Cost Management, and this has engendered based on the Medium Term Expenditure Framework (MTEF) which is a 3-year budget plan that will improve the allocation of resources to strategic areas. As a matter of fact, we are currently reviewing the State Debt Management Strategy. We equally gave issued ave an Executive Order for the establishment of the Fiscal Responsibility Commission for prudent financial management of the States resources; efficient allocation of public funds expenditure; and, long-term economic stability of the State. This is in addition to the Public-Private Partnership Law which has just been passed into law by the Ogun State Honourable House of Assembly, . In addition, we have carried out a Staff Biometrics and payroll Audit; Implementation of Treasury Management Solution for single view and efficiency in treasury and payment processing; as well as financial sustainability assessment. All these steps, apart from preventing leakages, have also helped to achieve and ensure prudent financial management, help to attract financial support from financial institutions, multilateral agencies and development partners, and have, in fact, started to manifest positively in successful implementation of the "Building our Future Together Agenda in the last six months of our Administration". We shall not waiver.

 

7. Mr. Speaker, the Honourable Members of the 9th Assembly House, distinguished ladies and gentlemen, we cannot deny the fact that, as our Administration is committed to creating a better, enduring and prosperous Ogun State, we must also appreciate the fact that it comes at with a cost. This will help to take into focus the financial implications of our common cause. That is, we must think of how much we need; how we raise such funds; how such funds will be judiciously expended; and, how well such funds will be accounted for. The bulk of this falls within the purview of the Public Service. And, as we all know, the Public Service is the engine room of any successful government. For instance, we have to come up with a Medium Term Expenditure Framework which will cover 3 years. It is the success of this that will bring forth a long-term expenditure framework. This government. This, we have commenced ill start with the preparation of our 2020 Advance Proposals and we have to begin to think outside the box to ensure that we generate adequate funds to finance our development projects.

 

8. One important aspect of fund generation is our Public-Private Partnership approach. But, it is also crucial, if we want to engender successful positive Public-Private Partnerships that will build a culture of good governance which includes but not limited to transparent Public Financial Management. This will assure our partners of our commitment towards engendering a successful Public-Private Partnerships. Therefore, we have to improve on our processes and procedures so as to match up with the pace of our partners. We have to show that the partnership will be mutually beneficial. Above all, we have to show that we are truly a worthy partner. And, I am very sure that the Ogun State Public Service is capable of this.

 

9. Mr. Speaker, permit me to note that our Administration is irrevocably committed to making Ogun State a truly Investors First Choice Destination not only in Nigeria, but in Sub-Saharan Africa. In doing this, we will continue to take maximum advantage of our geographical location, as the gateway to Nigeria; our proximity to Lagos, the fifth largest economy in Africa; and, the window into the West African corridor. We appreciate the fact that Ogun State has experienced some influx of companies which is largely by a push-factor rather than structured, deliberate and concerted pull-factors from Ogun State. On the pull side, therefore, we have formulated some policies and programmes which have started to manifest positively. Our aim, in this regard is to continue to create an enabling environment that will ensure that existing investments thrive and new investments are attracted.

 

10. As part of our commitment towards creating job creation, poverty alleviation and food security, we will continue to demonstrate our commitment in the development of our partnership strategy, particularly with our people, in infrastructure, social welfare, education, youth empowerment, agriculture, and other sectors that have direct and positive impacts on our people and the our dear States economy of our State.

 

Review Of Budget Performance In 2019

1. Mr. Speaker, let me in some few moments give a review of the budget performance in the 2019 out-going year. The 2019 budget was tagged Budget of Enduring Legacy, by the immediate past Administration, with a total budget size of N400.323 Billion. The Recurrent Expenditure was N149.67 Billion, representing 37.39% of the Budget; whilst Capital expenditure stood at N250.65 Billion, representing 632.61% of the total Budget size. This Budget was to be funded with N159.24 Billion expected from the Internally Generated Revenue and N60 Billion from the Federation Account. The Capital Receipts were expected to be N101.08 Billion. The Government We also expected N80 Billion from Road Refund from the Federal Government. As at 31st October, 2019, the overall Budget Proportionate Performance was 36.26%.

 

Major Achievements Key Mile Stones

Infrastructure 

1. Infrastructure is key to development. We have been able to demonstrate our commitment in the continued socio-economic development of our dear State, particularly in education, Health, infrastructure and other key sectors that have direct and positive impacts on our people. You will all recall that we requested that our people select the primary schools, primary health-centres, and the roads they feel should attract immediate attention in each of the 236 wards across our dear State. These primary schools, health-centres and roads have received immediate intervention. This is in addition to governments identified projects that will be spread across the three Senatorial Districts of our dear State.

 

2. In this direction, we have started the rehabilitation of rural and township roads across the 3 Senatorial Districts of our dear State. This necessitated the establishment of the Ogun State Public Works Agency (OGPWA) which has proven to be a dynamic, progressive and cost-effective strategy of rehabilitating existing roads. This palliative measure became necessary because of the bad condition of many of our roads. I can assure you that many officials and officers of the OGPWA team are at present in different parts of our dear State working round the clock. At present, road rehabilitation works are on-going across the State, and particularly in:

 

Ado-Odo/Ota Corridor of Ogun West:

Sango-Ota-Lagos Road;

Osi-Ota-Awolowo-Navy-AIT Road.

