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OBIANO PRESENTS BUDGET OF N157.1B TO STATE ASSEMBLY

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OBIANO PRESENTS BUDGET OF N157.1B TO STATE ASSEMBLY

A SPEECH BY HIS EXCELLENCY, CHIEF WILLIE OBIANO AT THE PRESENTATION OF THE 2019 BUDGET ESTIMATE TO THE STATE HOUSE OF ASSEMBLY
Protocol



Your Excellency, the Deputy Governor,
The Honourable Speaker, Honourable Deputy Speaker,
Principal Officers of the House and other Honourable
Members of the Anambra State House of Assembly,
The Chief Judge of Anambra State,
The Secretary to the State Government,
The Chief of Staff,
The Head of Service,
Honourable Commissioners,
Special Advisers to the Governor,
The Clerk of the House,
Permanent Secretaries,
Principal Officers
Senior Special Assistants to the Governor,
Special Assistants to the Governor,
Members of the Press,
Distinguished Ladies and Gentlemen,
Good morning everyone.
1. With great humility, I stand before you today, to present my administration’s Draft Estimate and Roadmap for the 2019 Fiscal Year.

2. Madam Speaker and Honourable Lawmakers, the 2018 Budget offered us a great opportunity to distil the promise of my Economic Blueprint further in pursuit of a better Anambra State. And I am happy to report that even in the face of adversity, we remained firmly focused on our goals. We stayed true to our Vision of making Anambra State the First Choice Investment Destination and a hub for industrialization and commercial activities.
We also kept to our Mission of making Anambra State a socially stable, business-friendly environment that would attract both indigenes and foreigners to seek wealth-creating opportunities.
A REVIEW OF THE 2018 FISCAL YEAR



3. Madam Speaker and Honourable Lawmakers, the outgoing year 2018 is a watershed in the history of Anambra State and more so in the life of my administration. My Team and I were sworn in for our Second Term in office after a historic re-election that has become a landmark in the political narrative of Nigeria. And immediately after the ceremonies, we settled down to the brass task of providing effective leadership for Ndi Anambra.
4. Indeed, 2018 has also been a remarkable year for the country. It is no longer in doubt that Nigeria has come out of the economic recession that ravaged her from 2016. Studies show that the Nigerian Economy has continued to recover from the recession with the annual GDP Growth Rate moving from -1.5 in 2016 to 0.8% in 2017 and 1.5% in 2018. Similarly, the GDP of our dear State, Anambra has continued to grow exponentially in comparison to that of the country moving from 1% in 2017 at 3.8 trillion to 6% at 4.02 trillion in 2018. This is not surprising, however. Under my watch, Anambra has become the fourth largest economy in Nigeria.



5. Sadly, Madam Speaker and Hon Lawmakers, Nigeria may have come out of recession but it hasn’t come out of its many domestic challenges. Boko Haram remains a potent threat to the peace and security of this country and a huge discouragement to meaningful investments.
6. The colossal loss of human lives caused by the endless clashes between herdsmen and farmers made global headlines and marked Nigeria out as one of the most unsafe places in the world. It cost Nigeria a great deal in investment and goodwill and heightened mutual suspicion among ethnic and religious groups.
7. The twin threats of Boko Haram in the North East and Herdsmen-Farmers Clashes in the North Central have continued to cast a huge shadow over Nigeria and send a negative signal about the country to the world. This has had adverse effects on the economy.
8. Torrential flooding swept across coastal communities, submerging huge investments and sweeping away farms and diverse income sources.



9. But in the middle of all the doom and gloom, our country took a bold step into the sunrise when Mr President commissioned the highly impressive Abuja-Kaduna Light Rail Project in July. It was a symbolic initiative that demonstrates Nigeria’s bold resolve to shake off her many problems and march forward into a bright new day.
The Anambra Scenario
10. Madam Speaker and Hon Lawmakers, the year under review is a milestone for Anambra State. It is the year in which our dear state finally lived out the full meaning of its name as “Light of the Nation” on the world stage. Yes, five school girls from Regina Pacis Model Secondary School took the world by storm when they swept aside advanced countries like the US, China, Spain, Turkey and Uzbekistan to win the Gold Medal at the World Technovation Challenge in San Francisco, USA. Adaeze Onuigbo, Vivian Okoye,
Promise Nnalue, Nwabuaku Ossai and Jessica Osita of Regina Pacis Model Secondary School Onitsha have justified our massive investments in Education and other efforts to turn our schools into models of excellence. It is something for an African team to win medals in sports and the arts, but it is something extraordinary for a group of girls from Nigeria (not South Africa, mark you) to defeat the USA, China, Spain and Turkey in a science and innovation contest.



