By Garba Abdullahi Bagwai
Presentation of 2022 Approprin Bill to the State House of Assembly by
His Excellency, Mohammed BadaruAbubakar, MON, mni
The Executive Governor, Jigawa State
Wednesday 10thNovember, 2021
The Right Honorable Speaker,
Other Principal Officers and Honorable Members,
Distinguished Ladies and Gentlemen,
A very goodmorning to you all.
- It is with high sense of responsibility and solemn gratitude to Allah Al-Mu’izz, The Giver of Honor – that I stand in this hallow chamber of the State House of Assembly to present the 2022 Appropriation Bill to the Honorable Members for consideration and subsequentpassage into Law. As per the norm, before submitting the draft bill and its associated documents, I will briefly highlight on progress achieved in the implementation of the 2021 budget as well as provide the highlights of the 2022 Fiscal Plans that culminated into the draft Appropriation Bill. This would be in terms of the 2022 budget thrust, aggregate revenue projections and how these have been strategically allocated to the various expenditure components in line with our policy objectives and priorities.
- Let me at this stage put on record, our profound gratitude to both the leadership and the entire membership of the State Legislature for continuously working in unison with the executive branch in the discharge of our respective constitutional mandates and delivering service to our people. The teamwork spirit exhibited by the legislative arm has significantly contributed to our six-years of success stories in the conceptualization and implementation of our fiscal plans with lasting positive impact of social and economic wellbeing of the citizens. I remain confident that the due diligence of the Honorable Members in the discharge of their legislative mandates and other oversight functions would continue to be purposeful so that together, we achieve much more in transforming the socioeconomic landscape of our dear State for the better. May God Almighty Al-Fattah – The Giver of Victory – makes us resolute and victorious in serving our people.
Brief Review of 2021 Budget Performance
- Honorable Members would recall that Law No. 4 of 2020 has appropriated the sum of N156,588,000,000 for the Services of the Jigawa State Government during the 2021 Fiscal Year. In line with the State’s long-term strategic development objectives of sustainable improvements in the social and economic wellbeing of our people, the 2021 Budget was focused on the pursuit of “Sustained Economic Growth and Social Transformations”. Subsequently, to accelerate the implementation of our development agenda, the House also passed a Supplementary Appropriation Law of about N21.4 billion. As would be seen, this made it possible to accelerate the completion of a number of ongoing projects and allowed for the commencement of new ones particularly in the health, education, infrastructure and commerce & investment sectors.
- Let me at this stage inform the Honorable Members that like the previous year, the 2021 Fiscal Year also has its measure of fiscalchallenges. While the worst of the COVID-19 Pandemic seems to be over, nonetheless, its negative impacts on economic and social life continues to linger-on especially with the emergence of new and seemingly more lethal variants of the virus. Until recently, most of the world economies have remained in a lockdown with travel restrictions which continued to strangle world trade, commodity prices, global economic value-chain and the overall growth of the global economy. While the Nigerian economy has struggled to maintain a level of resilience, it has continued to be directly affected by the contagion effects of the stifled growth of the global economy. This is particularly so with the recent global energy crises and a soaring international inflationary trend. Even as the Nigeria Economic Outlook remains positive especially with the reported positive GDP growth and a rebounding international oil price, the national inflationary trend and the weakening of our national currency could potentially impact negatively on the implementation of our budgets as planned.
- Recently, the Third Quarter Report on the implementation of the 2021 Budget which covered the period of January to September was published.While on the one hand, the overall aggregate performance on the income side was over 75%, on the other hand, the expenditure records as at then, indicated an overall performance of only about 64%. It is however, worthy of note that, even as at the end of the third quarter, some of the key revenue and expenditure components indicated much higher performance. For instance, on the income side, the overall recurrent revenues performance (including IGR) was very satisfactory at over 85% based on the original approved estimates. For the nine months period, recurrent revenue receipts totaled about N72.9 billon against the original approved estimates of N113.1 billion. With regards to the expenditure components where the aggregate performance was reported to be about 64%, it is worthy of note that the recurrent expenditure components comprising of payment of personnel emoluments and other recurrent expenditures, performed more impressively at over 92%. The relatively lower performance of some of the capital receipts has correspondingly affected the implementation of some of the capital projects leading to relatively lower performance over the nine-month period.
- Honorable Speaker, despite the challenges I have earlier mentioned, with the benefit of hindsight and taking into account revenue accruals, expenditure payments and commitments since the end of September, the full-year performance of the budget was extrapolated to be relatively higher than reported in the third quarter report. Based on the full-year preliminary appraisal, it is envisaged that around N138.9billion would be the total accruals into the consolidated revenue fund of the State. This includes the opening balance for the year and other capital expenditure grants. On the other hand, the total expenditure is expected to reach almost N133.2 billion. Relative to the original budget, these represent about 88.8% and 85.1% performance respectively both of which areconsideredto be very satisfactory. However, taking the supplementary budget in account, the performance would be slightly lower but still substantial enough to deliver considerable budgetary outputs and outcomes. As intended, this has accelerated the attainment of our objectives of sustained improvements in the social and economic wellbeing of our people.