Ogun East Axis:

Itokin-Ibefun-Ijebu-Ode Road;

Sagamu-Ijebu-Ode-Sapade Road;

Asafa-Oke-Degun Road;

Iperu-Ilisan Road;

Siun-Ogere-Iperu road;

Balogun Kuku Road in Ijebu-Ode;

Oba Erinwole Road, Sagamu.

Abeokuta Corridor of Ogun Central

Adigbe-Opako road;

Abeokuta-Sango-Ota-Lagos road.

 

The establishment of OGPWA is part of our commitment to accelerate massive road rehabilitation towards enhancing job creation, poverty alleviation and food security for the individual prosperity of our people, including the commuters, and open up the locked areas to ease movement of goods and materials; thereby ensuring the continued growth of our dear States economy. I must inform you that we have also identified areas where we need to direct our immediate attention. For example, our industrial hubs- Agbara-Atan-Ota Axis; Ewekoro-Ifo Axis; Sagamu-Ogijo Axis; Sagamu-interchange-Kobape Abeokuta Expressway Axis; Ilaro- Ibese Axis; etc. In fact, the contracts for the 13.4 km Epe-Ijebu Ode Road and others would soon be perfected while we are currently perfecting the paper work with the Lagos State Government for a Joint Development Commission oin road infrastructure towards fast tracking the construction of Sagamu-Ikorodu Road; Lagos-Ota-Abeokuta Road and other roads linking our neighbouring States. This is not to forget our rural roads to boost agriculture and development of Micro, Small and Medium Enterprises (MSMEs).

 

Social Welfare Protection And Well Being

1. Security In the area of security, we have continued to complement the efforts of the Federal Government by supporting all the security agencies in our dear State. It is our belief that it is only when security is assured that individuals can venture out in search of their livelihood and to meet other basic needs such as food, clothing, shelter and self-actualization. And, for a society that desires more private investment, there is the need to assure investors of safety of their lives and investments. It is on this significant premise that we reinvigorated set up the Ogun State Security Trust Fund which is private sector driven to provide the needed finances. Although, we are aware that security agencies are on the Exclusive List of the 1999 Constitution of the Federal Republic of Nigeria. But, we have resolved to continue to support these security agencies because the lives and property for which they provide security are that of the people of our dear State. We have provided over 100 patrol vans, 200 motorcycles and other security gadgets to strengthen the security apparatus in our dear State, just to provide conducive atmosphere to help nurture the individual potentials of our people and promote the growth of businesses.

 

2. Health To address infrastructural and staff deficits in the health institutions, our Administration has carried out the rehabilitation of the primary health centres in each of the 236 wards of our dear State. We have also approved the immediate recruitment of medical doctors, nurses, pharmacists and other medical personnel for the Olabisi Onabanjo University Teaching Hospital (OOUTH), Sagamu and our other medical facilities. We have renovated the State Hospital, Ilaro and Medical Outreach at Ilisan-Remo. We have equally embarked on procurement of medical equipment in the State hospitals across our dear State. These includes; anaesthesia machine, oxygen concentrator, and delivery beds as well as construction of standard dialysis units, etc. We have also started the review of the State Health Insurance Scheme by instilling health insurance culture on the people of Ogun State, to facilitate prompt payment of medical bills in our hospitals. In addition to free medical outreach established, inclusion of nutritional care in all the State-owned hospitals and health facilities across the State, as a means of providing a systematic and comprehensive foundation for healthcare delivery, has continued to extend our free medical system to our people. More so, we have extended preventive health care to about 2,219 inhabitants across the 3 Senatorial Districts. Our mission, in this regard, is to ensure healthy living of our people.

 

3. We have also launched Okowo Dapo, a micro credit scheme that provides a window for people to access financial resources. It empowers our people to expand their micro and small businesses. This informed our decision in organizing MSMEs Clinic to provide mechanism for face to face interaction between the entrepreneurs and Business Development Organisations (BDOs) and financial institutions such as SMEDAEN, GIZ, BOI, and National Association of Micro-Finance Banks (NAMB) towards gathering data on the activities of the entrepreneurs across our dear State. Not forgetting that over 1,000 widows have been empowered with start-off funds to start their own businesses. As a matter of fact, this has continued to help in promoting our job creation, poverty alleviation, and, food security strategy.

 

4. Let me use this opportunity to enjoin the beneficiaries of this social programme not to see this as their own share of the national cake. The loan must be utilized for the purpose it is meant. In actual fact, it is a loan that is capable of setting the beneficiaries free from the shackles of aimlessness and poverty. It will improve productivity, and increase income level and self-engagement.

 

5. Environment and Physical Planning As part of our initiative to address the deficit in the housing sector, we have commenced mass construction of affordable housing units in Abeokuta and other locations in the State. I believe that shelter as a basic human need should be affordable. These housing units will be sold particularly to the general populace, including artisans. Additionally, we are almost through with the development of Ogun State Masterplan and designation of the Industrial Hubs across Ogun State with provision of power, leveraging on the gas pipeline that runs through the State.;

 

6. Lands and Survey The Bureau of Lands and Survey is a critical component of improved service delivery for both corporate and individual stakeholders. We are currently reviewing our programmes on land acquisition for individuals and corporate bodies, particularly the Geographic Information System (GIS) and other areas to facilitate the automation of our land administration processes. This we have been able to put in place to facilitate plan of construction of affordable housing units across the State.