11. We also demonstrated to the world that the performance of the Golden Girls is a product of careful planning and solid investments when our own Amala Ezenwa, a Primary 4 Head Teacher from Awada won the overall Best School Administrator in Nigeria during the period under review.
Ezenwa’s success is clear proof that Anambra has done a great deal of work in foundational education to ensure sustainability in the excellent performance of our children in all academic competitions. In the period under review, we donated the sum of N211,168,125 to the Catholic Church and N145,968,750 to the Anglican Church for interventions in mission schools in the State. We shall do more in the next fiscal year.
12. Madam Speaker and Hon Lawmakers, my administration demonstrated a great capacity to manage crisis this year when torrential flooding submerged a large portion of Anambra North. We rose to our full height to forestall what would have been a large-scale disaster. Our timely response and swift deployment of rescue and relief efforts to affected areas made a world of difference.



13. In spite of threats to break our resolve, my administration maintained a firm handle on the security situation in the state to ensure that Anambra is not displaced as Nigeria’s safest state. Our courageous decision to outlaw commercial motorcyclists in Onitsha and Awka quickly put a strong check on petty crimes in these cities and guaranteed safety for the masses.
14. And shortly after my inauguration, we donated 40 patrol trucks to security agencies to tighten our efforts a little and 50 motorcycles to the Special Motorbike Squad to mop up petty criminals. Similarly, our visionary Cattle Menace Committee ensured that Anambra did not fall victim to the widening circle of violence unleashed by the clashes between herdsmen and farmers. We have succeeded in bringing crime under our heels in Anambra State and we shall keep it like this by the Grace of God.



15. Despite the fact that Nigeria has exited recession, we have continued to implement the Economic Stimulus Package which was designed to reflate our sub-national economy and put more money in the hands of our people during the recessive period. We have doubled the N20m Choose-your-Project initiative and many communities have completed the projects they chose in the second phase of the project. 40 new communities have already applied for the 3rd Phase of the projects.
16. Madam Speaker, Agriculture remains a major pillar of my administration. I am delighted to report once again that in spite of the menace of a flood which washed most of our coastal communities away and swallowed hectares of farmland, major performance indicators point to a positive growth in the 2018 planting season. For instance, our efforts to make more people embrace farming yielded an impressive result. Over one thousand new farmers were duly registered within the period to bring the number from 109,137 in 2017 to 110,144 farmers.
Similarly, Rice production rose from 345,000 metric tons in 2017 and currently stands at 440,000 metric tons. Cassava production shot up from 1,792,596 in 2016 to 1,881,589 metric tons in 2017 while Maize production increased from 39,902 to 43,521 metric tons in the last planting season. Land utilization also increased in the period under review due to the influx of more people into agriculture.



17. Madam Speaker and Hon Legislators, our passionate drive for improved infrastructure found great expression with the Light-up Anambra Campaign. Under this initiative, we have lit up over 500 kilometres of roads across the state and extended rural electricity to 5 local government areas including Orumba North and South, Anambra East and West and Ayamelum.
We also extended 33KVA lines from Awada to Nnewi North at a cost of N1.8bn to boost power supply to Nnewi which is an industrial hub. We have also rehabilitated over 100 moribund rural and small town water schemes and are currently intervening in 60 projects across vulnerable and poor communities in the State.
18. Madam Speaker and Honourable Lawmakers, I am proud to report to Ndi Anambra once again that my administration did not drop the ball in the construction of roads and bridges in the outgoing fiscal year. Having made it clear at the onset of this administration that I was interested in building roads that would have economic importance, we targeted the completion of 40 roads before the rainy season made road construction impossible and almost surpassed our target.
I personally supervised the placing of beams on the Umueje Bridge in Ayamelum Local Government Area and the Nengo River Bridge in Nteje. I am happy to report that we have achieved the construction of a total of 300 km of roads spread across the 21 LGAs in the State.



19. Madam Speaker and Honourable Lawmakers, I am also delighted to report here that we set up the Project Management and Monitoring Office in April 2018 and through this agency, we have achieved a continuous data collection of the status of all projects in MDAs. I am happy to announce that the PMMO has saved the State Government the sum of N468,654,956 invariance on Contractors’ claims in certificates through a rigorous evaluation of claims before payment. It has also saved us over N400m from vetting alone.
20. Madam Speaker, I am happy to announce that after a protracted delay that lasted for one year, the Anambra Airport City Project finally got underway. The special drone brought in for the aerial survey of the project was seized by the Nigerian Customs in November 2017 and only released last week.
The seizure had halted the speed with which the project had taken off with ground survey and sent the wrong signal about the authenticity of the project. But to the glory of God, the drone has been released and quickly put to use on the location by the Chinese.
The aerial survey has been completed and we await the next phase of the implementation of the construction plan of the project. We have earmarked the sum of N1bn in commitment funds to ensure that the project is executed to the letter. I have no doubt that the Airport City Project will unlock the economic growth of the South East region and position Anambra State as the leading hub in the aviation industry in Africa.



