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Economy | State and Local Govts

Infrastructure, Education and Works Get Priority in Makinde's N208bn 2020 Oyo State Budget

Nov 28, 2019   •   by   •   Source: Proshare   •   eye-icon 3128 views

Thursday, 28November 2019   /  07.55AM / By News Room  /   Header Image Credit: oyostate.gov.ng


 

Being the 2020 Budget Speech delivered by His Excellency,Seyi Makinde, Governor of Oyo State; at the Oyo State House of Assembly onWednesday, November 27, 2019.

 

Protocols.

 

I am here today to present to you the Oyo State BudgetProposal for the 2020 Fiscal Year.It is a budget that captures the aspirationsof the good people of Oyo State.

 

The farmers in Ido, Ilora, Ijaiye, and Akufo who wake upevery morning hoping this is the day their relief will come. When the roadsthat link their farms to markets will be built and they can make more money fortheir toil.

 

The market women and men in Gbagi Titun Market as well asthe rural markets in Iresadu and Eruwa, whose hope is that the economy can bebuoyant enough so that people can buy from them.

The drivers and conductors on Iwo Road, Ogbomoso, Ipapo andLalupon who do not want to spend all their takings on bus repairs.

 

The civil servants at Agodi Secretariat who put in anhonest day's work and just want to get their salaries paid on time so they cancare for their families.

 

The students in public primary, secondary and tertiaryinstitutions who want quality education so they can compete favourably withtheir counterparts worldwide.

 

The old, the sick and infirm who want to go to a governmenthospital and get quality service without paying out of pocket.

 

The small and medium scale business owners who want anenabling environment for their business to thrive.

 

The big corporations who set up industries in Oyo Statebelieving that government will play their role in providing a conduciveenvironment for sustainable growth.

It is a budget that every woman, man, and child in Oyostate can relate to and be proud of.

 

A budget in keeping with our Roadmap for AcceleratedDevelopment in Oyo State 2019-2023.

 

OurBudget

 

Mr Speaker Sir, Honourable Members, this is the first timeI will be coming before you to present and defend a budget that is wholly thisadministration's own.

 

The Oyo State Appropriation Review and Finance Bill 2019was transmitted to this assembly after we had revised the figures of the OyoState Appropriation Act 2019, so that it can better cater to the needs and thewellbeing of the people of Oyo State.

 

With the total budget of N285.2Billion and pro rata revenueestimates of N71Billion in quarter one (Q1) 2019, only the sum of N28Billionrepresenting 10.01% of total budget and 38.68% of the pro rata estimate wasachieved. Similarly, the expenditure performance at the end of quarter one (Q1)2019 was N27Billion compared to the prorated sum of N71Billion. This presenteda budget performance of 38%. Hence, our administration reduced the total budgetsize from N285.15Billion to N182.39Billion to make it more in tune with presentincome and expenditure, representing a reduction of 36% on the average. Inspecific terms, the budgetary provisions for the office of the Governor and theState House of Assembly were reduced by 40%.

 

But, as any good manager will tell you, it is better tocreate your own plan than to repair a defective one. Little wonder that, thelast administration's budget achieved under 40% implementation.

 

Please permit me to share with you some of the key areas ofthe 2020 Oyo State Budget Proposal highlighting our revenue and expenditureplans and how this will contribute to the accelerated development of theeconomy of Oyo State.

 

Let me start by saying that we are aiming for at least 70%budget implementation. We believe we can even exceed this because we are notbuilding castles in the air. Our proposed budget income matches our proposedexpenditure.

 

So, in keeping with the yearnings of the people of OyoState which they communicated to us during the budget town hall meetings weheld across the three senatorial districts, our focus areas remain:

 

Works

 

Infrastructure has the highest percentage allocation in the2020 Fiscal Year's Budget at 23.93% of the total sum allocated.