- With respect to the expenditure components, almost 57% of the total expenditures during the year were on recurrent expenditure comprising of personnel, overheads and other recurrent expenditures. The balance of about 43% was on capital investments. The total actual recurrent expenditure of about N75.3 billion indicated a performance of almost 97% against the original budget. Indeed, I feel very delightful to report that despite the fiscal challenges, we have been able to prudently manage our resources to allow for prompt and full funding ofpersonnel emoluments, the State Pay-as-you-go pensions and gratuities, and monthly remittance of Government’s 17% contribution to the contributory pension fund throughout the year. This includes periodic top-up in form of government-to-government loans, for a number of our Local Governments that were facing liquidity issues. Other key non-salary recurrent expenditure funded during the year included:
a) Payment of student scholarships and bursary awards for local and overseas students including for the 160 medical students recently sent to Sudan;
- N1.62 billion
b) Settlement of verified inherited liabilities some of which dated as far back as the year 2000;
c) Operation and Maintenance of Street Lights in Local Government Headquarters;
d) Operation and Maintenance of Water Facilities in Small Towns and Urban Centres throughout the State;
- N1.10 billion
e) Settlement of National Examination Fees;
- N0.53 billion
f) Institutional Feeding in Secondary and Primary Schools (including the State Top-up for Federal Government’s School Feeding Program;
g) Payment of Government’s Share of the State’s Contributory Pension Fund;
- N1.42 billion
h) Sustenance of the Free Maternal and Child Healthcare Program. – N1.02 billion
- In addition to the foregoing, it is worthy of note that Government is cautiously taking proactive measures to meet manpower shortage in some critical areas. In the last eight months, hundreds of teachers and medical staff were recruited including about 120 first class students who were given automatic employment by the State Government and over 400 medical staff consisting of those hitherto under the World Bank supported Save One Million Lives Programand graduates of school of Nursing and Midwifery.Furthermore, arrangements have been concluded for the commencement of the J-Teach Program under which 4,500 NCE Graduates were enrolled through a rigorous selection process. The policy is to gradually convert those found to be committed and competent into the State Civil Service as Permanent and Pensionable Staff. Related to this, is the guidance and counselling activities in the Office of the Head of the State Civil Service particularly with regards job placement. I am glad to inform the Honorable Members that in the year 2021, Government has successfully facilitated the placement of over 500 Jigawa State indigenes on various recruitment exercises mostly in the military and para-military institutions. This brings to almost 6,000 such job placements since 2015.
- As earlier indicated, even though both the second and third quarter budget implementation reports have indicated relatively lower capital spending, I am pleased to report that as of the end of October, over N40.6 billion was expended on the payment of capital projects as certified by the Due Process and Project Monitoring Bureau. Taking into account outstanding valuations, the pace of project implementation including for newly awarded contracts that have been mobilized as well as the extent of project financing for grants-funded projects for which the State has paid significant amounts as counterpart funds, it is deduced that about N57.92 billion would be expended on capital projects and programs by the end of the fiscal year. Relative to the original budget, this represents almost 74% capital budget performance.
- With this satisfactory level of capital expenditure performance, the corresponding budgetary outputs and outcomes were equally pleasing. The achievements recorded during the year have greatly contributed in building up our over-six years of positive transformations aimed at achieving the State’s long-term strategic development objectives of sustainable improvements in the social and economic wellbeing of the people.
- Honorable Speaker, permit me at this stage, to briefly highlights on some of the budgetary outputs and outcomes delivered across some of the sectors. and how that has contributed towards the attainment of all our policy objectives. The review will not be exhaustive as it will cover only some of the major capital investment. I am however, pleased to inform the Honorable Members of the recent publication of a compendium of our achievements which has documented, in facts, figures, pictures and graphics, what we have cumulatively achieved over the years. I will present this compendium along with other documents to the Honorable House at the end of my presentation.
The Economic Sector
- In pursuit of our objectives of economic diversification and inclusive economic growth, I am pleased to report that the implementation of the 2021 budget has appreciably contributed to their attainment in several areas. This is particularly so in the following areas:
a) Agriculture–Since assuming the mantle of leadership, we have consistently pursued an agricultural transformation agenda not only aimed at achieving our objective of economic diversification but most importantly meant to contribute to the Federal Government’s agenda of achieving food security for the nation. This is in addition to adopting the agricultural transformation agenda as major strategy for job creation and poverty reduction through the development of the entire agricultural value chain. Today I feel satisfied that all our interventions in the Agricultural Sector have yielded dividends beyond expectations. For instance, today Jigawa State is a major producer of rice meeting the needs of five fully functional integrated rice mills, four 25-tons and twelve 10-tons capacity rice mills and almost two thousand small rice milling machines. This much has been achieved due to the continued support provided by the State Government through our targeted extension services, inputs supplies, research &development and our facilitatory role in connecting farmers to various agricultural financing facilities. While we strive to continuously bring more land under cultivation, we have also been able to mobilize more people, especially the youths, into the farming business and other aspects of the value chain. Same feats have been achieved for other major crops including sesame, hibiscus and groundnut. Honorable Members, our recount of achievements in the Agric Sector, no matter how brief, will not be complete without mentioning our success stories in the goat breeding program for women. As of today, 20,167 women have benefitted from the program with 60,381 goats distributed. The program has greatly helped empower women and improve their social and economic wellbeing. Our cluster-farming initiative has also been expanded now with over 3,750 clusters covering about 62,000 hectares with over 71,100 farmers engaged and fully supported by the State Government.
