April 24, 2012
The Speaker, Honourable Members of the Bayelsa state house of assembly.
It is my honour and privilege to step into this hallowed chambers for the very first time since my inauguration as Governor of Bayelsa State on the 14th of February, 2012.
Mr.Speaker, it will be recalled that the 2012 budget hitherto presented to this house by my immediate predecessor was withdrawn in order to properly align it to our restoration mandate and vision. The people of Bayelsa State voted massively for restoration of our lost glory, as well as restoration of planned and well thought-out infrastructural development. They voted for a decisive halt to education decay in the state. Our people voted for peace,happiness and prosperity in our land. The good people of Bayelsa State
voted for massive flow of potable water and 24 hour uninterrupted supply of electricity amongst other progressive developments in the state.
Mr. Speaker, in pursuance of the covenant of good governance I have with the good people of Bayelsa State, I
began the process of wide consultations and inquiries into the various aspect of our state life. I set up a number of committees to look into various aspects of our state life. I am happy to state that the reports of the various committees have greatly enriched our understanding of the magnitude of
our assignment as a government; and the ways and means of addressing them in the short, medium and long terms. I have also reorgainsed the governance structure in the state with the creation and reorganisation of ministries and
parastatals in the state. Mr. Speaker, we now have 26 ministries to ensure we have focussed and hands on administration in the affairs and issues of the state. The revised 2012 budget is therefore a product of these far reaching consultations and studies.
I am pleased to inform you, Mr. Speaker, that my administration is now properly equipped technically,
psychologically, spiritually and therefore has the political will to frontally attack all the developmental challenges of Bayelsa State.
Our vision is to make Bayelsa State the third most developed state in Nigeria within the next four years. We have just started this great journey today as we have carried out a comprehensive review of the initiatives in the 2012 budget.
Highlights of the reviewed 2012 budget proposal.
Key Assumptions and Targets.
Mr. Speaker, the revised 2012 budget is predicated on the following key assumptions which are consistent with the parameters of the Medium Term Expenditure Framework (MTEF) of the state for the 2012-2014 period.
Crude Oil Production: 2.27mbpd
Benchmark Oil Price: $72/barrel
Exchange Rate: N155/$1
State Production Indices: 19%
% Increase in IGR: 54.8%
Total Fiscal Deficit: 3% of BYGSP
Based on these assumptions and targets, the total projected revenue for 2012 fiscal year is N211.82bn comprising of N195.88bn from Statutory Allocation, N7.09bn from Value Added Tax, N5.65bn from Internal Generated Revenue and N3.21bn from Capital Receipt; representing a 7.45 % contraction from the withdrawn estimates. This is in line
with our strong resolve to be realistic, transparent and accountable to the good people of Bayelsa State.
On the expenditure side, Mr. Speaker, total expenditure for 2012 fiscal year is estimated at N211.82bn comprising of N90.25 bn or 42.6% for recurrent expenditure made up of N36.64bn or 17.2% for personnel cost N25.46bn or 12.0% for overhead costs and N28.14bn or 13.3% for consolidated revenue fund charges. Our capital expenditure for
2012 has been estimated at N121.56bn or 57.4% of total expenditure.
Mr. Speaker, it is pertinent to state that I am happy with the present ratio of Recurrent Expenditure to Capital
Expenditure (42.6:57.4%) and I dare say that we will improve on this in our subsequent budget proposals particularly when our current efforts at reducing
recurrent expenditures begin to yield the desired fruits.
Mr. Speaker, the revised 2012 budget for the State has been christened as the Budget of Restoration. It is specially crafted to kick start the process of restoring Bayelsa State to
the much desired path of glory, peace, security and sustainable development.
PROGRAMMES AND PROJECTS OF THE REVISED
2012 BUDGET
Mr. Speaker, the key programmes and projects that will be funded by the revised 2012 budget include: Works and Transport: As I have said in various fora, we are going to hit the Atlantic Ocean from 3 flanks. Thus the construction of the three senatorial roads will receive priority attention this year. Additionally, the Yenagoa metropolis will be properly restructured with the construction of 3 ring roads.
