Kaduna State 2010 Proposed Budget

Address Of His Excellency Arc Mohammed Namadi Sambo, Fnia,The Executive Governor Of Kaduna State
At The Presentation Of The 2009 Budget To The
Honourable Members Of The State House Of Assembly 
On Tuesday 29th  December 2009.

Mr Speaker,
Hon Members,

It is with immense pleasure that I appear before you today to fulfill one of the requirements of good governance as enshrined in Section 121 of the 1999 Constitution. Let me refresh you Mr Speaker and honourable Members that during our previous appropriations, they had formed the basis for expanded stakeholders’ participation in the budgeting process. Needless for me to remind you that as true representatives of the people, their interest is uppermost in your minds and you had always championed their interest by ensuring that such people-oriented projects and programmes are fully integrated and reflected in the approved appropriation which we had executed in the previous fiscal years.

Mr. Speaker, I wish to express our gratitude for the diligence and efficiency with which this Honourable House had discharged its functions over the years, including the pursuit of your Oversight Functions. You will concur that there has not been any executive interference in all that you did during the years under review. It is with this in mind that we are short of words to express our heartfelt appreciation for your kind support, understanding and cooperation extended to the Executive Arm of Government to enable it discharge its statutory functions.

Having said this, we shall continue to mutually cooperate for the betterment of our society such that our efforts shall remain indelible in the annals of history.

REVIEW OF THE 2009 BUDGET

This Honourable House will recall that in the previous year, an estimate of N153,695,023,705 was appropriated which comprised of N34,938,352,725 and N118,756,670,980 as Recurrent and Capital estimates respectively.

The Budget size was revised to a Recurrent Expenditure of N36,738,352,721 and Capital Expenditure of N116,956,670,980 allowing for proper flow of implementation. Subsequently, two (2) Capital Supplementary Appropriations were also approved, which include:

      i.        The Federal Government Grant on the Hosting Rights of the FIFA Under-17 World Cup to which Kaduna State won a sub-seat for the upgrading of facilities at both the main bowl and for training centers within the capital city amounting to N250million

     ii.        The Islamic Development Bank (IDB) N2.5billion Interest-free loan for the construction and equipping of four new Science Secondary schools in Koreye (Jama’a) in Sabon-Gari Local Government, Rigachikun In Igabi Local Government, Manchok in Kaura Local Government and the New Millennium City hosting the last one.

 

CAPITAL EXPENDITURE

In pursuit of our objective to ensure that education is catapulted to an enviable level in the State, we had declared a state-of-emergency in that sector and had consistently appropriated 27% of our Budget on Education. With these huge investments in that sector, we have constructed, renovated, furnished and supplied equipment to primary, secondary and tertiary institutions. We provided portable water supply to our various schools and institutions. The infrastructure provided also includes classrooms, lecture theatres, laboratories, libraries and ICT centres. We have distributed free textbooks and uniforms in line with our Free Education policy. Similarly, we have produced Question & Answers textbooks to prepare final year students for their SSCE and NECO examinations respectively. We had also paid examination fees for the candidates including students of tertiary institutions in Law, Health related courses, National College of Aviation Technology (NCAT), Kaduna State University (KASU), etc. including augmenting school fees at other institutions of higher learning across the State. During our tour of projects executed for commissioning in the State, we visited the Kaduna State University and commissioned a sizeable number of projects including 13 new laboratories, lecture halls and theatres, libraries, Faculty of Medicine, Computer Centres, just to mention a few. Other institutions that projects were commissioned include College of Education Gidan-Waya and Nuhu Bamalli Polytechnic, Zaria. The Language Laboratory of College of Education Gidan-Waya is exceptional and a significant edifice worthy of being mentioned.