b) Roads Development – Provision of robust roads infrastructure is also part of our strategy for promoting inclusive economic growth and diversification. With the progress so far achieved, Jigawa State has one of the highest road networks in the federation. The State is ranked first in the country in the ease-of-doing business survey.Virtually all the Urban Centers and Small Towns in the State are interconnected with very robust and reliable road networks including feeder roads connecting hundreds of other towns and villages with the main regional roads. This year, we have so far expended over N11.7 billion on the completion or continuation of a number of ongoing regional and townships roads while we have also commenced some new ones. Outputs achieved in the roads sector during the year includes among others:
I. i. Completion of the Rehabilitation of Gwaram-Basirka Road;
II. ii. Completion of Ringim Township Road;
III. iii. Completion of Phase III of Digimsa-Birniwa-Road;
IV. iv. Commencement of Birnin Kudu New Township Roads;
V. v. Commencement of two new projects including Koko-Fayam-Fayam andRingim-Fachawa; and
VI. vi. Commencement of dualization of Sambajo Roundabout – Kwanar Kogi in Hadejia and Fanisau – Unity Pentagon Roundabout in the State Capital.
- Other completed critical infrastructure projects included the completion Gagarawa – Gumel and Gagarawa Gunjungu33KV Lines, Electrification of Dan-Masara Industrial Estate in Dutseand continuation of ongoing projects at Agin, Garun-GabasTsohuwa, Kantudu and Shuwarin as well as replacement of transformers across the State.
- Commerce and Investment – While sustaining our efforts towards continuous improvement in the State’s business and investment climate, I am pleased to inform the Honorable Members that Jigawa State has emerged 3rd in the overall ranking of 2021 Subnational Ease of Doing Business Baseline Survey Report. Our desire to establish an Industrial Park at Gagarawa is gradually becoming a reality. The plan is to have a multi-purpose industrial estate owned and managed by the State Government to serve as a regional manufacturing, trade, logistics and distribution hub with all the requisite facilities and infrastructure. The investment focus of the Park is designed around four designated industrial clusters comprising of Micro, Small, Medium and Large scale enterprises. Already, an Environmental Impact Assessment has been carried out including project designs. Presently clearance works have commenced with the intention of providing 60x2MVA Power Connectivity, Water Supply, Security and Communication Facilities. The 2022 Budget will make adequate provision to ensure that the Industrial Park came into being in 2022.
Social Services Sector
- Here I will only briefly highlight progress achieved in the education and health sectors only being the major springboards for the delivery of the requisite human development services required to achieve positive change in our human development indicators.
- For the Health Sector – we have over the years, implemented a health sector reform agenda which aims to increase access to qualitative and affordable healthcare. While prioritizing Primary Healthcare, we have also done a lot to improve secondary and tertiary care across the State.The records indicate that so far, upto about N8.4 billion has been expended in the Health Sector during the 2021 Fiscal Year. In this regard, I am pleased to inform Honourable Members that the achieved budgetary outputs has taken us closer to the attainment of our target of one functional Primary Health Clinic in each of the 287 Wards in the State and at least one functional Secondary Health Facility in each of our 27 Local Governments. At the moment we have 279 functional PHCs each with the requisite infrastructure, human resources and facilities capable of providing basic obstetric care services. Of recent, fifty-one maternity-wings popularly known as L-1, were added to the PHCs to meet the minimum standards of the Basic Healthcare Provision Fund. At the secondary level, Garki, Gantsa and Guri General Hospitals have been completed while Kiyawa, Maigatari, Karkarna, Kanya and Taura PHCs were upgraded to General Hospitals. Construction of three additional General Hospitals at Gagarawa, Gwiwa, Kiri-kasamma is also ongoing in earnest. In addition, the construction works of the two new ongoing Specialist Hospitals at Hadejia and Kazaure have all attained about 90% progress to completion. Other outcomes achieved include:
In terms of Human Resources for Health, we have continued to take proactive measures that would provide long-term solutions to the dare situation we met the health sector some years ago. The sixty (60) students that studied medicine in China have returned and are presently undergoing internship in Nigeria. This year we sent another set of 160 Medical Students to Sudan comprising of 100 females and 60 males. Locally, we have 420 medical and allied students all of which have been put under bonding to serve the State on completion. The second health training institution, established by this administration, namely School of Midwifery Babura, has reached an advanced stage of completion and it is our objective to see that the school is ready to begin student enrolment next year;
