ADDRESS BY HIS EXCELLENCY, SENATOR DOUYE DIRI, GOVERNOR OF BAYELSA STATE, AT THE PRESENTATION OF THE BUDGET OF SUSTAINABLE GROWTH 2022 TO THE STATE HOUSE OF ASSEMBLY ON WEDNESDAY, 20TH OCTOBER, 2021

ADDRESS BY HIS EXCELLENCY, SENATOR DOUYE DIRI, GOVERNOR OF BAYELSA STATE, AT THE PRESENTATION OF THE BUDGET OF SUSTAINABLE GROWTH 2022 TO THE STATE HOUSE OF ASSEMBLY ON WEDNESDAY, 20TH OCTOBER, 2021

PROTOCOL…

It is my honour and pleasure to bring before this august House the Bayelsa State Appropriation Bill for the year 2022.

Let me preface my presentation by acknowledging with profound gratitude the Most High God for His loving-kindness and tender mercies, which has continued to preserve us.

Mr. Speaker, as you recall, the 1st of October this year marked the 25th anniversary of the creation of Bayelsa State.

I take this moment to again salute the courage of our founding fathers and to without, equivocation, reiterate that their vision for a prosperous Ijaw nation, that will be the Glory of All Lands, is on course under my stewardship.

For this reason, a well-thought-out financial plan, which captures those aspirations, is of utmost importance to this Government of Prosperity. We will continue to allocate resources wisely to uplift the underprivileged in our society, construct roads, upgrade health and educational facilities, ensure economic stability and generally make interventions that will improve the overall standard of living of our people.

In this regard, I wish to commend your efforts in approving expeditiously the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper. 

It is my confidence that you will continue to partner with the Executive arm by ensuring that deliberations on this 2022 Budget estimates are completed in record time so that the Appropriation Law can effectively start from next year January.

In spite of the several difficulties that constrained the implementation of the current Year 2021 “Budget of Growth,” our determination to succeed has always been fervent. 

Consequently, we were able to realise major achievements and implemented cardinal programmes and projects that formed the bedrock of the 2021 Budget.

Mr. Speaker and Honourable Members, may I crave your indulgence to read out some of the key achievements in the ongoing 2021 Budget of Growth.

PERFORMANCE OF THE 2021 BUDGET

The 2021 Budget of Growth was based on a benchmark oil price of 38 US Dollars Per Barrel, oil production capacity of 1.8 Million barrels per day and exchange rate of 379 Naira to the US Dollar.

In accordance with the Fiscal Framework, total projected revenue to fund the Budget expenditure was Three Hundred and Twenty-Nine Billion, Twenty-Nine Million, Six Hundred and Sixty-Nine Thousand Naira Only (N329,029,669,000.00).

There were revenue shortages from the Federal and other projected sources due to drop in oil prices. Actual revenues accruing to the State as of July 2021, as against the projected revenue, were as follows:

S/N

Source of

Revenue - 2021 Budget

N                                 Bn

Prorated Jan-June

2021

N                                  Bn

Actual Receipts Jan-June

2021

N                                  Bn

Variance Against Half Year Budget

N                                   Bn

% Half Year Budget

N                                   Bn

1. Opening Balance 21.56

10.78

10.78

Nil

100

2. Statutory Allocation        

                                 40.70

20.35

24.04

3.69

118.13

3. 13% Derivation 102.00

51

54.21

3.21

106.29

4. VAT                      15

7.5

10.25

2.75

136.67

5. Excess Crude  57.26

28.36

7.79

(20.84)

(27.21)

6. Capital Receipts 30.71

15.36

15.42

9.94

60.80

7. IGR                         25

12.50

6.56

5.94

52.48

8. Other Sources    16.8

8.40

8.4

Nil

100

Total                    329.03

164.52

137.45

(27.09)

83.55

In summary, the half year projected revenue was 164.52 Billion Naira. However, the actual revenue at this time was 137.45 Billion Naira, which is a shortfall of 16 per cent.

Notwithstanding this shortfall in our expected Revenue inflows and the rise of our internal expenditures, we gave approval to augment the payment of new minimum wage to the Local Government workforce, our Primary School Teachers and cleared the minimum wage arrears.

Mr. Speaker and Honourable Members, our half year appraisal of the 2021 Budget performance in critical sectors of the economy shows a Government with the passion, determination and political will to develop our State and bring about a shared Prosperity to our people. 

On a positive note, analysed objective indicators of our performance in critical sectors show that approvals, financial releases and milestones on projects surpassed our half year projections.

 

The 2021 Budget of Growth, Mr. Speaker and Honourable Members, as you may be aware, was framed to give the State a positive outlook and drive it to a genuine path of Prosperity after the 2020 COVID-19 pandemic. 

More than 60% of the capital expenditure was allocated to sectors that drive investment, economic growth, improved infrastructure, youth and women empowerment. This was achieved through support to trade, entrepreneurial and agricultural activities and sustainable policy formulation and implementation on ICT.

The Education Sector of the State is enjoying robust funding, infrastructure upgrade and improved policy implementation. 