 

Education

7. Ogun State is the education capital of Nigeria with the highest number of Tertiary Institutions in Nigeria (3 Government owned and 7 Private). We will continue to ensure a mutually-beneficial relationship between the town and the gown by providing a platform that creates and strengthens regular interface between the industry and the academia to ensure that the curricular equip the products of our tertiary institutions with the required competencies so that we have a ready pool of manpower required to drive our industrialization programme. For this reason, we held an Education Summit where various challenges and prospects of the Education sector were vigorously discussed.

 

8. Even before that, let me recall that during our electioneering campaign, I promised to restructure the education sector. And, immediately after our Administration was inaugurated, I declared a state of emergency in the education sector of our dear State towards repositioning the sector for a better performance. We consider this our bond. And, I can confidently say that we have kept our words. This is self-evident by the stability brought to our Institutions.
9. Mr. Speaker, let me inform you that our Administration set up committees, particularly, to look into all the seemingly intractable issues concerning Moshood Abiola University of Science and Technology (MAUSTECH), and the Moshood Abiola Polytechnic (MAPOLY). We did the same for Tai Solarin College of Education (TASCE), Omu-Ijebu, because of the urgency involved. By Through the grace of God, all issues have been resolved and the college is running and, by December, will have her first ever joint Convocation ceremony. We have also embarked on the rehabilitation of our Public Primary School facilities across all the 236 wards in the State. As we promised, payment of running cost to both Headteachers and Principals of our Schools as well as subventions of tertiary Institutions are being effected.
   

 

10. Apart from the recent promotion of over 10,000 teaching and non-teaching Staff for the year 2016 and 2017 promotion exercise, . Wwe have also restored the payment of running cost in our schools while PTA levy, particularly the payment of N3,700 and other illegal fees have been stopped in our public schools in , line with our free education policy. This Government since inception has also offered support for School Principals to attend a conference in China. The Government is also considering the restoration of the position of Principal Tutors-General and the introduction of Headmasters-General in our school system. This is a pointer to the fact that the welfare and career progression of teachers are very paramount to our Administration. This is not to forget recognition and donation of laptops and other incentives to Students in Ogun State, both in public and private schools, that excelled in national competitions.

 

Youth Empowerment, Culture And Religion

1. Our Administration will continue to deepen its zeal for the empowerment of the teeming population of youths in our dear State. Empowerment of the youths through sports, creative arts, cultural activities, tourism and entertainment will continue to provide the impetus in moulding these leaders of tomorrow for the tasks of nation building. The launch of the Ogun Job Portal, jobs.ogunstate.gov.ng, is part of our Administrations commitment to ensure that our graduates and those with vocational skills across the State will give their information and we will endeavour to match them with potential employers, training opportunities, not only within the Public Service but also with the Private Sector, as our partners. So far, over 120,000 applicants have been able to submit their applications for jobs on the Ogun Job Portal.

 

2. Furthermore, the State Government has been faithful with identifying with the youths as a way of aligning with international standards. In this regard, Ogun State was well represented at the 2019 International Youth Day, organised by the Junior Chamber International (JCI), held in Lagos recently. And, as a further boost, a Committee of Bank CEOs has approached Ogun State for land to build an Entertainment and Creative Arts Village, the largest in Africa.

 

 

3. Digital Economy This is to provide an economy that is leveraging on ICT that will make information available at the click of a button. And, as a further boost, a Committee of Bank CEOs has approached Ogun State for land to build Entertainment and Creative Arts Village, the largest in Africa. Permit me to use this opportunity to invite investors, inventors, business owners and all our partners to visit the Ogun Tech Hub Village in Abeokuta. I can assure that visiting our Tech Hub Village will inspire you all to appreciate more the wonders of ICT for business growth. In particular, the initiative of our Tech Hubs is to provide our people with an avenue for pre-incubation and cross-fertilisation of ideas for technologists, social entrepreneurs, tech companies, impact investors, even ethical hackers and governments in and around Ogun State to create new solutions to the many social challenges of humanity. The initiative of the Ogun Tech Hub, therefore, is to position Ogun State as a key centre for innovation in Nigeria. I must say that the initiative of the Ogun Tech Hub in Abeokuta, which will soon be replicated in other towns across the 3 Senatorial Districts of our dear State, is also a part of our Vocational Training scheme which is to provide capacity building for our artisans so that they would be relevant in the New Industrial Revolution. I must say that Some of all the Model Colleges built by the last Administration will be converted to vocational skills acquisition and ICT hubs to ensure more participation of our youths in the digital economy.

 

4. Improvement on the Business Environment This is to ensure a continued improvement on our ease of doing business. In this direction, we have also established supervising Agencies specifically for this purpose:

Ogun State Investment Promotion and Facilitation Agency which will provide a truly one-stop-shop for Big Investors to know about the natural and solid minerals resources of the State and the business opportunities. It will also boost the facilitation required to invest in the State and commence operations e.g land acquisition and ownership, community relations, statutory documentation, and linkages with the suppliers, especially farmers.

We have also established the Ogun State Enterprise Development Agency which is to strengthen the Micro, Small and Medium Enterprises (MSMEs) and boost their capacities as major producers of raw materials and off-takers of the big industries as distributors, wholesalers and retailers. The Agency will also assist in the facilitation of all available intervention funds from the Federal Government through the Central Bank of Nigeria and monitor compliance with all requirements in order to achieve its objectives. So, as these MSMEs thrive, big industries will flourish.