These certainly will boost the aesthetic beauty of our capital city and enhance the efficient management of transport infrastructure in Yenagoa. Other projects in the Works and Transport sub - sector to be given priority attention include:
immediate construction of 3 additional secretariat annexes along the road safety road; dualisation of Isaac Boro Road, and the construction of Bayelsa Airport Project. A maritime academy as well as a drive established in the state to harness the huge potentials in this sub-sector. Furthermore all our liaison offices will be properly renovated to cope with the new realities as of the times. The sum of N38.3billion has therefore been allocated to the Works and
Infrastructure sub - sector.
Education:
Mr Speaker, the Education sub - sector in the state is another area that requires urgent and fundamental restructuring due to its critical contribution to our overall development. To this end, as you are quite aware, the State Government has since declared free and compulsory primary and secondary Education on the 14th Feb. 2012. Actions are in top gear to ensure flawless implementation of this scheme. Also massive infrastructural development in all our primary and secondary schools will commence soon. To compliment these efforts, the issue of training and retraining of teachers to increase their productivity will be
accorded top priority attention. To actualize this objective an institute for training of teachers has been approved for immediate take - off. Additionally,Government will make adequate provision for students financing this year. All
ongoing projects in the Education sub - sector will be completed this year. Accordingly, the sum of N21billion has
been proposed for the Education sub - sector.
Health:
Mr. Speaker, the Health sub-sector will equally receive priority attention this year. To this end, every local government headquarters must have a functional general
hospital starting from this year. Government intends to complete all the ongoing construct ion and renovation of health centers across the state the year. Also, the completion of the Chief Melford Okilo Memorial Hospital, Yenagoa to boost health care delivery in the state will be a major priority of government this year. The sum of N7.2billion is hereby proposed for the Health sub-sector.
Energy:
Mr. Speaker, the role of adequate power supply in making our state a viable investment destination for investors cannot be over emphasized. Though the challenges in this sub - sector are daunting, the present administration is determined to confront them frontally and squarely. To this end, all investments needed for
the installation of the 3 new Gas Turbines in the state will be made this year. The successful completion of this initiative will no doubt boost small and medium scale businesses in the state. Also, more rural communities will be linked to the national grid this year. Accordingly, the sum of N4.9billion is
earmarked for the Energy sub - sector.
Agriculture:
Mr. Speaker, as a major thrust of our employment generation activities, various agriculture programmes will be embarked upon by the state to provide employment
and ensure food security in the state. Government intend to ensure the smooth take off of our strategically established Special Purpose Vehicles (SPVs) for commercial agriculture development in the state. These SPVs include: The Bayelsa Oil Palm Ltd, Nigerdelta Seafoods Ltd, Bayelsa Farms Ltd and Creek Foods Supplies Limited. To ensure their success, we have provided for value chain transformation programmes to give strength to the activities of the various companies. We shall partner with multilateral agencies to increase the funding base available for various agriculture initiatives to be embarked on to create job/wealth for the good people of Bayelsa State. We intend to make our greatest impact on the good people of Bayelsa State from the Agriculture sub - sector. The sum of N3.5billion has been proposed for the
Agriculture sub - sector.
Sports:
Mr. Speaker, you are quite aware of the important role of Sports in harnessing and mobilising the potentials of our teaming youths for positive development. To this end, a
sport academy will be established to drive this process. All the Sports in which the state has comparative advantage will be given greater impetus this year. Mr. Speaker, the construction of a befitting stadium for the state is
long overdue and that will start this year. Also, more training pitches will be constructed this year. Additionally, government is seriously concerned about the
dwindling fortunes of our 3 football outfits: Bayelsa Queen, Bayelsa United and Ocean Boys. Therefore government shall
put all the needed machinery in place to ensure their restoration to the path of glory once again. The sum of N4.9billion is allocated to the sport sub -
sector this year.
Local Government and Community Development:
For the 2012 fiscal year, government will kick start
the process of integrating the administrations at the 3rd tier of governance in the state into the Restoration Agenda of the present Administration. To this end, government intends to mobilise all available resources at the three tiers for positive development. In more specific terms, government intends to
collaborate with the Local Government Administration in the state to carry out massive community development projects particularly those that relate to Education and Health care delivery. This is intended to give our good people in
the rural areas a breath of fresh air. All ongoing projects in the Local Government and Community Development sub - sector will be completed this year. Accordingly, the sum of N5.1billion is allocated to this all important sub-sector.