In the area of Healthcare Financing, I am glad to inform Honourable Members that the newly established Jigawa Contributory Healthcare Management Agency (JICHMA) is now fully functional with almost 224,000 contributors in the formal sector enrolled and over 46,000 poor and vulnerable households also enrolled at the community level to enable them access healthcare service under the Basic Healthcare Provision Fund. By all means, this is a big push towards making qualitative healthcare service accessible and affordable to the citizens;
In terms of our Preparedness and Response Strategy, I am pleased to inform Honorable Members that we are doing exceptionally very well. As per the National Statisticson COVID-19 Global Pandemic, Jigawa State has the least cases and mortalities. We are also among those with the highest number of COVID-19 vaccinated, currently at about 160,000 and still counting. Recently we had the unfortunate incidence of cholera outbreak in some Local Governments and within a relatively short-period, we were able to vaccinate almost one million people with the Oral Cholera Vaccines which helped to us to effectively alleviate the situation. Let me take this opportunity to express our appreciation to UNICEF and the W.H.O. for collaborating with the State in mitigating and containing the Cholera Outbreak;
In our efforts to continuously improve the nutrition indices in the State, this year we procured the magic food called RuTF (Ready-to-use Therapeutic Food) worth over N100 million with which over 15,000 severely malnourished children were treated. I am delighted to learn that our Local Masaki Nutrition Program is also yielding huge positive results in the treatment of moderately malnourished children. Over 6,000 such cases were reportedly treated across the 150 Masaki Sites established across all the thirty constituencies in the State;
To complement our Free Maternal and Child Healthcare Intervention in which we are spending N75 million every month, we introduced Emergency Transport Services in partnership with the transport unions to transport women from the rural communities to the health facilities for safe delivery. About 1,000 women were transportedunder the scheme in the ten 10 months thus preventing possible birth-related mortalities.
- The Education Sector – This is second springboard through which we hope to achieve our human development agenda. Before presenting some of our achievements in this sector during the year, let me on behalf of myself and the Government and People of Jigawa State, place on record, our profound gratitude to the Federal Government of Nigeria and in particular, to President Muhammad Buhari, for establishing three tertiary educational institutions in Jigawa State during the year.These include a Federal University of Technology in Babura, a Federal College of Education in Birnin Kudu and a Federal College of Agriculture in Kiri-kasamma. We are all sincerely delighted. I think this is unprecedented for any State and represents a giant progress for our State given the associated developmental benefits of establishing these Institutions. Coming back to our achievements, so far, over N13.68 billion has been expended in the implementation of various projects and programs across all components of the education sector during the year. With this, substantial budgetary outputs were delivered with very appreciable impacts towards improving our educational indices. A key component of our Education Change Agenda has been the School Decongestion Program meant to improve our Pupil-Classroom Ratio as to provide a conducive atmosphere for both teaching and learning. It is pleasing to note that our massive investment in education sector is gradually changing the educational indices for the better. As reported in the 2021 Annual Sector Performance Evaluation Report, primary school gross enrolment ratio has increased from 85% in 2018 to 91% in 2020. Primary school pupil-teacher ratio has however, remained around 63:1 largely due to the unprecedented surge in primary schoolenrolment courtesy of the primary school feeding program and BESDA interventions through which over 165,000 out-of-school children returned to school. Other educational outcomes achieved as reported in the Sector Performance Evaluation Report includes:
i. Increased girl-child primary school Gross enrolment rate from 59% in 2018.to 73% in 2020;
ii. No of students with 5 credits and above (including Mathematics and English) improved from less than 20% in 2018 to 50% in 2020 for WAEC and from 50% in 2018 to 60.2% in 2020 for NECO;
- At the tertiary education level, even as the number of schools is expanding with the three new Federal Institutions, the State Government is also doing a lot to expand those owned by the State in terms of more course accreditation. This will translate into more student admissions. In this regard, at least, twenty-five more courses were accredited across these Institutions. At the moments, plans are underway to commence the construction of the faculty of medicine at Sule Lamido University, Kafin Hausa.
