Abia State Budget Speech valedictory, economic expansion and stability budget
PRESENTED BY OKEZIE VICTOR IKPEAZU. PHD-
GOVERNOR OF ABIA STATE, NIGERIA
TO THE 7TH ABIA STATE HOUSE OF ASSEMBLY,
ON WEDNESDAY, 30TH NOVEMBER, 2022
Protocols:
Mr. Speaker, Honourable Members of the 7th Abia State House of Assembly, I have the honour to present the 2023/25 Fiscal Year Abia State Budget Proposals (Estimates) to this Honourable House.
On this occasion, I wish to once again commend your efforts on the early passage of the 2022 Appropriation Law implementation of which started on 1st January, 2022. Your support has made it possible to sustain the January to December Budget Cycle and fiscal implementation in Abia State during my Administration.
As is our practice, I will present the highlights of the State 2023 draft estimates and budget proposals. The Honourable Commissioner for Finance will later provide the details of these proposals in his breakdown.
RECENT AND CRITICAL DEVELOPMENTS
Mr. Speaker and the Honourable Members of the 7th Assembly, as you all are aware, global and national economies still face significant challenges even now. Prominent among these are:
The lingering effects of the COVID-19 pandemic – though the COVID-19 pandemic has subsided, the after-effects remain. Significant costs are still being incurred to ensure curtailment and prevention of recurrence of the phenomenon. A number of the businesses affected then are yet to fully bounce back. Most of the jobs lost are yet to be recovered. Importantly too, approaches to interaction for both individuals and businesses have been permanently altered. New norms have been set, with their attendant costs and implications.
Instability in crude oil prices and production – Oil still remains the key revenue and foreign exchange earner for the country and we have all been witnesses to the challenges facing its production and prices. Oil theft has undermined production while international prices continue to fluctuate, affecting accruable revenues for all tiers of Government and even the Nigerian macro economy.
The Russia-Ukraine war – the Russian Ukraine war has lasted a number of months and there are no indications it will end soon. Given the two nations at war, it is no surprise that it has precipitated global crises in energy and food supplies and prices.
Rising insecurity – it becomes important that we mention this, not just as a problem within Abia or Nigeria, but as a global issue which has important implications for how Governments receive and spend monies. This Administration has spared nothing to make Abia one of the safest places to do business in Nigeria. We intend to continue to do all we can to immune the State from all forms of insecurity.
The 2023 general elections and transition– the year 2023 is an election year and there is need to maintain peace and order in the midst of intense political activities. The Government will also need to collaborate with Governments of neighbouring States to ensure maximum harmony. For us as an Administration, it is a transition year and we must do all in our power to ensure that not only is that transition smooth but that the new Government takes off on a good note.
Every economy has to design its own peculiar and unique solutions to the prevailing global problems. What policy reforms and investments should be prioritized and what trade-offs should be made between costs and benefits have to be localized. And in putting together this year’s Abia budget, we have these in mind.
REVIEW OF THE ADMINISTRATION MAJOR MILESTONES
I want to quickly recall the first Budget proposal presentation by this Administration in 2016 before the 6th Assembly in this hallowed Chamber. Then, we promised to improve the infrastructural development and socioeconomic well-being of Ndi Abia. Today, we can comfortably assert that we have pushed to deliver on those promises.
In the past seven (7) years and some months, this Administration has recorded modest achievements across several sectors of the State’s economy. Through support and partnership with the Federal Government and several Development Partners, it has also introduced institutional and legal frameworks that will facilitate delivery of improved socioeconomic programmes to poor and vulnerable households by future Administrations.
In all these, the goal remains to find options for better life and livelihood for all Abians. And evidence shows we have not done badly. The most recent multidimensional poverty survey by the National Bureau of Statistics shows that only Ondo and Lagos surpass Abia in having the least proportion of poor people in Nigeria as at 2022.
The Government has pursued a number of signature projects across a range of sectors, which pooled together, are aimed at improving the livelihood of Abians. Some of these include:
Completion of Osisioma flyover, Aba.
The Aba drainage and water control projects.
Development of Abia State Long term Plan (2020-2050), giving the State a Trade Policy for the first time and having other sectoral policies clearly outlined.
Building a Social Register for the first time in the State through the support of Federal Government and the World Bank. Through this programme many households have been supported and several interventions are still ongoing.
Construction and completion of several roads and infrastructural projects in the State.
Improvement in the area of provision of medical and health facilities in the State.
Construction, rehabilitation and renovation of several classroom blocks in the State through UBEC programme.
Interventions leading to the realization of the Geometric Power at Aba.
We are working to deliver a detailed compendium of the projects undertaken and completed by this Administration between 2015 and 2023 for the public. The compendium will also indicate identified gaps from where the incoming Administration can start. We cannot claim to have delivered on all our campaign promises but we will continue to do our best towards that goal till the last day of this Administration. Fortunately, Government is a continuum and we will hope (and plead) that successive Governments build on our achievements.