 

Mr Speaker Sir, it is our plan to be bullish withinfrastructural development, especially road construction. Recently, we awardedthe contract for the Moniya-Ijaiye-Iseyin road with a completion agreement oftwelve months. The contractor has since moved to the site and commenced work.

 

We are also collaborating with the Federal Government torehabilitate the Oyo - Iseyin road, while engagements are in progress with theFederal Government to hasten the completion of the Oyo - Ogbomoso Dual CarriageWay.

 

With properly constructed and repaired roads, our farmersand others engaged in business in rural areas can move themselves and theirproduce to markets where they can get better prices. Therefore, the completionof these roads is a priority. To this end, the sum of N35.4Billion has beenprovided in the 2020 budget for ongoing and proposed roads projects in all thesenatorial zones.

 

Meanwhile, the Oyo State Road Maintenance Agency has beenmandatorily restructured and directed to establish zonal offices at Oyo,Ogbomoso, Saki and Ibarapa, to achieve an effective spread of its activities.

 

Let me reiterate that this administration will complete allongoing viable projects to which the state's funds had been committed.

 

Another infrastructural project we have embarked on is "Light Up Ibadan." We installed Smart LED Street Lights in Ibadan and this hascontributed to the security of these areas. We will be replicating this projectacross the major towns and cities in Oyo State. Government will also procurenew fire fighting vehicles, ambulances, water tankers and communicationequipment.

 

Education

 

Honourable Members of the Hallowed Chambers, educationremains a big issue in Oyo State. We have started tackling head on the numberof out-of-school children in Oyo State by providing free education in publicsecondary schools. We followed up by providing the students with free exercisebooks and textbooks. We have also made these textbooks available for downloadonline on the Oyo State Ministry of Education, Science and Technology website.Recently, we awarded the contract to produce a compilation of past examinationquestions in ten subjects for Senior Secondary School 3 students, to help themprepare for WAEC exams.

 

However, we are having challenges with teacher recruitment,training, and workforce development. We also need to construct and renovatemore classrooms in schools across Oyo State and provide them with neededsecurity. In addition, we need increased funding for our state-owned higherinstitutions to better position themselves for human capital development. Inthe 2020 budget, we have provided for capital projects in this sector alongwith regular payment of subvention.

 

For these reasons, Education comes a close second to Workswith a total allocation of 22.37% of the budget.

 

Healthcare

 

The other area which has been prioritized in the 2020budget is Healthcare at 5.18% of the total budget proposal.

 

On assumption of office, we discovered that our hospitalswere mere consulting clinics due to lack of basic functional medical equipment.In September, we installed and commissioned the Radio-diagnostic Unit, asurgical operation theatre and an automated medical laboratory at the AdeoyoState Hospital, Ring Road. This ensures quality healthcare delivery to the peopleof Oyo State.

 

In the next fiscal year, similar facilities will be rebuiltor renovated in other State Hospitals. Similarly, the General Hospitals inEruwa, Tede and Iseyin will be renovated in the 2020 fiscal year.

 

With this development, there is greater pressure on healthfacilities and thus a need for more personnel. I have, therefore, givenapproval for the recruitment of five hundred (500) Medical and Health Workersin our hospitals, at the State College of Nursing and Midwifery as well as theCollege of Health Science and Technology.

 

Agriculture

 

Mr Speaker Sir, Honourable Members, we remain determined toutilize agriculture to drive our economy and have allocated 4.43% of the totalbudget proposal to this sector.

 

We are implementing policies that will transform farmingactivities, increase production, and improve the quality of food crops,livestock exports and industrial crops through application of moderntechnology.

 

We are presently working at upgrading two of the nine farmsettlements in Oyo State at Eruwa and Akufo into Farm Estates. These estateswill also serve as crop processing zones with the required technology andmechanisation practices.

 

Oyo State Agricultural Development Programme (OYSADEP)headquarters is hereby moved back to Saki Town. It will be restructured andfully strengthened for efficient and effective performance of itsresponsibilities.