Water and Sanitation
- According to the latest Water, Sanitation and Hygiene National Outcome Routine Mapping Exercise published by the National Bureau of Statistics with support of UNICEF and other Development Partners, access to safe drinking water in Jigawa State is now assessed to be 92% which is second highest in Nigeria (after Lagos State). The same survey reports that Jigawa State has 49% of its households having access to basic hygiene services which is the highest among the States in the Country. In addition, presently Jigawa State has 18 Local Governments certified as attaining the Open Defecation Free (ODF) status -which is also the second highest in the Country. These feats clearly indicate the results of our continued investments in the Water and Sanitation Sector over the years. Total capital investments in this Sector in 2021 amounts to about N4.1 billion with appreciable progress towards achieving universal access to Safe drinking water and about 75% access to sanitation services by the end of year 2022. Some of the specific outputs achieved during the year included:
i. Rehabilitation of 193 Motorized and Solar-powered Water Supply Schemes;
ii. Upgrading and conversion of 20No. motorized water supply schemes to solar powered;
iii. Construction of 80 new Solar powered water supply schemes;
iv. Provision of about 300 Hand Pump Boreholes in Rural Areas;
v. Improvement of Water Supply in the State Capital and all the 27 Local Government Headquarters;
vi. Rehabilitation of both solar and motorized schemes in 193 small towns;
Land Administration, Urban Development and Housing
- This is another Sector considered very key in the pursuit of our development objectives. Whatever we do, whether agriculture or industry, environmental protection or development of social and economic infrastructure, is done on Land. What investors look for on arrival is always land to actualize whatever investment they are bringing to the State. It thus becomes imperative that we administer and manage our land resources in a very systematic, effective and efficient manner. It is in the light of this that during the outgoing year we begin the process of actualizing the long-awaited Jigawa State Geographic Information System. Other achievements in the Lands Sectors include:
Conduct of Property Registration across some of the major urban centers in the State including Birnin Kudu, Dutse, Gumel Hadejia, Kazaure and Ringim. The exercise has enabled us to duly register over 25,000 landed properties which will form part of the State’s GIS while also providing credible information for urban development and revenue administration;
Take-off of the State Mass Housing Programme is another very important achievement in the sector. This commenced as a pilot in 16 Local Governments with the provision of 1 Block of 4 Unit Houses. Additional sixteen new ones have been completed this year while arrangements have been completed to award eleven more before the end of the year bringing the total to forty-three blocks. We intend to scale this up in 2022. To compliment this, the State Government has provided lands to Family Homes Funds Limited for the Construction of 500 Units of 1 Bedroom, 2 Bedrooms and 3 Bedrooms under the National Social Housing Programme at Dutse, Gumel, Hadejia, Kazaure and Ringim Emirates.
- Honorable Members, that was a brief review of the implementation of 2021 budgetwhich was not exhaustive as it only covers some of the sectors through which we majorly deliver development objectives.
Policy Thrust, Objectives and Priorities of the 2022 Budget
23.Mr. Speaker and Honorable Members, as we try to build upon and begin to consolidate our six-yearjourney of progress and development, the overarching policy thrust of 2022 budget consistentlyremains to be the sustained improvements of the citizens’ social and economic wellbeing. This is in line with strategic objectives of the State Comprehensive Development Framework (CDF II) which has been the pursuit of policy initiatives that guarantee inclusive economic growth with sustained improvements in our basic human development indicators. Even as we are about to commence preparation of the Third Edition of the CDF, the sectoral policy objectives and strategies as contained in the extant document were used as the basis for the 2022 – 2024 Medium Term Sector Strategies which provided the context for the annual budgets. Accordingly, resourceallocations in both the MTSS and the 2022 Budget was done on the basis of the following strategic considerations:
i. Contribution to sustained growth and diversification of the State’s economy which requires continued focus on agriculture, critical infrastructure, development of small and medium scale enterprises which also prioritized improvements in the Business Environment and Investment Climate;
ii. Sustainable improvements in the State’s human capital in terms of education, health, water & sanitation, and skills development. This also requires sustained investment on projects and programmes in the relevant sectors that would continue to deliveroutcomes that willsignificantly impact on human developmentindices suchas net school enrollment, literacy rates, maternal & child mortality rates, child nutrition, access to safe water and sanitation, youth employment and a host of others.
- Respected Members of this Honorable House, even as we sustain the momentum of progress towardsimproving the socioeconomic wellbeing of the citizens, we would continue to do much more, not just to sustain but to continuously improve the relative peace and security we enjoy in Jigawa State. This is in consideration of the security challenges being faced in some parts of ourcountry including the Northwest Region. As you are all aware, since the beginning of this year, we have stepped up efforts supporting the collaboration of the various security agencies in the State to mitigate and effectively contain any emerging security challenge in the State. The expanded State Security Council now meets almost every month to take briefings, review the situation and re-strategize efforts. Accordingly, one key focus of our plans in the incoming year is to redouble on these efforts. In particular, more proactive measures would be instituted to support our traditional institutions in strengthening community-based security surveillance so that any potential security challenge could be identified early enough to be nipped-in-the-bud. While there are multifarious factors behind the security challenges, we believe restiveness among some segment of the populations is part of it. Accordingly, the 2022 budget would sustain and come with new initiatives and interventions aimed at providing sustainable means of livelihoods for the people, especially the youths and other vulnerable segments of the populations. In addition, just as we initiated the J-Teach Program, we arestudying the situation and exploring the possibility of partnership with some of our Development Partners to initiate a similar program in the Health Sector. We believe, if this is achieved, it would significantly improve service delivery in hard-to-reach areas of the State while also providing means of livelihoods for hundreds of youths who have acquired various health and medical related educational qualifications.
- Honorable Members, having outlined our policy thrust, focus and priorities in the next fiscal year, it is my honor and privilege to present to you some further details of the 2022 Budget which we named “Budget of Consolidation for Sustainable Socioeconomic Development”. This succeedsthe 2021 Budget of Sustained Economic Growth and Social Transformation aimed at contributing to our “Next Level Agenda” initiatives.