We have put machineries in place to establish Vocational Schools and Technical Skill Training Centres to aid the training of our youths and women in skill-sets that are of high demand to make them employable.

Almost all the programmes in our state owned tertiary institutions have been fully accredited. 

In partnership with the Federal Government we have embarked on massive rehabilitation of school facilities in primary and post primary schools across all our Local Government Areas.

It is worthy to note that six new model schools have been approved and building is almost completed to meet the challenge of our increasing school enrolment.

In collaboration with the Central Bank of Nigeria, we cleared, allocated land and provided seedlings to 3,500 farmers in the eight Local Government Areas.

On the 30th of June, we signed a Memorandum of Understanding with a European consortium, Africa Atlantic Gulf of Guinea Fisheries, to train 2,500 Bayelsans and generate 4,000 jobs as well as set up a boat building yard and fish processing plant of over 20 thousand metric tonnes capacity.

It may interest you to know, Mr. Speaker, that as of 30th June, a total sum of 36.01 Billion Naira representing 133.37% of the half Year allocation of 27 Billion Naira to the Ministry of Works and Infrastructure has actually been released and expended on important infrastructural projects. These include:

Construction of Unity Bridge in Nembe

Construction of Elebele Bridge in Ogbia

Dualization and Re-designing of the Tombia Roundabout

Installation of all-in-one Solar Street Lights on Sanni Abacha road, Melford Okilo road and other major roads within Yenagoa Metropolis

Construction of the Sagbama/Ekeremor Road

Construction of Yenagoa–Oporoma Road

Construction of AIT–Igbogene Outer Ring Road

Construction of Amassoma to Egbedi Road

Construction of Glory Drive – just to mention a few.

Mr. Speaker, our Government facilitated the operationalisation of the Bayelsa International Airport. I am glad to report that commercial flights have since commenced. 

Let me recall, Mr. Speaker and some Members of this honourable House were aboard the maiden commercial flight.

Our respect for the media is demonstrated by the ongoing construction of the Bayelsa State Ultra-Modern Media Complex to house all our media outfits. 

We have equally started the construction of the Bayelsa Health Insurance Scheme (BHIS) building to give the scheme a befitting edifice.

Mr. Speaker, our communities are not left out in the developmental strides of our government as about 130% of the half Year budgetary provision to the Ministry of Local Government, Chieftaincy Affairs and Community Development has already been approved, released and expended to bring visible development and democratic dividends to our people at the grassroots.

Mr. Speaker, our Sports Men and Women made us proud as their performances justified the provisions for the 2021 Fiscal Year. Our State came third, for the first time, at the National Sports Festival. Our darling football teams, Bayelsa United and Bayelsa Queens won the AITEO FA Cups, thereby creating a new record of the same State winning both the Male and Female category of the competition. Their outstanding performances are well appreciated.

We have consistently met our debt servicing obligations and we are also up to date on the payment of staff salaries, statutory transfers and running costs. As of 31st August, a total of Fifty-Two Billion, Five Hundred and Sixteen Million, Nine Hundred and Seven Thousand, Nine and Three Naira, Fifty-Seven Kobo (N52,516,907,903.57) had been released for Capital Expenditure.

While aggressively implementing this budget, we have kept faith with our transparency initiatives and sustained the operational efficiencies of Government Parastatals, working hand in hand with other arms of government to improve revenue generation and accountability. We will not relent in taking feedbacks from our people through the People’s Citizen Budget Sessions in line with global best practices and ensure the formation of citizen-driven budgets that meet our collective aspirations.

Mr. Speaker, our Prosperity Government is also formulating a 30-year long-term development plan for the State. This plan will set out our short-term targets and benchmarks to dovetail into our medium and long-term goals.

Mr. Speaker and Honourable Members, may I now proceed with a summary of the 2022 Appropriation Bill tagged “BUDGET OF SUSTAINABLE GROWTH.”

KEY PRIORITIES OF THE BUDGET OF SUSTAINABLE GROWTH 2022

Mr. Speaker, in formulating this budget, we undertook exhaustive consultations with our people. 

We predicated these estimates consistent with parameters in the State’s 2022-2024 Medium Term Expenditure Framework (MTEF) and Strategy Paper (SP), whose key assumptions are as follows:

Crude Oil production per day at 1.88 million barrels (inclusive of condensates of 300,000 to 400,000 barrels per day)

Oil price projections of 57 US Dollars to a barrel.

Exchange rate of 410.15 Naira to One US Dollar.

The allocations to MDAs in this 2022 Budget were guided strictly by our vision of prosperity and desire for sustainable growth in line with the MTEF as approved by this House, which include:

Building critical infrastructure

Sustained Urban Renewal and Green Environment

Wealth creation and job opportunities

Building human capital

Strengthening the Agro-Business value chain

Improved Security

Diversifying the economy.

Mr. Speaker and Honourable Members, I am pleased therefore to present to this House and to the People of our great State this proposal of Three Hundred and Ten Billion, Seven Hundred and Seventeen Million, Six Hundred and Eight Thousand, Three Hundred and Fifty-Three Naira (N310,717,608,353.00) only.