 

Let me, also use this opportunity to remind you of the10,000 metric tons capacity silo at Aawe - Oyo Town, which has been embroiledin legal controversy. I am happy to inform you that the case has been settledout of court and the contractor has since gone back to site. We have anagreement that the project shall be ready for commissioning in the next tenmonths.

 

Other areas of the budget that require considerationinclude:

 

PersonnelCost

 

Starting from June 2019, we have consistently paid staffsalaries on the 25th day of every month. We have also consistently increasedthe allocation to payment of gratuities to steadily offset the huge backlog.Staff Housing Loan has increased from Two Million Naira to Three Million Naira,while the Staff Car Loan Scheme has been increased from Five Hundred ThousandNaira to Seven Hundred Thousand Naira.

 

You may be surprised that despite all these increases, thefact that we plan to promote ten thousand civil/public servants who have beeneligible for the past two years, and accelerate the Conversion/Transfer andAdvancement proposals of about Four Hundred (400) interested civil/publicservants, we were still able to keep the personnel cost down by over 10%compared to the 2019 budget. One of the key reasons for this is that we arecarrying out a staff audit and creating a database of all staff in the OyoState civil and public service. This ensures that we do not pay ghost workersor persons who possess fake certificates, and that we maintain uniformguidelines for appointment, promotion, and the discipline of civil/publicservants in Oyo State.

 

CapitalExpenditure

 

You will also note that our capital expenditure increasedby about 20% compared to the 2019 budget. Total capital expenditure ofN100,142,690,046B, is 47.9% of the total budget estimate. The importance ofthis increase should not be lost on us. Increased allocation to capitalprojects directly contributes to a more buoyant economy and sustainabledevelopment. As stated earlier, we will not only be starting new projects butalso completing all ongoing projects from the previous administration.

 

In all, Mr Speaker Sir, Honourable Members, I am happy toreport that we have kept our promise to the people of Oyo State. When we setout to prepare the budget, our aim was to keep the budget realistic. To preparea budget where projected revenue matches projected cost, unlike what has beenthe practice in the past.

 

 

 

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Revenue

 

In 2019 for instance, the last administration projectedN25.55Billion as revenue from MDAs and N91.59Billion from StatutoryAllocations. These projections were higher than could be achieved. We have hadto mark these down by 4.79% for MDAs and 6.08% from Statutory Allocations.However, we have reviewed Internal Generated Revenue (IGR) upwards based onvarious strategies we have put in place. We are expecting monthly revenue of atleast Three Billion Naira starting from January 2020. You will be happy to hearthat in the month of October, we were able to increase the state IGR by FourHundred Million Naira, such that we had an IGR of Two Billion, Seven HundredThousand Naira recorded for that month.

 

The last two sources of revenue are Capital Receipts whichare down by about 10% to N33.50Billion compared to the 2019 budget, and Loansfor Capital Projects at N28.99Billion.

 

Close

 

It is therefore with a deep sense of responsibility that Ipresent to you The Oyo State Budget Proposal for the 2020 Fiscal Year. I canassure that every kobo of the Two Hundred and Eight Billion, Eight Hundred andTwo Million, Nine Hundred and Seventy-Two Thousand, Eight Hundred and SeventyEight Naira Zero Kobo is accounted for. Every single expenditure is gearedtowards facilitating the accelerated development of our beloved Oyo State.

 

Mr Speaker Sir, Honourable Members of the House, I said atthe outset that this budget is of the people and for the people. I stand by myword. With this budget, every citizen of Oyo State has a workable plan thatthey can identify with. It has been my honour to present it to you and myprayer is that you give it due consideration in a timely manner so thatimplementation may commence and Oyo State will indeed get on the path toaccelerated development.

 

God bless the Federal Republic of Nigeria.

 

God bless Oyo State.

 

Proshare Nigeria Pvt. Ltd.

 

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