An Overview of the 2022Proposed Budget
- Based on the consolidated revenue projections and expenditure estimates, I present to the Honorable House a Proposed Budget ofONE HUNDRED AND SEVENTY-SEVEN BILLION,SEVEN HUNDRED AND NINETY-FIVE MILLION, FIVE HUNDRED AND EIGHTY-EIGHT THOUSAND NAIRA ONLY(N177,795,588,000)for the services of the Jigawa Sate Government in the 2022 Fiscal Year. While this surpassed the 2021 original budget byabout 13.5% or about N21.2 billion, it is almost equal in size with two appropriations made during the year, that is taking the Supplementary Budget into account. The aggregate expenditure components of the proposed budget consist of:
(i) Recurrent Expenditure;
(ii) Capital Investments;
(iii) Contingency and Stabilization Funds – N3,535,000,000
- It is noteworthy that over 51% of the proposed budget is in favor of capital investments through which we planned to deliver most of the budgetary outputs required to achieve most of the policy objectives of the budget.
2022 Proposed Revenue Estimates
- Out of the total projected revenue, it is envisaged that almost 68%,amounting to almost N120.75 billion, would accrue from recurrent revenue sources including Federal Transfers, Internally Generated Revenues and other Recurrent Reimbursements. The balance of N57.046 billion representing about 32% is expected to accrue from various capital receipts including the 2022 Opening Balance. A rundown of all the major revenue sources for the financing of the proposed budget is given as follows:
I Internally Generated Revenue – N29,806,000,000
II Statutory Allocation, VAT&Other Fed. Transfers – N66,800,000,000
III Local Govt. Contribution to Pri. Edu. & PHC. Staff Costs – N24,143,588,000
IV Opening Balance for the 2022 Fiscal Year – N6,000,000,000
V Internal and External Loans – N21,730,000,000
VI Other Capital Receipts, Grants & Reimbursements – N29,361,000,000
- Based on the breakdown just provided, it is envisaged that the Federal Transfers comprising of Statutory Allocation, Value Added Tax and other non-regular ancillary receipts, would fund close to two-fifths of the total expenditure outlay. The initial fiscal assumption and macroeconomic indicators used in the MTEF Revenue Forecasting Model based on which Sector Envelops and Budget Ceiling were provided to the Sectors and MDAs, were subsequently modified and harmonized with the indices adopted by the Federal Government in the final proposed estimates for the year 2022. Theseparameters which were also linked to the Economic and Fiscal Updates and the Fiscal Strategy Paper included:
i. A National Inflation Rate of 13%,
ii. Oil Production and Price levels at 1.88 mbd and $57/b respectively;
iii. National GDP Growth Rate of 4.2%;
iv. Official Exchange Rate N410:1US$; and
v. Mineral Ratio of 15%.
30.Proposed Internal Revenue Estimates amounts to about N29.81 billion equivalent to almost 17% of the total projected income for the year. The estimates were largely based on a medium-term revenue strategy developed by the MDAs which is also in line with the provisions of the State Tax Policy developed earlier in the year. Primarily, the Tax Policy aims to facilitate the attainment of our fiscal objectives by ensuring orderly development of the State’s internal revenue administration for optimal performance. The proposed IGR is believed to be very realistic as it is based on an informed basis that takes into account the medium-term outlook and potentials within each sector. In this regard, I would like to inform the Legislators that we intend to review Law No.4 of 2019 titled “Jigawa State Revenue (codification and consolidation) in order to strengthen it in line with the objectives of the State Tax Policy. Suffice it to add that proposed IGR consists of State Taxes collectable by the State Internal Revenue Service, Other IGR in form of earnings and sales, fine & fees, rents, stamp duties and other recurrent reimbursements to the State Government.
- Honorable Speaker, as per the rundown of all the proposed revenue components, it is also envisaged that the sum of N21.73 billion would accrue in to the State’s consolidated revenue fund in form of Internal and External Loans. These included the N12.5 billion as part of the Concessional Bridging Facility provided by the Federal Government to all States of the Federation as already approved by Honorable House. The balance of N9.23 billion would be in respect of the already existing Islamic Development Bank Facility and the new World Bank Funded Rural Access and Mobility Program (RAMP) from which about N6.3 billionis envisaged to be drawn in 2022.
- The last item on the envisaged incomes in the 2022 Fiscal Year as earlier listed included Other Capital Receipts, Grants & Reimbursements of about N29.3 billion. As usual, this comprises of various internal and external grants majorly including expected receipts from the Tertiary Education Trust Fund, Universal Basic Education Grant, BESDA,World Bank Funded Federal Grant in respect of the Nigeria COVID-19 Action Recovery and Economic Stimulus Program (N-CARES); and the African Development Bank Funded Agricultural Transformation Program.