 

5. In matching up with the World Banks ranking on sub-national study on ease of doing business, our Administration has created the Business Environment Council to streamline regulatory processes associated with business registration in the State. This initiative is to reposition our dear State for the much-anticipated socio-economic boom. In the last few months, effort have been intensified to position the States Investment Promotion and Facilitation Agency (IPA) to enhance the one-stop-shop strategy which has continued to help to provide more environment for businesses and attract more investors into our dear State.

 

Agriculture

1. Agriculture remains a mainstay of our economy, 80% of our total landmass of 16,980.55km2 (6,566.23 sqsq. mi) is arable. I am happy to report to you that Ogun State is a major the largest producer of cassava in Nigeria; and one of the major producers of rice, maize and cocoa, all of which are the main raw materials for Agro-allied and beverage industries. This is not to forget that we are also a major producer of cocoa, kolanut, cashew, palm kernel etc. As part of our agenda in promoting agriculture, our Administration has continued to intensify efforts to partner with the African Development Bank (AfDB) for the berthing of the largest Agro-Processing Zone in Ogun State.

 

2. In the same vein, we inaugurated, in partnership with the Central Bank of Nigeria (CBN), the Anchor Borrowers Scheme on Agriculture, under which 10,000 of our people will be empowered with land that the government will clear, facilitate acquisition of seedlings and seeds, and access to finance. We also have the FADAMA Graduate Unemployed Youths and Women Scheme (FADAMA GUYS) which is particularly unique because it is targeted at two main vulnerable groups of our population the youths and women. At the micro economic level, these programmes provide job opportunities in agriculture, for our youth and women thereby providing income and food for themselves and their families. On the macro-economic level, they will be another boost to Nigeria's food self-sufficiency agenda. Let me note that the two schemes are a win-win affair for Government, the people and our private investors. Our private investors too are going to reap bountiful fruits as Agriculture and Agro-Allied industries will be provided a ready pool of raw materials. This is another opening for public-private-partnership between our dear State and the Private sector. As a further boost, we are establishing Agro-Processing Zones across the State.

 

Other Achievements:

1. Sports

Sports Council there is athe blueprints to positionmake sports as an exceptional opportunity for youth empowerment and continued socio-economic development of our dear State; Gateway Football Club Prompt release of funds to prosecute matches and savfe the club from relegation. It was most surprising that a club that was battling relegation is now placed 2nd position on the log in this league season, and the promotion into the Nigerian National Premier League (NNPL) is now within the reach of the club;

Participation in the National Games Festivals Ogun State was adequately represented at the 2019 National Games Festival and a total of 128. number of medals were won for our dear State both in the male and female categories.

 

2. Bureau of Transportation To further ensure our commitment towards transforming the transportation sector for efficient and progressive, action is in top gear for the deployment of intra-city Bus Mass Transit Scheme in the State capital. The Inter-city Scheme will soon commence to ease commuting of persons and materials across the 3 Senatorial Districts. Also, the exploitation of other means of transportation such as along our waterways will be pursued in a bid to promote cheap multi-modal transport system in the rural trading communities.

 

3. Special Duties Ogun State has continued to key into the Federal Government Social Investment Programmes such as Home-Grown School Feeding Programme; N-Power; Government Enterprise and Empowerment Programme (GEEP); and, Cash Transfer Programme. This has tremendously aided our programmes on job creation, poverty alleviation, and food security in the following ways:

 

• Increased enrolment of pupils in the public primary schools.
• Provision of direct employment and empowerment for over 3,090 women in the State;
• Provision of one free nutritional meal per day for primary 1 to 3 pupils;
• Increased local agricultural production through the availability of ready market; and,
• Provision of over 20,000 indirect jobs through agricultural processing of protein components.
• And, we are also anticipating the construction/rehabilitation of civil structures, roads and hydraulic structures in our border towns, once assessment is conducted and identified.

 

2020 Budget Outlook

Mr. Speaker, having spent some time discussing the course this Administration has charted since taking office, permit me to turn our attentions to the coming year and the implications of this expenditure upon the trajectory of development in the State.

 

2020 Budget Size

Mr. Speaker, Honourable Members, the 2020 Budget has been appropriately titled Budget to "Build Our Future Together", to reflect our determination to deliver on our electoral promises to the optimal level. We therefore propose a Budget size of N449.974 Billion.

The components of the Budget are summarized as follows:

Expenditure Items

Amount (bn)

% of Total

 

Salaries & Allowances

83.238

18.50

 

Pension & Gratuities

25.945

65.77

 

Total Personnel Cost

109.183

24.26

 

Overhead Cost

71.659

165.93

 

Total Recurrent Expenditure

180.842

40.19

 

Capital Expenditure

269.132

6059.81

 

Total Budget

449.974

100.00

 

Financing The Budget

The proposed N 449.974 Budget is to be funded as follows:

Source

Amount (bn)

Percentage

IGR

254.946

576.65

 

Statutory Allocation

43.431

109.65

 

VAT

22.031

54.90

 

Total Revenues

320.408

721.20

 

Capital Receipts

89.706

19.9420

 

Other Receipts

39.860

8.868

 

Total Funding

449.974

100.00

 

1. Analysis Of The Proposed Expenditure

Our Expenditure consists of Capital Expenditure of N269.132 Billion i.e. or 60% and Recurrent Expenditure of N180.842 Billion i.e. 40%. Salaries and Allowances stand at N83.238 Billion, while Pension and Gratuities account for N25.945 Billion, which is 189% of total Expenditure and Pensions & Gratuities are 6% of total Expenditure. The balance of N71.659 Billion which accounts for 16% is set aside for the Overhead Costs.