 

TRANSPORT

We have almost completed the road projects that were inherited. Similarly, new road projects have been awarded which include the extension of the Kofar-Doka-Babban Dodo-Kofar Kuyambana road, the Tum-Madakiya road and other joint State and Local Government projects spread all over the State worth N5,324,973,675.01

The total amount involved in all road constructions, including bridges, is in the total sum of N7,128,651,294.92. A fourth bridge across River Kaduna to link Kaduna North with Kaduna South is currently in the pipeline. It is aimed at eliminating the traffic congestion connecting the two local government areas.

The Railway sub-sector, though an avenue to cushion the hardships encountered by our people occasioned by the economic realities of the times, has increased the spending capacity of our citizens by over N250million on transporting 800 thousand people to date. It has also reduced drastically the cost of market goods, especially the perishable ones, in view of the low price of fares and the mass utilisation by our people. Therefore, to ensure continuity and regularity in service, a total sum of N110million was expended for rehabilitation, maintenance and management of the Railway Service in the State.

In our effort to develop the Inland Dry Port, which will further boost our socio-economic status, we had since worked out a very favourable and viable partnership arrangement with Inland Containers Nig. Ltd (ICNL) for the re-development of Kaduna Inland Dry Port. It is pertinent to let you know that recently we received the officials of the Nigerian Shippers Council who have confirmed to us that very soon this arrangement will come to fruition as it will be gazetted for immediate take-off. This programme intends to maintain the status of Kaduna as the hub of economic activities in the North where goods can be imported and exported.

HEALTH

There is a tremendous progress of work on the 300-bed Specialist Hospital physical development. Our request for equipment leasing from the Islamic Development Bank has received their blessings and the sum of $45million has been approved for the provision of state-of-the-art equipment and other necessary facilities at the hospital, which is due for completion at the first quarter of 2011. The sum of N1.38billion has so far been expended towards the realisation of the project. This project, we believe on completion, will arrest the capital flight of our citizens travelling abroad seeking for a good health medical services. Similarly, the sum of over N400million has been expended for the construction and rehabilitation of hospitals and Primary Healthcare Centres (PHCs) across the State. The Free Maternal and Child Welfare programme for women and children under five (5) years of age has already benefitted over 3 million people through our 28 hospitals and 115 Primary Healthcare Centers at the cost of about N2.8billion Naira only.

 

WATER SUPPLY

Water sustains life is an old adage and one of our topmost priority is the provision of portable water supply to our citizens across the State. We have therefore embarked on both Urban and Rural water supply schemes in the year under review of which some have been completed while others are still on-going. These projects include:

(i)            The 150mld Zaria Regional Water Supply project which is currently at 30% completion;

(ii)           The rehabilitation of the Kaduna Water Treatment Plant which is almost at 90% completion;

(iii)          The Zonkwa Regional Water Supply scheme at Manchok which is to be completed in March 2010, Kafanchan/Kagoro water supply scheme which has reached advanced stage of completion. The Saminaka Water Supply Scheme which is planned to be completed very soon;

(iv)          Under Rural Water Supply Programme 4000  hand-pumps and motorised boreholes have been completed while 1,400 existing boreholes have been rehabilitated, a total of 63 Solar-powered boreholes were awarded last year and completed while an additional 7 were awarded this year bringing the total number of solar-powered boreholes to 70 and the contract for the construction of 759 constituency boreholes have been awarded and work is currently in good progress.

 

 

YOUTH & SPORTS

This is an area we have recorded monumental success which has been acknowledged the world over. The 16th National Sports Festival tagged “KADA 2009” was not only successful in the organisational activities and efforts of providing the necessary world class sporting facilities but was one of the best performances by the State contingent to the Games. For the first time ever, the State emerged 5th on the medals table signifying hope for the future of sports and its development. This feat is a booster to our gradual return to our enviable position as the sporting hub of the Nation. Similar massive investments were made in hosting the FIFA Under-17 World Cup at the Kaduna sub-seat by the Government. Currently, Murtala Mohammed Square has a conglomeration of sporting edifices which includes the Umaru Musa Yar’adua multi-purpose Hall and Sporting Complex, the Olympic size swimming pool and a list of other sporting facilities of international standard.