Highlights of Proposed Expenditure Estimates
- Honorable Speaker, let me now provide the highlights of the proposed expenditure estimates which, as mentioned, amounted to exactly N177,795,588,000. On the whole, Recurrent Expenditure to Capital Investments ratio stands at 49:51 percent respectively. That is N86,653,588,000 for Recurrent Expenditure and N91,142,000,000 for Capital Investments. It is noteworthy that almost 2% of the total expected incomes amounting to N3.54 billion were set aside for Stabilization and Contingency Funds.
- From the perspective of the entire expenditure allocations, it would be important to point out that almost N85.88 billion goes to the two key Human Development Sectors of Education and Health Sectors thus accounting for over 48% of the total proposed budget. The Education Sector as a whole is allocated almost N57.18 billion representing about32% of the total budget which exceeds UNESCO’s Education for All prescription of 26% allocation to Education. On the other hand, the Health Sector is earmarked N28.7 billion equivalent to slightly over 16% of the total proposed budget. This also surpassed the 15% prescription of the Abuja Declaration. This goes to demonstrate the priority we accorded to human capital development and our resolve to continuously achieve positive improvements in the various key performance indicators across these sectors. This also demonstrates our commitment to the Mutual Accountability Framework agreement we signed with the Foreign, Commonwealth and Development Office (FCDO) in the implementation of various programs being supported by our Development Partners.
- Honorable Members, the highlight of the two major recurrent expenditure components is provided as follows:
i. Personnel Cost – This is earmarked N53 billionequals to almost 30% of the total proposed budget. This covers the salaries and allowances of all the personnel in the State Payroll inclusive of SUBEB’ LEA Personnel and Primary Healthcare Agency Personnel in the LGA Management Offices. Even as this number kept steadily expanding despite frequent exits, we still have manpower shortages in a number of Agencies. This informed the introduction of J-Teach initiative and current thinking of a possible similar program in the health sector.Notwithstanding the gradual expansion of the State’s Salary Bill partly contributed by the adoption of the new Thirty-Thousand Minimum Wage about two years ago, Government would continue to ensure that manpower- and skill-gaps are identified and gradually attended to. We are presently reviewing a new State Human Resource Policy soon-to-be approved by the State Executive Council. This would be complimented by a comprehensive staff succession plan which would cover most of the Agencies critically affected. These measures are meant to systematically address current manpower challenges across a number of MDAs within the limits of the State’s fiscal constraints. We believe measures such as these are needed to ensure that the State Civil Service, as an institution in itself, remains reliable, effective, efficient and capable of delivering public service in the most responsive manner;
ii. Overheads and Other Recurrent Expenditures – Almost N30.1 billion is allocated to this important expenditure component which represents slightly over 14% of the total proposed budget. Principally, this would cover the cost of routine operations of Ministries, Departments and Agencies and other major recurrent expenditure such as Upkeep & Maintenance of Government Institutions like the State Secretariat Complex; Institutional Feeding for Schools and Hospitals; Payments for Internal and External Scholarships; Student Examination Fees, Operations and Maintenance of utility services particularly water schemes and urban street lights across the State; and payment of utilities consumed by Government Institutions; Settlement of Government’s obligations to the Contributory Pension Fund; and Public Debt Charges inclusive of principals and interests. Again, I should point out that, while on the one hand, Government is mindful of the need to control its recurrent spendings through prudent financial management, on the other hand, we are also fully aware that effective, efficient and responsive public service delivery largely dependson adequate funding. This understanding and current inflationary trend in the economy explains the increased provision relative to the 2021 Fiscal Year.
Capital Development Programme
- As earlier mentioned, the 2022 Proposed Capital Investment Outlay is up to N91.142 billion equivalent to over 51% of the Proposed Budget. Overall, the sectoral pattern of the proposed projects and programsas presented below, clearly reflects how strategically funds have been allocated in line with thrust of the budget and Government’s Policy Objectives and Priorities. Moreover, in line with Government’s commitment to begin consolidating its over-six year’s journey of positive economic and social transformations, the 2022 capital budget largely prioritize the completion and commissioning of ongoing projects. New projects generally come as components of an ongoing initiatives such as for instance, provision of new solar-powered schemes or construction of additional classrooms in existing schools. Notwithstanding the fact that governance is a continuous process with Governments having perpetual succession, it is not our intention to bequeath to any incoming administration unnecessarily huge contractual commitments and liabilities. This informed the decision to concentrate more resources towards the completion and commissioning of all our big ongoing projects. The sectoral breakdown of the proposed budget is given as follows:
(i) Economic Development – 45,468,000,000 50%
(ii) Human and Social Development – 39,855,800,000 44%
(iii) Governance and Administration – 4,510,200,000 5%
(iv) Law & Justice – 1,308,000,000 1%
- As you have just heard, 50% of the proposed capital investments goes to the Economic Sector where we have over the years, implemented projects and programs that have significantly contributed towards the development and diversification of the State’s Economy while also providing the necessary economic infrastructure and conducive environment for investment & entrepreneurship development.
- In line with our commitment to continuously diversify the State’s economy through sustained investments in the Agricultural Sector, the sum of about N8.55 billion has been earmarked for the various ongoing projects, programs and activities in the sector.