21. My administration also facilitated the full digitization of the Anambra Broadcasting Service (ABS), making it the most technologically advanced TV and Radio station in West Africa this year. ABS will be the first broadcast station to move from analogue to digital broadcasting once the National Broadcasting Commission begins the third phase of digital switch-over.
We have opened negotiations with Multichoice Limited in Lagos for the addition of ABS to the DSTV platform. Broadcasting on the DSTV platform will make the station more competitive, as it will be the first TV station in the South East to be included on this platform. Consequently, ABS is undergoing the transformation in the Editorial and Programmes Departments, including the procurement of state of the art cameras and materials for the editing and production suite of the Film and Video Censorship Department of the Ministry of Information & Public Enlightenment.



22. Madam Speaker and Hon Legislators, if we cast our minds back to when this administration started five years ago, I assured Ndi Anambra that my philosophy would be ana alu olu, ana alu mmadu! Madam Speaker, I have kept my promise. Even in the midst of extremities, we have never failed to pay salaries on time. We have also never failed to celebrate Christmas with bags of rice for workers. Pensions have been paid to our senior citizens and recently, the State Civil Service Commission conducted and successfully released the 2016 promotions for civil servants, covering senior management officers, senior officers and junior officers. Promotions are landmark events in the service, demanding huge financial outlay on the part of the Government, and salary increments for the deserving officers. Several State Governments across the Federation shy away from promotion exercises, so as to conserve funds but our story is different in Anambra State.
23. Indeed, we have continued to remind Ndi Anambra in more ways than one that this administration is all about the people, including women and children. To this effect, we have inaugurated the State Steering Committee on Child Labor in a bid to tackle the hydra-headed monster of child labour and trafficking. There has also been an increase in awareness creation on the dangers of child labour, abuse & trafficking. The Ministry of Women and Children Affairs has in collaboration with Caring Family Enhancement Initiative (CAFÉ) trained and empowered more than 4000 people on different skills. It has also provided psycho-socio support to more than 4800 orphans and vulnerable children across the 21 LGAs.



24. Madam Speaker and Honourable Lawmakers, at the middle of 2018, we had achieved a recurrent expenditure budget performance rate of approximately 55% while our capital expenditure budget performance stood at approximately 50% mainly due to the delay caused by the flood. This led to an aggregate half-year budget performance of 52%.
However, I expect our overall budget performance to improve to approximately 75-80% by the end of the current fiscal year.
The 2019 BUDGET
25. Madam Speaker and Honourable Lawmakers, in the last 5 years of my administration I have worked ceaselessly with members of this hallowed chamber to tackle various key socio-economic issues that affect Ndi Anambra. And happily, our dear state has improved tremendously in all indices of development despite dwindling resources from the centre.
26. Therefore, I, the Governor of Anambra state, submit to this hallowed chamber the draft estimates of the 2019 budget titled “Budget for Sustained Economic Growth and Youth Empowerment”. The proposed budget has a total size of N157.1bn with 41.3% earmarked as recurrent expenditures and 58.7% for capital expenditures. Madam Speaker, these draft estimates for 2019 clearly demonstrate my administration’s determination to continue delivering good governance and purposeful leadership to Ndi Anambra.
The 2019 Budget Policy Thrusts:



27. Madam Speaker and Honourable Lawmakers, the 2019 draft budget estimate were created in line with the following policy thrusts:
a. Resource Planning and data optimization:
28. In the 2019 fiscal year, we plan to review our 4-year State Development Plan and finalize the preparation 2019-2021 medium-term sector strategies across key MDAs. We also plan to ensure increased capacity building for officers involved in the budget preparation and execution.
This will strengthen the resource allocation and utilization process and ultimately ensure that we achieve more in sectors that will benefit the populace. Presently we are working in collaboration with a budget to simplify our annual budget to ensure that Ndi Anambra understands the allocations to areas that affect their lives and fully participate in monitoring the implementation of the budget.
29. Maximizing the use of data in planning is a key focus of this administration in the upcoming year and we are set to completely transform the State Bureau of Statistics to a world-class institution that will gather data, analyze and disseminate information that supports policy formulation and implementation and improve our IGR. We intend to leverage technology to achieve this transformation.
30. Development partnership coordination has been strengthened to ensure that donor assisted projects fully align with the strategic priorities of the state. We have also created a portfolio coordination office specifically to sustain our performance in World Bank assisted projects and programmes in the State.
b. Increased Internally Generated Revenue