 

2. The proposed Budget is to be allocated among the Five Strategic Pillars, essentially coined I.S.E.Y.A asI.S.E.Y. A as follows:

 

Programme

Proposed 2020 Budget2020 Budget NGN bn

% Share of Total Budget

 

Infrastucture

107.964

243.99

 

Social Welfare & Wellbeing

128.067

28.46

 

Education

91.609

20.36

 

Youth Empowerment, Culture & Religion

7.896

21.75

 

Agriculture

21.634

4.825

 

Subtotal

357.17

79.38

 

Others

92.804

210.62

 

Total

449.974

100.00

 

Policy Thrust For 2020 Budget

1. Ogun State, being an emerging mega economy, happens to enjoy a very close proximity with Lagos, the fifth largest economy in Africa. We are going to strive to attract development partner or funding, from foreign and local investors, and financial institutions, to achieve our goals, strategic pillars, and desirable outcomes in the new year. Therefore, the action plan for the 2020 budget will continue with the tradition of exploring means of observing prudent financial management system, and thereby reducing cost of administration and plug waste. Basically, our focus is to continue to improve on all sectors of our dear States economy. This, we will do to further localise the Sustainable Development Goals (SDGs) to continue to create individual prosperity for the people of Ogun State. In this wise, the policy thrust for the 2020 financial year will be towards achieving the following goals:

No Poverty;

Zero Hunger;

Good Health and Well Being;

Quality Education;

Gender Equality;

Clean Water and Sanitation;

Affordable and Clean Energy;

Decent Work Economic Growth;

Industry, Innovation and Infrastructure;

Reduced Inequality;

Sustainable Cities and Communities;

Responsible Consumption and Production;

Climate Action;

Life Below Water;

Life on Land;

Peace and Justice strong Institution; and,

Partnership to Achieve the Goal

In achieving these, we will build on the identified Pillars, particularly through the Public-Private Partnership initiative to continue to provide conducive environment for business growth and attract more investors.

 

Infrastructure

2. As infrastructure will continue to be an important Pillar in discharging good governance to the people, our Administration will, in the coming year, intensify efforts towards road construction and rehabilitation across the State. In this area, the Ogun State Public Works Agency and others will be better equipped both in the area of staffing and materials for effectiveness and efficiency. There will be more partnership with the Private sector for the development of our Industrial Hubs across the State.

 

3. Housing/Environment In the year 2020 financial year, our Administration would embark on massive housing programmes so as to further guarantee our Administrations Infrastructural developmental strategy toward job creation and poverty alleviation. New Low-Cost Housing Schemes will cover the following areas; . Agbara, Otun Quarters at Ota, Ifo, Ijebu-Igbo Atan/Ilese area of Ijebu North East, Ikenne, Imeko-Afon, Ipokia, Abigi, Sagamu, Ilaro, Owode-Yewa, Ayetoro and among others. There is also a plan to increase the number of hostel facilities in our Higher Institutions in Ago-Iwoye, Abeokuta, Ayetoro, Ibogun, Igbesa, Ijagun, Ijebu-Igbo, Itori, and Saapade.

 

4. A Consultancy Unit is also to be empowered in the coming year to prepare survey and building plans for rural dwellers at subsidized rates so as to bring organized physical planning and good environmental culture to the grassroots. The state will, through Public-Private Partnership, encourage the establishment of more Central Industrial Effluent Treatment Plant in all the Industrial Hubs. In a related development, we would carry out Integrated Environmental Base - line studies in the areas where there is high prospects of crude oil and bitumen exploration like Ogun Water side and Tongeji Island in Ipokia. This becomes necessary so as to prevent environmental crisis in the oil rich areas. The same measure would be taken to address issues of environmental and man-made disasters along the concept of sustainable development of our environment and communities. This is line with the goals of the SDGs.

 

Education

1. In the year 2020, the State Government, having taken due cognizance of the inputs of the stakeholders, including our partners, during the Education Summit and other Sessions on the 2020 Budget, has made a provision of N…91.609… billion for running cost and various capital projects in the Education sector. This includes furniture, educational materials, science and technology equipment, rehabilitation/construction of classrooms and provision of infrastructural facilities for our educational institutions. Our higher institution of learning will be adequately positioned to continue to provide the required training to our youth. And to further harness the vocational skills of our people, the establishment of the Ogun Tech Hub in the 3 Senatorial Districts of our dear State will be adequately facilitated.

 

Health

In 2020, our Administration will enhance health care delivery in the State through rehabilitating, equipping and providing adequate staffing for the general hospitals and the Olabisi Onabanjo University Teaching Hospital (OOUTH) so as to continue to serve as effective referral centres for the lower tier healthcare delivery centres. A total sum of N44.719.. billion has been set aside as the Estimates for the Health sub-sector.

 

Agriculture

1. The Agriculture Sector will continue to receive adequate priority in pursuance of the set objectives. Agriculture will continue to serve as a Pillar for job creation, poverty alleviation and food security, particularly for our youth while harnessing all opportunities and potentials of agriculture, with emphasis on the much value-adding stages of processing and storage for massive production. In this wise, all relevant Agencies will intensify the production of improved seeds, seedlings and cuttings of both cash and arable crops, improved livestock breeds and fish fingerlings for distribution to farmers and farmers groups to improve earnings and boost food security.