BUDGET THEME & FISCAL TARGETS OF THE 2023 BUDGET
Mr Speaker and Honourable Members of the 7th Assembly, the theme of the 2023-2025 Medium Term Expenditure Framework is “Valedictory, Economic Expansion and Stability Budget”. The 2023 Budget is designed to focus on the successful completion of on-going programmes and projects that have direct bearing on the people’s wellbeing. This will enable the Government to consolidate the gains of the past years in the provision of social amenities for the people. We also see this as an opportunity to pursue recovery by redirecting resources to improve on the production chain in the State and add value to products from our people. It is an opportunity to complement established suppliers and producers with cost-effective, quality products from our people.
Furthermore, the 2023 Budget will only be partially implemented by this administration. Therefore, it is imperative that we put the revenue and expenditure structures on a sound footing to help the incoming administration take off effectively. Prioritizing stability, in our view, will create confidence, which in turn will encourage investment. We prepare this budget as a complement and a necessary signal for the private sector to increase investment in the production and supply chains of the State’s economy.
Intended Measures
The following measures will be taken by the Government in the pursuit of its intentions under the 2023 fiscal year:
Foster the security of lives and property by targeting the roots of communal violence, crime and other potential sources of insecurity.
Continue to promote good governance founded on competent and responsive public service with zero tolerance for corruption.
Build, maintain, and expand infrastructure in water, electricity and road networks to accelerate economic growth and create jobs.
Promote agriculture and food security through greater access to inputs and rural access roads. Support emphasis on agriculture as a source of wealth creation and capital formation in its own right.
Continue to engage Ease of Doing Business platforms to support trade and investment, industry and SMEs, remove obstacles to investment and help operators in Abia business environment to find and exploit opportunities.
Ensure completion and commissioning of Automated Garment Factory and other clusters.
Remodeling of key markets in Aba like Ariaria International Market and New Market.
2023 BUDGET FRAMEWORK
ABIA STATE BASIC 2023 MICRO ECONOMIC ASSUMPTION
Mr. Speaker, Honourable Members, the State adopted 2023-2025 Medium Term Expenditure Framework and Fiscal strategy paper of the Federal Government which set the parameters for the 2023 Budget as follows:
Benchmark oil price of $70.0 per barrel;
Daily Oil Production of 1.69 million barrels;
Exchange rate of N435.57 per US Dollar;
Projected GDP growth rate of 3.75%; and
Inflation rate of 17.16%
The Total projected Budget outlay for 2023 fiscal year is N157,517,504,300 (One Hundred and Fifty-Seven Billion, Five Hundred and Seventeen Million, Five Hundred and Four Thousand and Three Hundred Naira only showing an increase of 6.95% from the 2022 Budget.
The Break Down is as follows:
1) Recurrent expenditure of N75,044,764,400 (Seventy-Five, Billion and Forty Four Million, Seven Hundred and Sixty-Four Thousand, Four Hundred Naira) which is 47.64% of the total expenditure and 11.73% increase from the 2022 Budget.
Components of the Recurrent Expenditure are as follows:
Personnel Cost:- N33,689,581,700
(Thirty-Three Billion, Six Hundred and Eighty Nine Million, Five Hundred and Eighty One Million, Seven Hundred Naira)
Overhead Cost:- N19,192,659,300
(Nineteen Billion, One Hundred and Ninety-Two Million, Six Hundred and Fifty-Nine Thousand, Three Hundred Naira)
Consolidated Revenue Fund Charges:- N22,162,523,400
(Twenty-Two Billion, One Hundred and Sixty Two Million, Five Hundred and Twenty Three Thousand, Four Hundred Naira)
2) Capital expenditure of N82,472,739,900 (Eighty-Two Billion, Four Hundred and Seventy-Two Million, Seven Hundred and Thirty-Nine Thousand, Nine Hundred Naira) which is 52.36% of the total Budget expenditure and 3.38% increase from the 2022 Budget.
The Sectoral allocation of the Capital expenditure is thus:
Administrative Sector- N15,184,970,000
(Fifteen Billion, One Hundred and Eighty-Four Million, Nine Hundred and Seventy Thousand Naira).
Economic Sector:- N48,782,088,800
(Forty-Eight Billion, Seven Hundred and Eighty-Two Million and Eighty-Eight Thousand, Eight Hundred Naira)
Law & Justice Sector:- N821,547,300
(Eight Hundred and Twenty-One Million, Five Hundred and Forty Seven Thousand, Three Hundred Naira)
Social Sector: N20,684,133,800-
(Twenty Billion, Six Hundred and Eighty-Four Million, One Hundred and Thirty Three Thousand, Eight Hundred Naira)
CONCLUSION:
Mr. Speaker, Distinguished and Honourable members of the 7th Assembly, let me use this opportunity to commend your firm commitment towards ensuring a very harmonious and productive relationship with the Executive. The challenges in the coming year require that all of us must work together to deliver on our promises and commitments.
It is with great pleasure, therefore that I lay before the Distinguished members of the 7th Abia State House of Assembly the 2023 Budget proposals of the State Government, for your kind consideration and passage. I thank you and may God continue to bless Abia State.
Okezie Victor Ikpeazu, PhD, FNES
Governor, Abia State
November 30, 2022.
0 Comments