31. We are focused on ensuring improved fiscal sustainability and we intend to achieve this by increasing Internally Generated Revenue. We have put structures in place to improve revenue by carrying out and harmonizing enumerations across all revenue generating agencies.
Automation and enforcement will also play major roles in ensuring that revenue generation is increased systematically and significantly.
c. Economic Diversification and Empowerment:
32. In 2019, the focus will be on diversifying the economy by investing heavily in the creative economy, agriculture, technology and tourism. This will ensure that jobs are created for the teeming youths of Anambra State. We also intend to intervene in the areas of job creation through youth empowerment and skill acquisition in partnership with the private sector. This will assist in improving the means of livelihood for the poor and vulnerable.
d. Strategic Collaborations:
33. This administration has developed and maintained strong ties with Federal MDAs and key development partners (such as the World Bank, European Union and the United Nations System, etc.) to jointly intervene in Social Investments, Works & Infrastructure, Education, Healthcare and Environment sectors of our economy.
These collaborations have over the years supported the implementation of people-oriented programs in line with the state development agenda.
To ensure the sustainability of these collaborations, we aligned the work plans of our development partners to our annual budget.
e. Public-Private-Partnerships:



And finally, we hope to sustain the drive by strengthening and refocusing our investment climate by channelling significant resources towards providing infrastructures and reducing the bureaucratic bottlenecks involved in starting and running businesses in Anambra State.
Bases and Assumptions for the Draft FY 2019 Budget Estimate:
34. We adopted the following macroeconomic assumptions for the Budget estimates:
35. A Crude oil price benchmark of US$60/bbl and an average daily production of 1.9m barrels average against FG production benchmark of 2.3m barrels per day, translating to a projected annual FAAC of N40.0bn as against the 2018 figure of N29.7bn.
36. Value Added Tax revenue projection is maintained at N12.0bn annually in line with the 2018 figure of N9.1bn.
37. Internally Generated Revenues are projected at N3.0bn monthly (N36.0bn annually) compared with the current actual run rate of N1.3bn monthly (N15.6bn annually).
To achieve this, we expect to aggressively sustain the growth of our tax database, optimizing our IGR windows through continuous enumeration and automation and strengthening our enforcement initiatives in the State.



38. Capital Receipts (including grants, counterpart funds, aid and concessionary funding) is estimated at N19.8bn
39. The sum of N26bn is estimated from reimbursements from the Federal Government for works done on Federal roads out of the 43.8bn owed to the State;
40. Personnel costs are estimated at N1.66bn monthly (N20.0bn for the year). This figure will accommodate new hires into the civil service such as the replacement of retired teachers, promotions, appointments and a projected salary increment;
41. Total Overheads are estimated at N2.08bn monthly (N25.0bn for the year); while Social Benefits and Contributions including (Pensions, Gratuities and group life insurance) are projected at N1.25bn monthly (N15.05bn); These increases are to accommodate new hires, staff retirement and increased subventions to key ministries, departments and agencies;
42. We have provided for N14bn in domestic debt financing. This is comprising of single-digit concessionary program lending for interventions in Agriculture, Industrialization, Trade, Commerce and Youth Empowerment.
FY2019 Budget Envelope



43. Madam Speaker and Honourable members, for 2019 we are proposing a budget size of N157.1bn, with a spending ratio of N65.33bn for Recurrent Expenditure and N91.8bn on Capital Expenditure to drive our policy thrusts of sustaining economic growth and youth empowerment.
This budget seeks to sustain our previous performance and ensure that Anambra State continues to maintain its status as a hub for business and a destination for new investments.
Highlights of our Sectoral Capital Plans:
Road Works & Infrastructure
44. Our continued intervention on Roads and Bridges, which remains a key focus of this administration, is estimated at N22.4bn of which the construction of new roads will gulp N20.9bn and the sum of N1.5bn for Anambra State Road Maintenance Agency (ARMA) to support on-going rehabilitation of roads and construction and of rural/community roads. In 2019 we shall continue the installation of traffic lights at strategic road intersections to improve traffic flow in the state.
Agriculture and Related Sectors
45. In agriculture, we aim to improve on the success we have achieved in the last five (5) years. We intend to develop additional 2,000 hectares of land across the three senatorial zones under the Community Agriculture Land Development Project. A substantial amount has been allocated to the procurement of agro-inputs to support our farmers. My administration will increase support to businesses engaged in export-driven large scale agro-allied investments with a focus on creating jobs and alleviating poverty.
46. We shall continue our collaboration with development partners (Central Bank of Nigeria, FADAMA and IFAD, RAAMP) to support increased farming activities and access to farmlands to ensure that our programmes and policies are implemented.