 

2. In order to further generate employment, more Farm Estates would be established to complement the existing ones for more participation and engagement of our youths in the agriculture the sector. The Ogun State Agro - Services Corporation will be further be supported to help improve mechanized farming and required agro-inputs delivery. In this wise, an order has been placed for a number of tractors and other equipment to be supplied at the wake of the new year. Apart from ensuring the continued positive impact of the Anchor Borrowers Scheme on Agriculture, FADAMA GUYS, and other Federal Government assisted programme, our Administration will continue to provide credit facilities at very low interest rates to assist existing and new farmers. As a matter of fact, we would consolidate on the achievement in the area of new plantation and cultivate about hectares of land. In tandem to this, about .. million seedlings will be raised for planting in all the nine (9) Government Reserves and private estates in the State. In consequence, A total provision of N…22.791.. billion has been allocated to the Agriculture sector in the budget.

 

Water Supply

3. In Year 2020, funds have been set aside for pipeline extensions in more areas and the rehabilitation of the older schemes in order to make them more productive. We shall ensure that more people have access to potable water. My plea to the people of the State is that the time issue of inadequate water supply in the State is currently being addressed, as there would be improvement inof the supply of potable water in the coming year. I urge our people to make the best use of this facility and ensure prompt payment of their water rates and charges to complement the efforts of the State Government. It is my belief that, by year 2020, the laudable programme of our Administration on Rural water and Sanitation, would reach all corners of the State, and, at least, over 70% of the Rural populace is expected to have access to potable water supply and healthy clean environment. A provision of N9.823. bmillion is earmarked for the execution of the various water and sanitation projects in the year 2020.

 

Electrification

 

1. In the continuation of our efforts to ensure provision of electricity supply to the nooks and crannies of the state, in year 2020, a provision of N4.711... billion has been made for street lights projects, and rural electrification projects including provisions of relief substations at our urban centres.

 

2. Rural Electrification Since it is the burning desire of our Administration to raise the standard of living of the people in all communities and at the grassroots, we intend to provide the following:

• 60 relieving substations with High Tension extension at the rate of 20 relieving substations per Senatorial District;
• 30 rural electrification projects at 10 per Senatorial Districts;
• Procurement of 100 Transformers for distribution to the needy communities across the State.
• About million is the provision made in the 2020 budget to embark on the above and other projects, just to make life more living for our people.

 

Employment Generation And Youth Empowerment

 

1. In the year 2020, our Administration will continue with skill acquisition training and other development programmes that could enhance local entrepreneurship and job opportunities in the State. To this end, 20,000 beneficiaries are expected to be trained. Emphasis will be placed on improving the infrastructural facilities and provision of training tools. With the aim of creating more avenues towards engaging our youth in entrepreneurship and skill acquisition, the our Administration, will establish more Tech Hubs and vocational training centres across the 3 Senatorial Districts to ensure that the trainees are versed in every aspect of their training and as well as enhance job creation capacity and capability. On this, we will encourage more and better collaboration with other relevant Government relevant Agencies, both at the Federal and State Levels. We will particularly increase our investment to better equip our agencies in their capacity as a window to improve on our partnership with the Federal Government, other State Governments, and the Private Sector with a view to improving on our job creation strategy.

 

Social Welfare And Community Development

 

1. In the New Year concerted efforts will be made in the area of community development. All the community associations and unions in Ogun State will be supported in order to carry out more self-help projects. We are doing this in recognition of the immense contributions of the community associations and unions towards increasing the standard of living particularly at the grassroots. Because of this, we tend to make create more funds to support our people to finance their small and medium scaled businesses. The Okowo Dapo and other business Schemes will be broadened and extended to accommodate more people at the grassroots to finance their businesses. We shall upgrade the Social Development Institute (Shasha), as well as collaborate withing International donor, agencies and development partners to encourage funding, and the completion of computerization of data on community development associations in Ogun State. In order to give the Social Development Institute the desired policy direction and impetus, the leadership of the institution will be strengthened and the facilities at the institution will be upgraded while additional teaching personnel will be recruited.

 

2. In the same vein, the States policies on the provision of homes for the elderly and orphans/vulnerable children throughout the State will be reviewed. In this aspect, more avenues will be created to accommodate and encourage the people living with disability in the employment scheme. The orphanage homes and facilities across the state will be better funded for effectiveness.

 

Sports

 

1. There is no doubt that sports has become a major tool in national and international affairs. In this regards, our Administration, in the new year, will embark on the development of sports, particularly, at the grassroots. Towards achieving this objective, attention will be focused on the school sports programmes. This will involve encouraging participation in sports from the Primary to the University level. Various competitions will be organized at the local level, while efforts will be made to involve not only students but also Artisans.

 

2. In order to ensure that Ogun State continues to participate, and win medals in , the National Sports Festival and other games, trials and competitions would be organized for the athletes in camp with a view to identifying and selecting the athletes that would do the State proud at various events. And, we also consider the welfare of the athletes and officials very important to boosting their morale.

 

3. Some of the projects and the provisions made in the 2020 Budget are as follows:

• Rehabilitation of the Main Bowl of the Ijebu-Ode, Ilaro, Sagamu, Stadia External works, electrification, road, water supply, drainages;
• Renovation of the pavilion and parking space at the MKO Abiola Stadium, Abeokuta;
• Renovation of the residential quarters for Government Officials/Judges/VIPs in Abeokuta.