Water Resources:
Mr. Speaker, the Restoration Agenda of the present Administration as it relates to the water sub - sector is such that for the remaining days and months of this year, water must flow in all nooks and crannies in the Yenagoa metropolis. Therefore all water upgrading projects at Igbogene, Okaka, Etegwe, Swali, Ovom
and Kpansia shall be completed this year and the water stations made to perform optimally. Accordingly, the sum of N2.1billion is allocated to develop our water resources sub - sector.
Information and National Orientation:
In order to further advance the course of our Restoration Agenda, Government intends to adequately fund the Information dissemination machineries in the state (State Radio, State Television, State News Paper Corporation and
State Ministry of Information) This is to ensure that our people are properly informed of the various activities of
government. The sum of N2.6billion is hereby earmarked for this sub - sector.
Youth & Women Development:
The issue of equipping the vast majority of our youths with relevant skills will be accorded high priority this year. We just have to build the capacities of the youths with various
training programmes so that we can steer them away from militancy and other antisocial tendencies. On the issue of women empowerment government intends to
take pragmatic steps to restore the dignity of our women in the state. The sum of N1.6billion is allocated to these sub - sectors.
Judiciary:
Mr. Speaker, please permit me to use this medium to express my profound happiness to the Judiciary for the extremely cordial relationship that is existing between our both Arms of Government. All the projects listed for execution this year for the state Judiciary will be implemented to the letter. Accordingly, the sum of N2.2billion is allocated to the State Judiciary for the
2012 fiscal year.
Industry and Investment:
Government is undertaking Entrepreneurial Skills Training
Programmes to give business management skills for growth and business sustenance to our people.
Mr. Speaker we will be undertaking studies on Small & Medium Scale business development to give information on the businesses that can be set up by our people. We will also be collaborating with the Bank of Industry to provide
funding for the creation of the these businesses. Attraction of foreign and local investments into the state is also a major thrust of this government as we will put in place a conducive environment in which investments and
businesses will thrive in the state. Accordingly, the sum of N480million has been set aside for this purpose.
Culture:
Mr. Speaker, my administration intends to develop and promote the Ijaw Culture and for this reason a ministry for the development and promotion of the Ijaw
Culture (Ministry of Culture & Ijaw National Affairs) was created. We shall set up an Institute of Ijaw Language, procure musical instruments, establish a digital recording studio and a Film editing studio all for the purposes of developing and promoting the Ijaw Culture. We
will also design and construct an arts gallery to enhance this objective. Mr. Speaker, the sum of N283.3million has been set aside for this purpose.
STRATEGIC IMPERATIVES AND AGENDA GOING FORWARD:
Mr Speaker, in addition to these projects, this Administration shall implement the following strategic initiatives in 2012 to stimulate the State economy and increase employment opportunities. In this regard, this Administration;
· Mr. Speaker, you may also recall has submitted two bills to this hallowed chambers to stem the
tide of cultism and violence. This is to ensure that we curtail the nefarious activities of some no good few among us and ensure that we have a state, where we can all live in peace and harmony.
· Mr. Speaker, we are also investing heavily in security enhancements in the form of technology and intelligence gathering to ensure that our state is adequately secured and policed.
· Mr. Speaker, we shall be forwarding in due course to this hallowed chamber a bill on Privatisation and Commercialisation to provide the legal backing for our
engagement with the organised private sector in fostering growth of our economy.
· Mr. Speaker, we shall partner with the Federal Government and the organised private sector to begin the development of our own deep seaport that will employ a large number of our teeming youths and create a gateway through our state for the free flow of goods into the country.
· Mr Speaker, this administration shall take very seriously the education of the girl child that is why i have appointed a Senior Special Assistant, who shall actively pursue all our programmes in this regard.
Mr Speaker, Distinguished and Honourable members of the Bayelsa State House of Assembly, It is with utmost regard that I lay before you the revised 2012 Budget Estimates
of the government of Bayelsa State for your consideration. It is my humble prayer that this distinguished House will give
this bill an expeditious consideration for budget implementation to commence soonest.
I thank you most sincerely for your kind attention and may God bless our land and the people of Bayelsa State.
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