47. Finally, we shall sustain our progress by implementing a number of youth orientated empowerment schemes such as the Youth Empowerment Scheme for fish farming, animal husbandry and crop production..
Education
48. Our commitment to delivering a globally competitive education requires a proper funding of the educational sector. Thus, we are projecting a total capital expenditure of N11.9bn for Education across the following areas:
49. N1.5bn for the World Bank Assisted State Education Programme & Intervention Project (SEPIP); while over N3.0bn has been allocated to infrastructure and capacity improvement in state-owned universities/colleges and polytechnics in the State.
50. Madam Speaker it may interest you to know that during my recent trip to Boston, we held serious deliberations with the African Studies Library of Boston University on the possibilities of forging a partnership with Chukwuemeka Odumegwu Ojukwu University. In the coming year, we will be partnering with the Cambridge Innovation Centre in the Massachusetts Institute of Technology to set up a world-class innovation hub in Anambra State. This investment is expected to train, incubate and empower over 1,000 youths annually.
Youth Empowerment & Creative Economy



51. In the 2019 Fiscal Year, Youth Empowerment will be a key focus of my administration.
This will increase employment opportunities for our youths and ensure the socio-economic growth of the State.
The main driver towards achieving this is the Youth Entrepreneurship & Empowerment Programme where we have allocated N4bn to empower up to 10,000 youths through vocational, agricultural and artisan training programmes as well as the provision of interest-free start-up capital to commence their businesses. There is also an additional N100 million earmarked for the film village to facilitate job creation in the creative sector.
Health
52. My administration understands that health is the greatest wealth, and hence will continue to embark on numerous strategic developmental initiatives aimed at improving the quality of healthcare services for Ndi Anambra. An additional N2bn has been earmarked to boost the Anambra State Health Insurance Scheme to ensure adequate implementation of the programme state-wide, specifically providing cover for the downtrodden and most vulnerable. We shall also utilize over N1bn in the Construction & Equipping of the Anambra State University Teaching Hospital and N2bn in the rehabilitation and re-equipment of general hospitals respectively. We have budgeted N9bn to achieve this and other strategic interventions in Health.
Small & Medium Enterprises Development
53. Consolidating on the funding success of 2018 where over 10,000 direct and indirect jobs were created, we have allocated the sum of N500m to the Micro Small & Medium
Enterprise Funding Programmes to be implemented through the Anambra State Small Business Agency (ASBA) for 2019. We have also earmarked funds to kickstart the development of a modern all-inclusive SME Industrial Park in the State.
Water Resources and Public Utilities



54. Following the ongoing works at the Onitsha Water Scheme which will ensure that over 5,000 households have access to pipe-borne water, we have allocated N150m to the New Greater Onitsha Water Scheme. We shall also continue to invest heavily in the development of the greater Awka Water Development Scheme as well as the Nnewi Water Development Scheme. Nonetheless, the Rural Water Rehabilitation Scheme across the State will continue to receive a great amount of allocation to ensure availability of clean potable water in our rural areas and improved sanitary conditions. Our achievements in the “Light-Up Anambra Program” and other Rural Electrification Schemes shall also be sustained as it has been effective in tackling insecurity as well as creating a “Night-Life Economy”. To achieve this and more we are allocating the sum of N4.8bn.
Community Social Development Program



55. It’s no longer news that the “N20 Million Community-Choose-Your-Own-Project” initiative has had such a tremendous impact that other States have begun to replicate this Programme. Through this novel project, we have provided Ndi Anambra with a sense of belonging as it continues to positively impact all our 181 communities in the State, increasing economic activity across the nooks and crannies in the State as well as creating jobs for the youth and unemployed. We shall take this Programme to the next level in the New Year. We have budgeted N2.8bn for the 3rd Phase of community development projects. We have also set up the Community Social Development Agency with support from the World Bank to improve infrastructural development across poor and vulnerable communities.



56. Madam Speaker and Hon Lawmakers, this Budget seeks to provide a new phase of development for Anambra State. I am therefore optimistic that it will be given a speedy consideration and passage to ensure a sustained and steady advancement of our dear state. Thank you.Chief Willie Obiano
Governor, Anambra State.
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