REVENUE ESTIMATES

Our projected revenue for the 2022 fiscal year is as follows:

Opening Balance---------------------        1.902 billion naira

Statutory Allocation-----------------         43.034 billion naira

VAT----------------------------------16.233 billion naira

13% Derivation-----------------------        117.374 billion naira 

Excess Crude--------------------------        43.575 billion naira

IGR----------------------------------20 billion naira

SIFTAS----------------------------8 billion naira

NG-CARES-----------------------4 billion naira 

RAAMP----------------------------4 billion naira 

SDGs-------------------------------5 billion naira

SUBEB-----------------------------3.7 billion naira

LOANS-----------------------------43.575 billion naira

Grand Total-------------------        310,717,608,353.00 Naira

(Three Hundred and Ten Billion, Seven Hundred and Seventeen Million, Six Hundred and Eight Thousand, Three Hundred and Fifty-Three Naira Only).

We intend to explore other sources of funding apart from our projected internally generated revenues and expected Federal Allocations. We intend to borrow the sum of 45.8 Billion Naira only, which will form about 14.43% of the total Budget estimates. 

The expected Aids and Grants from our development partners both at national and international level is estimated at 24.7 Billion Naira, which is approximately 8% of the total annual Budget estimate. These Aids and Grants, Mr. Speaker, are products of our fiscal discipline, transparency and accountability.

PLANNED EXPENDITURE

A total expenditure of 310.7 Billion Naira is proposed for the 2022 Fiscal Year.

The proposed expenditure comprises:

Personnel Cost is estimated at Sixty-Seven Billion, Four Hundred and Thirteen Million, Five Hundred and Forty-Nine Thousand, Three Hundred and Thirty-Five Naira (N67,413,549,335.00) only, representing 21.69% of the total projected expenditure.

Running Cost is estimated at Seventy Billion, Five Hundred and Sixty-Eight Million, Seven Hundred and Ninety-One Thousand, Five Hundred Naira (N70,568,791,500.00) only, ⁰representing 22.71% of the total budget estimate for 2022.

Consolidated Revenue Fund Charges, Pension and Gratuity, G32 Council Areas, Federal Deductions, Debt Repayment etc. is estimated at Sixty-One Billion, Seven Hundred and Fifty-Five Million, Two Hundred and Sixty-Seven Thousand, Five Hundred and Eighteen Naira (N61,755,267,518.00), which represents about 19.88% of the total budget.

Capital expenditure is One Hundred and Ten Billion, Nine Hundred and Eighty Million Naira (N110,980,000,000.00) only, representing 35.72% of the budget.

The Estimate for Capital Expenditure for some MDAs are as follows:

S/N.

MDAs

2022

N

1.

Ministry of Education

4,000,000,000.00

2.

Ministry of Agriculture

12,000,000,000.00

3.

Ministry of Works & Infrastructure

51,000,000,000.00

4.

Ministry of Information, Strategy & Orientation

1,500,000,000.00

5.

Ministry of Special Projects

1,000,000,000.00

6.

Ministry of Trade, Industry & Investment

500,000,000.00

7.

Ministry of Communication, Science and Technology

500,000,000.00

8.

Ministry of Transport

1,500,000,000.00

9.

Ministry of Water Resources

600,000,000.00

10.

Ministry of Health

4,000,000,000.00

11.

Ministry of Culture and Tourism Development

500,000,000.00

12.

Ministry of ljaw National Affairs

1,000,000,000.00

13.

Ministry of Finance

3,000,000,000.00

14.

Ministry of Power

1,500,000,000.00

15.

Ministry of Budget and Economic Planning

500,000,000.00

16.

Ministry of Lands, Housing & Rural Development

1,000,000,000.00

17.

Ministry of Youth and Sports

500,000,000.00

We expect the fiscal operations of the State to result in a deficit of 45.4 Billion Naira. This represents 14.4% of the total budgets, indicating a manageable size of revenue and it is projected to be funded by loans.

Mr. Speaker and Honourable Members, our projection for this year is slightly lower than the 2021 Budget by Nineteen Billion Naira (N 19,000,000,000.00). The outgoing 2021 Budget is 329.029 Billion Naira, indicating a reduction of about 3.54%.

In concluding, Mr. Speaker, I will not stop thanking God for His infinite mercies and the good people of Bayelsa State for their continuous support, patience, sacrifices and the goodwill they have extended to our Government. We are determined to continue to build confidence in our people by being proactive in the formulation and implementation of our policies.

Mr. Speaker, it has been said that “It does not really matter how fast you are going if you are heading in the wrong direction.” It is thus my conviction that this Budget of Sustainable Growth 2022 as proposed will steer us in the right direction by prudently allocating resources.

I like to thank the leadership and all Honourable Members of this House for your generous attention. I appreciate your unwavering support and look forward to your careful consideration and expeditious passage of this very important bill. 

God bless Bayelsa State

God bless the Federal Republic of Nigeria