 

Culture And Tourism

 

1. According to the Nigerian Bureau of Statistics (NBS), the tourism sector contributed 34% to our total GDP and generated 20% employment in 2017 alone, and still consolidating. And, with its direct impact on all groups of society, tourism is specifically considered an important factor to economic growth. The fact that Ogun State is home to very interesting artefacts and historic sites, the numerous and long-standing tourist centres and businesses such as the Bilrikisu Sungbo Shrine, Yemoji Natural Pool, Iwasi Eco-tourism Centre, Ebute Oni Tourist Beach, Olumo Rock Centre, Itoku Adire Market, Ijamido River Shrine, Erunwon Golf Resort, Ori Sagamu Ewa Shrine, amongst others, spread across the State shows that we are at more advantage to accelerate our dear States economy. That is why since inception of our Administration on the 29th th of May, 2019, we have continued to put structures in place not only to support these tourist activities, but to harness the potentials of the tourism sector towards wholesome socio-economic development of Ogun State.

 

2. As a matter of fact, Ogun State is proud to hold the flag in the entertainment industry with the highest number of prominent practitioners in all genres of arts and entertainment. Some of the Ogun State sons and daughters in the industry have indicated a strong interest to partner with the Administration to develop the entertainment industry as a way of promoting tourism and boosting the economy of the State. In fact, arrangements are in top gear for a partnership between our dear State and a special purpose vehicle organisation of Bankers committee to establish a multi-purpose Creative and Entertainment Village in Ogun State, the first of its kind in Africa. In the coming year, our Administration will continue to tap into the wealth and potentials of the tourism Sector as an important Pillar to providing good governance to our people. At the 2019 National Festival for Arts and Culture hosted by Edo State Ogun State came 2nd overall and 1st position in drama, 3rd position in arts and craft, 3rd position in children poetry and 4th position in indigenous fabrics and royal apparel. Also, at the International Arts and Craft exhibition held in Abuja between November 19th and 24th 2019 Ogun State came 1st overall, 1st in woodwork product design and also 1st in textile product design.

 

Roads And Transportation

3. As we embark of massive road construction and rehabilitation to ensure good transportation connections within our dear State and along our border lines, we will continue to ensure safety on our roads, and put measures in place to control traffic crises. We will have also taken it as part of the strategy to reintroduce traffic signs and signals on our roads for easy flow of traffic. As the Federal Government is putting finishing touches to the commencement of the full operation of the Lagos -Ibadan Rail Transportation system, efforts are in top gear to collaborate with the Federal Government and others to take the maximum advantage of the rail system towards industrial development in Ogun State. In fact, we are also to take the advantage of the berthing of the Wagon Assembly Plant towards job creation, poverty alleviation and food security in our dear State. So, much effort will be directed towards opening up of the rural areas to facilitate transportation of farm produce to major towns for industrial development. The refurbishing of all plants and equipment, completion of fire stations under construction and renovation of old ones will also be embarked upon.

 

Information And Communication Technology

 

1. In the 2020 fiscal year, the our Administration intends to strengthen existing structures with a view to continuing mobilization of the citizenry for participatory Governance, factoring their inputs into Programme Planning and holding the Government accountable. To this end, our Administration will continue to uphold the various grassroots oriented programmes and also upgrade the infrastructures of the Zonal Information Offices.

 

2. The support for OGBC, OGTV and other state-owned media will be intensified to bolster their performance as major organs of enlightenment of the citizenry and to properly reposition them for better coverage and quality programming. In this respect, a new set of Transmitters will be procured and installed, as a complement to the operations of the two media outfits. This project, when completed would have solved the issue of poor reception of OGBC and OGTV signals in remote areas of the State, as well as increase the revenue potentials of the Corporations. As a matter of fact, all the States information dissemination machinery are to be put on a very sound footing in order to ensure that we continue to be properly focused for the challenges ahead, involvement of the electorate in Governance, and accord accountability to the electorate in all our operations.

 

Local Government Affairs

3. Our Administration will continue to place a high premium on the States Traditional Institutions. in high premium. Let me say that due attention is currently being given to the recommendations of the Report of the Chieftaincy Review Committee inaugurated by our Administration to look into all the issues generated by the appointment and upgrade of some chieftaincies in Ogun State. In year 2020, the recommendations of the Report will be fully implemented. Again, efforts will be made to help expand the revenue base of our Local Governments and at the same time reduce their heavy dependence on Federation Account allocations. All policies and programmes of the Local Governments are to be ensured to be in line with the State Economic Empowerment Development Strategy as well as the Regional Master Plan.

 

Commerce And Industries

4. The stage of socio-economic development in this State today dictates that in the 2020 Budget, Government efforts will be further geared towards stimulating small and medium scale industries. In this regard, our Administration will continue to embark on the development of Micro, Small and Medium Enterprises (MSMEs). This is part of the strategy to stimulate agricultural and solid mineral processing at small business levels which has prospects of enhancing backward integration, improving quality of raw materials supply in the State and supporting the industrialization drive of Government. A sum of Nmillion has been set aside for this project in 2020.

 

5. The Public-Private Partnership will continue to be pursued initiated towards the engagement of the Business Community constructively on several fronts. In 2020, assistance will be offered to genuine investors who present feasible and potentially beneficial project ideas which they want to implement. Therefore, our Administration will continue to;

Ensure constant growth of our investment base through active portfolio management;

Provide more conducive environment for investment growth;

Continue the Rre-engineering of more ailing companies for improved performance including privatization as deemed necessary;

Repositioning of the Industrial Hubs for more business opportunities;

Partnership with local and foreign investors, embark on investment in viable business opportunities in different sectors of the State;

Promote micro finance and MSMEs financing to assist small entrepreneurs in the State.