 

 

AGRICULTURE

The Agricultural Sector received a reasonable share with an expenditure of N8.26billion expended on varied agricultural development programmes. Our efforts at providing the necessary support to our farmers was further re-enforced by our massive supply and distribution of fifty thousand metric tonnes (50,000mt) of fertilizer at the cost of N5.48billion, the rehabilitation and construction of Strategic Grains Storage Facility are also further boosted by the allocation of the sum of N168million while animal traction got N189million. We purchased agro-chemicals worth N15million and improved seedlings worth N32million for distribution to our farmers. We also awarded contracts for the supply of small irrigation pumps and spraying equipment worth N549million for distribution at subsidized rates to our dry-season farmers.  On the same vein, Grains worth N13.5million was procured and stored in our Strategic Grain Reserve Scheme. Bee keeping which is fast becoming one of our new agricultural initiatives received a boost when the sum of N4million was earmarked and expended in its promotion. Our contribution to National Agricultural Insurance Scheme (NAIC) was honoured when we paid the premium of N3million while Kaduna Agricultural Development Project (KADP) programmes gulped a whooping sum of N1billlion. Contracts were also awarded for the construction of Hunkuyi, Kuzuntu and Kufana Earth Dams worth N1.36billion. Consultants were engaged for the production of designs and documentations for the construction of three (3) Multi-Purpose Dams that will provide about seventy thousand (70,000) Hectres of irrigation land, 70mw of Hydro power and raw water supply to Kaduna Metropolis up to year 2035.

 

RURAL & COMMUNITY DEVELOPMENT

Power Generation efforts have been intensified in the year under review. Apart from wholesale efforts of the State to wheel 34mw of Power from the Gurara Dam, other collaborative efforts at Public Private Partnership (PPP) arrangements have been worked out with the China Machinery & Equipment Company (CMEC) and the Kaduna State Agency for Power Generation Company (KAPSCO) for the generation of 84mw of Thermal Power. All these are at advance stage of execution and are meant for the revival of our ailing industries.

Furthermore, other smaller rural electrification projects worth about N1.3billion were executed in the year under review.  Distribution of 250 transformers and solar projects for 12 villages were commissioned. 

The revival of the textile industries, which we pursued vigorously at inception, has finally gotten the blessing of Mr President who has graciously awarded contract for the construction of a 215mw Thermal Power plant for the revival of textile industries in the State. Only recently, the high-powered committee led by the Chief Economic Adviser to Mr. President and the Federal Minister of Finance, visited the State to inspect the textiles preparatory to the eventual take-off of the scheme. Similarly, the sum of N100billion is now ready for Kaduna textile industries revitalisation exercise.

RURAL ROADS

In our determination to provide access roads to our rural farmers to transport their farm produce to available markets with ease, we have expended the sum of N1.371billion for the construction of rural feeder roads. The World Bank Rural Mobility Project has commenced and will provide 450km of rural roads in the State.

 

POVERTY ALLEVIATION

The endemic nature of poverty amongst our people precipitated our proactive measures to address the menace of the scourge. Accordingly, calculative measures were employed to ease the situation by taking an inventory of all unemployed youth and those that require assistance in accessing financing to establish various businesses of their choice. We now have, in our Biometric Data, 800,000 people that require our support.

 

Micro-Credit Transportation:- in this step, a total of 100 buses were purchased at the cost of N146,662,000 and distributed to members of the NURTW, NARTO and RTEAN as the beneficiaries of the scheme while the Kaduna City Taxi initiative also received a boost as 60 Toyota Saloon and 40 Volkswagen Golf Cars were purchased in the year under review and distributed to our unemployed youths and the Okada riders at the cost of N88,645,000.00. The Kaduna State Leasing Company has also commenced operation with 50 new Peugeot cars being leased to individuals or organisations interested in taxi business.