 

Legislature

 

1. The democratic dispensation provides for three arms of Government for the governance of the State. The role of the Legislature is no less important than those of the other two arms. I therefore wish to implore this Honourable House to continue with its good work. Our Administration shall provide the required finances for the performance of the assignments of the House. A provision of N.8.074 billion has been set aside for the House of Assembly's recurrent and capital expenditures.

 

Judiciary

 

2. We will all recall that at the Inauguration of our Administration on 29th t h May, 2019, I made a solemn promise to the entire good people of our dear State that we will be fair, just, equitable and inclusive. This is what we have been doing by holding in taking to high esteem the role of the Judiciary in discharging good governance to our people. As part of our commitment towards a fruitful 2020, we will continue to provide a conducive atmosphere for the rule of law and cooperate with the other arms of Government within the constitutional permission of our Separation of Powers between the three arms of Government in our democratic system.

 

Security

 

1. Let me reiterate that we appreciate security as an important Pillar for good governance. A secured environment is imperative towards promotion of investment. Security is vital to any development agenda especially when we want to build a future., existing businesses can only thrive in a secure environment, new investment will grow in a safe environment, and the people could only prosper in their day-to-day activities in an atmosphere that is safe and secured. Therefore, of all the projects and estimates outlined in the 2020 Budget, we will continue to provide security for lives and property in our dear State. We will continue to complement the efforts of the Federal Government by supporting all the security agencies in our dear State. As a State that desires more private investment, we will continue to assure investors of safety of their lives and investments. In this wise, the Ogun State Security Trust Fund will continue to be accorded proper funding and logistics. And, for the protection and growth of the local investments and attraction of more investors into our Dear State, all our borders will be adequately secured to checkmate illegal movement of goods and services.

 

Conclusion

 

1. Mr. Speaker, Honourable Members of the State House of Assembly, I have laid before you the Appropriation Bill of our Administration for the Year 2020.

 

The challenges that lie ahead of us in the incoming year dictate that we should all work together. as we seek to create an enduring economy for our dear State and individual prosperity for our people, irrespective of gender, status, location, and religious or political affiliation. We have the indisputable judge of posterity looking over our shoulders to assess our performance and how well we have been able to keep our promises. Let me assure you that we are very resolute and we shall remain undaunted, undeterred and undisturbed in our effort to give our very best to our people. I, therefore, wish to solicit for the continued support and cooperation of this Honourable House to enable us collectively build a viable future for our dear State.

 

I trust that Honourable Members will show the requisite leadership that will give courage and confidence to our people. I Let me also hereby express gratitude to is my hope also that this Honourable House for will expedite the passage of the Public-Private Partnership Bill for the facilitation of our development plan, particularly for the successful implementation of the Building our Future Together Agenda. We seek a partnership that will help in running government more efficiently in the light of economic challenges that call for more discipline and probity.

 

In closing, let me acknowledge the trust and confidence that the good people of Ogun State have continued to repose in our Administration. This is a great honour and privilege. More importantly, it is another opportunity for us to show the world our capability to serve our people with utmost honesty and transparency. 22. In the same vein, we wish to appreciate the invaluable support and cooperation of all our partners, including the stakeholders especially from the Private Sector which have continued to make our Administration a reference point, within and beyond the shores of Nigeria. Our gratitude especially goes to our Party Leaders, our revered Royal Fathers and Elder Statesmen, Spiritual leaders, Development Partners, non-Governmental Organisations, Civil Society, Professional Bodies, Trade Associations, the Private Sector, the Press, our dedicated and committed Public Servants, Students and all well-meaning individuals and bodies of corporations, Comity of associations and unions, artisans and others, too numerous to mention, for their continued support and cooperation. Special mention must be made of the immense supports of the financial institutions across our dear State towards ensuring the successful implementation of the Building our Future Together Agenda. We look forward to more of your support, dedication, cooperation and collaboration in the coming years. I end on a note of hope. Like Nelson Mandela stated at his Inauguration as President of South Africa, The task at hand will not be easy, but you have mandated us to change from a land in which the majority lived with little hope, to one in which they can live and work with dignity, with a sense of self-esteem and confidence in the future. This is the good tiding that our Government brings to the good people of our dear State.

 

Mr. Speaker, Honourable Members of the State House of Assembly, permit me to lay before you the Appropriation Bill of our Administration for the Year 2020.

 

Let me borrow the words of a catholic Saint, Mother Teresa of Calcutta (1910-1997), None of us, including me, ever do great things. But, we can all do small things, with great love, and together we can do something wonderful.

 

Mr. Speaker, Honourable Members of the Ogun State House of Assembly, let me assure you that in the in-coming year we shall strive with renewed strength and vigour to make our dear State the best in service delivery to our people and solidly entrench the foundation for continued socio-economic development or our dear State.

 

I thank you all for listening. God Bless Ogun State.

Igbega Ipinle Ogun, ajose gbogbo wa ni!

 

Prince Dapo Abiodun, MFR,

Governor of Ogun State, Nigeria.

Tuesday, 3rd December, 2019

 

Credit: 

The post Full Speech of Ogun State Govornor, Dapo Abiodun at 2020 Budget Presentation first appeared in Platform Times on December 03, 2019

 

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