 

Farmers Empowerment Programme:- the total sum of N100million was disbursed as loans to 230 cooperative societies with five thousand seven hundred and ninety five (5795) members in the 23 local government areas of the State. 216 tractors and equipments were also distributed to the co-operatives.

 

Waste-to-Wealth Programme:- we are determined to recycle waste and we have sought the services of a reputable and reliable contractor to embark on the programme. The sum of N151,200,000 was approved for the establishment of 12 lines of Waste-to-Wealth plastic recycling and animal feed processing plants.

 

Donations of Crash Helmets to Okada Riders:- based on the safety demands of our citizens and in order to fully comply with the Federal Government’s Crash Helmets Compulsory Programme and in view of the low liquidity position of our          Okada drivers, we have procured 1000 crass helmets at the cost of N5million and freely distributed to them across the State.

 

Distribution of Poverty Alleviation Materials: our poverty alleviation initiative was predicated on our desire to ensure that beneficiaries are mobilised to be self-employed and will own the necessary tools for productivity and drive away poverty amongst our people. The ceremony for the commencement of the disbursements in this category was recently held at Murtala Square which attracted people from far and wide. Cash loan disbursements to beneficiaries amounted to N34.5million while material and other facilities disbursements amounted to N345.5million. This includes but not limited to vulcanising equipment, hair dressing, sewing machines as well as treated mosquito nets and hospital equipments.

 

Mr Speaker, Hon Members, we place on record our profound gratitude and appreciation for the maximum support and understanding we have been enjoying from this Honourable House. Without this support and cordiality, these achievements will certainly have been a mirage. I must seize this opportunity, therefore, to also assure you of our continued cooperation to this Honourable House in the interest of our dear State.

 

 

 

2010 BUDGET

The 2009 Budget was tagged “Budget of Consolidation & Stabilisation” because of the relative progress which the “People’s Budget” of 2008 had made in impacting positively on the lives of the people through the people-oriented programmes embarked upon and satisfactorily executed in the year under review. It was principally viewed as a Performance-Based Budget as it lays emphasis on the performance indices, a system that seeks to address the key sectors the budget was tailored to achieve. Therefore, in the spirit of ensuring that these successes were not derailed from, the 2009 Budget derives its name as a means of consolidating and stabilizing the “People’s Budget”

Accordingly, the 2010 Budget is tagged “A Budget of Empowerment and Progress” in our spirit of ensuring the continued drive to eradicate poverty and ensure optimum realisation of our set targets in those areas outlined earlier, we are committed to ensuring that our philosophy of socio-economic reforms are attained within the available resources at our disposal. We shall ensure the continued empowerment of our people while safely executing projects and programmes to ensure that we make appreciable progress in attaining our targeted objectives of driving away poverty amongst our people.

 

In putting together the 2010 Budget, a lot of considerations were made with regards to resources accruing to the State. This includes funds from the Federation Accounts or Statutory Allocations, Internally Generated Revenue and Other Sources.

The situation of Statutory Revenue may not be the same as last year because the crude oil benchmark for 2010 is far above that of the year 2009. In furtherance to our efforts at boosting our Internally Generated Revenue from the great potentials that abound in the State, the State revenue board has doubled their efforts on revenue generation with the assistance of the World Bank and DFID which will definitely minimise revenue losses. As usual, Government will continue to support these agencies towards attaining optimal performance.

 

a)    RECURRENT REVENUE

I)             Statutory Allocations

As we are aware, receipts from statutory sources are subject to fluctuations in the international market for crude oil prices. Inspite of this, we will strive to ensure that our philosophy of socio economic empowerment to our people which remains the main trust of this administration is maintained within the limited available resources. Accordingly, we have made a realistic projection of N42,000,000 to be collected from the Statutory Allocation.

II)           Excess Crude

The sum of N10,000,000,000.00 is expected from the Excess Crude Account

III)         Internally Generated Revenue

Our expected Internally Generated Revenue (IGR) is put at N12,430,310,000

 

 

B)           CAPITAL RECEIPT

In the year 2010, Government envisaged its Capital Receipt to be more realistic in order to deliver its programmes and projects as follows:-

CAPITAL

2010 DRAFT ESTIMATES

Value Added Tax (VAT):

6,000,000,000

 

Transfer from Recurrent Budget Surplus:

 

24,388,186,458

 

Privatization:

678,000,000

 

Funds:

1,271,700,000

 

Proceed from sale of Fertilizer:

970,140,180

 

Ecological Funds:

1,000,000,000

 

Internal Loans:

39,914,000,000

 

External Loans:

30,646,145,000

 

External Grants:

3,278,270,000

 

Internal Grants:

17,960,118,545

 

Other Sources of Revenues:

24,388,186,458

 

Total Capital Receipt:

 

 

153,994,281,405

 

 

 

C)        Recurrent Expenditure

 

 

Consolidated Revenue Fund Charges:

 

3,406,000,000

 

Personnel Cost:

17,741,126,666

 

Overhead Cost:

19,286,449,176

 

Public Debt Charges (Repayment):

1,508,548,000

 

10% to Local Government Joint Council:

 

800,000,000

 

Total Recurrent Expenditure:

42,742,123,842

 

       

D)      Capital Expenditure

Mr. Speaker, Hon Members, our proposed capital outlay for 2010 Financial Year stands at N153,994,281,458

 

HIGHLIGHTS OF 2010 BUDGET

The total Budget size envisaged for 2010 is N196,736,405,247 as estimated from the total expected Receipts of same amount. Like it was in the 2009 Approved Estimates, attention is basically going to be focused in the 2010 fiscal year on Education, Transport, Health, Power and Agriculture respectively.

 

In our effort to reduce poverty and generate employment opportunities for our people, we have set in motion, the provision of various earth-dams and irrigation projects in various locations within the State. Similarly, we have also made a Provision of 1% of our Capital Budget in this year’s estimate to support the Federal Government initiative for the establishment of Micro-Finance Banks (MFBs) in the State, the aim of which is to ensure that financial services are made available to the vast majority of the low-income earners and the poor to engage in productive activities and create jobs among others. This has become necessary in view of the fact that lack of access to financing has been identified as one of the major avenues militating against our growth and development.

We are continuing with the articulated programme on Free Medical Treatment for Pregnant Women and children under 5 years in the Health sector throughout the State. We intend to increase the number of hospitals to be covered under this programme. In addition, the construction of the 300-bed specialist hospital is in full progress and has already reached an appreciable stage of completion.

 

Some of the on-going projects in the Transport Sector have been completed. New awards were made to take care of some critical areas.

 

We have maintained the tempo on the repairs, renovation and rehabilitation of schools in the State. Coupled with this, about 4000 teachers were recruited to provide adequate, qualitative and quantitative teaching in both secondary and tertiary institutions. Other priority programmes implemented include free uniforms, textbooks and notebooks. The implementation of the TSS 27.5% new salary increase for teachers has put the teaching profession as the highest salary earner in the State.

We intend to start a pilot programme on feeding to primary school pupils including the construction of staff quarters. I must also share the joy of the recent success of our Primary School students who came first (1st) at the Presidential National School Debate held in Abuja between the 15th – 17th of this month. This is a clear testimony that our education programme is on the right track and achieving success. You will recall that in 2008 our students came second (2nd) at the NECO examination National ranking

 

The development initiatives taking place in Kaduna State has attracted the attention of our development partners within and outside the State. Private sector establishments have indicated interest to partner with the State in promoting non-oil sector ventures based on the high potentials that abound therein. The International Community has also expressed enthusiasm to enter into partnership arrangements with the State to further support our poverty alleviation programmes, social sector and solid minerals developments. Pursuant to this, the State has already embarked on new projects with the development partners in the following areas:

(i)              Governance and Capacity Building Project- a World Bank sponsored initiative which has already commenced work;

(ii)             Kaduna State - Japan Initiative for Production and Export of Ginger, Cassava, Acha and Beniseed;

(iii)            Millennium Village Project which started at Pampaida in Ikara LGA, has been scaled up to support four additional communities in Ikara Local Government Area;

(iv)            Kaduna State – Indian Initiative for Cottage Industry Development and Skills Acquisition;

(v)             Kaduna State - China Initiative for the Production, Processing and Export of Ginger, Sugarcane, Cassava, etc;

(vi)            The State and Local Government Project (SLGP) has already been mobilised in the State and had commenced its training programmes;

(vii)           The Partnership between Kaduna State and the World Bank, DFID and USAID which took off in January, 2009;

(viii)          The Partnership for the Transformation of Health Systems (PATHS) between DFID and the State has commenced effective work in the health sector. Only recently DFID supplied the State with 40 containers of drugs and hospital equipment to support the State Health Sector Programme.

These projects along with other on-going initiatives are aimed at transforming the State towards eradicating poverty and enhancing the general well-being of our people. In addition, the State is working closely with the Millennium Development Goals (MDGs) Secretariat at the Presidency to ensure that it derives full benefits from the Debt Relief Fund

 

CIVIL SERVANTS AND PENSIONERS

In continuation of our efforts to better the lot of the Civil Servants and Pensioners, adequate provision has been made from the Micro-Credit and Human Development Funds for their welfare to which they can access. Other provisions are for Housing and Car Loans. This will enable civil servants obtain their own cars and houses. Also, the sum of N150million has been earmarked to cater for Training and Development while E-Governance and State Internet Backbone has an allocation of N300million. Personnel Costs is estimated to be N17.741billion, while Pensions and Gratuities which we pay as at when due has an allocation of N3billion. These are significant increases from the previous year’s allocation.

 

The essence of the increase in all these packages is to further motivate the workforce to put up an optimum performance towards positively high yielding productivity and output. Pensioners shall continue to enjoy their retirement benefits which we pay regularly.

 

CONCLUSION

The Budget estimate for this year Mr. Speaker, Honourable Members, has addressed both the ongoing projects and the zeal with which the State is determined to complete them. Also, new projects awarded shall be dispensed with in a manner in which we shall meet your expectations and that of the electorates.

We shall continue to pursue Kaduna State of our dreams. We shall continue to pursue our welfarist programmes and projects because we believe our people deserve the best service from a government that they put in place. We are putting in place solid and needed infrastructure that include power generation, large irrigation schemes, expanded education, provision of health services and modern and effective transportation system, effective poverty eradication mechanism that will lead to the creation of an industrialised, new and prosperous Kaduna State.

Mr Speaker, Honourable Members, all the efforts we are making to ensure that we turn around the fortunes of the State will not be complete if we refuse to access development funds which are meant for developmental initiatives worldwide. The feasibility studies of the projects we are embarking upon confirm their status as viable and high-yielding projects such that they can provide adequate return on our investment. In this regard, we approached the IDB, ADB and the World Bank for Concessional Funding in order to ensure the establishment of solid infrastructure, which will create the needed enabling environment for complete poverty eradication and enhancement of the socio-economic development of the State.

Mr. Speaker, Honourable Members, may I use this opportunity to  once again thank you and the Hon Members for your support and cooperation without which we could not have achieved the lofty targets we had set for ourselves. Let me appreciate our Religious Leaders, Traditional Rulers, Politicians, NGOs, Labour Unions, Media Organisations and the good people of Kaduna State for their support and cooperation towards attaining successes we have recorded so far.

The Judiciary as a tier of Government has lived up to its expectations as the last hope of the common man. We appreciate them for the matured way they had handled all adjudications before them to the admiration of all. We urge them to maintain the tempo.

Finally, special gratitude goes to our civil servants for the maturity and understanding they have shown under difficult and enticing circumstances. Their support and cooperation has, to a large extent, contributed to the remarkable success this administration has achieved. May God protect and guide us all. Ameen

Thank you and God bless.

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