- This includes the continuation of various agricultural development programs funded through the trio of the World Bank, African Development Bank and the Islamic Development Bank. The proposed allocation also includes direct Government funding of the Cluster Farming Initiative, rehabilitation of irrigation infrastructure and livestock development.
- As most of us are, in order to actualize our plans to invest more in the livestock sub-sector, we are currently exploring partnership opportunities with foreign partners. We are also keying into the National Livestock Transformation Plan through which we hope to access Federal Grants for the Ruga Initiative. With that, we intend to establish at least three Integrated Livestock Development Centres focused-on animal breeding, dairy production as well as small ruminant development. It is envisaged that the proposed Livestock Development Centres would benefit thousands of farming families and provide job opportunities among our teeming youths with significant forward and backward integration along all aspects of the agricultural value chain and some aspects of the manufacturing industry. We also want to continue with serious development & conservation of grazing reserves and cattle routes.
- Another major component of the Economic Sector is the provision of robust infrastructure considered critical to the overall socioeconomic development of the State. Accordingly, the sum of N15.94 billion has been earmarked for the completion and commissioning of all ongoing Regional and Township Roads projects. This also includes upgrade of some existing roads with asphalt overlay and commencement of the World-Bank supported Rural Access and Mobility Program under which we intend to upgrade a number of existing feeder roads and open up the hinterlands in support of agricultural value-chain development. Other provisions in the Economic Sector include:
(i) Major Maintenance of Existing Roads some of which were badly damaged by erosion triggered by flooding; – N2.40 billion
(ii) Development of Commerce, Industry and Minerals Development comprising among others, Support to Small & Medium Scale Enterprises and Investment Promotion; – N2.75 billion
(iii) Conventional Rural Electrification Projects and Installation of Solar-based Street Lights in Urban and Small Towns across the State.
- N1.00 billion
- It is worthy of note that this allocation includes the sums of N500 million for the provision of infrastructure and facilities in the Industrial Cluster Layouts and support to Business Start-ups especially those severely affected by the COVID-19 Pandemic.
(vii) Economic Empowerment Interventions involving Micro-Credit &Business Development Support to Cooperatives& Start-ups, Development &Maintenance of Skills Acquisition Centers, and Women & Youths Artisans Skills Development Initiatives
- N1.51 billion
Social Services Sector
- As earlier mentioned, about N39.85 billion was allotted to the Social Services Sector equivalent to over 44% of the total Proposed Capital Expenditure. With a combined Capital Allocation of almost N32 billion, the Education and Health Sectors account for over 80% of the proposed allocation to the Social Services Sector. This again underscores our commitment to sustained improvements in the State’s human development indicators which translates into qualitative improvements in our stock of human capital. Data from the 2020 Annual Sector Performance Report indicated appreciable progress in most of the Key Performance Indicators in both the education and health sectors. These include among others,infant, child and maternal mortality rates, primary and secondary school enrolment and retention rates, and pupil-classroom ratio. The need to sustain the momentum of progress already achieved and consolidate informed the decision to continue such level of massive investments in these sectors.
- Honorable Speaker, for the education sector as a whole, the total proposed capital investment for the 2022 Fiscal Year is about N19.26 billion. The synopsis of the allocations to the various components of the sector is given as follows:
(i) Basic Education including jointly funded projects with UBEC and Basic Education Service Delivery for All (BESDA) Projects being supported by the World Bank
- N10.88 billion
(ii) Senior Secondary Education including provisions for Science & Technical Education and Islamic Education;
- N2.613 billion
(iii) Tertiary Education which is expected to be largely funded through the envisaged grants from the Tertiary Education Trust Fund;
- N5.583 billion
(iii) Adult Mass Education program including Continuing Education Centres spread all over the State. – N181 million
- These figures indicate that over 70% of the allocation to the education sector would be expended at the basic and senior secondary education levels. This is consistent with the fact that the major challenges in the education sector rest within the basic and senior secondary education components where we are still grappling with massive surge in enrolment and retentions courtesy of BESDA and School Feeding Program Interventions. In line with our school decongestion program, we have, over the years, established new schools to cope with increased enrolments. Basically, the provision is to continue to provide additional school structures and facilities and to continuously improve the standards of the various Effective Schools at the basic education level and Educational Centres of Excellence at the Senior Secondary School level established across the State.
- For the Health Sector which has a proposed capital allocation of bout N12.7 billion, major investments would be on the completion and equipping of all the ongoing Secondary Health Facilities including the two specialist hospitals at Hadejia and Kazaure. Arrangements are already underway to equip these and the other upgraded General Hospitals with state-of-the-art medical equipment and facilities. Details of the broad allocations to the health sector capital expenditure components are follows:
(i) Completion and equipping of all Ongoing General Hospitals;
- N6.4 billion
(ii) B/Kudu, Hadejia and Kazaure Specialist Hospitals Projects;
- N2.0 billion
(iii) Primary Health Care Projects and Programs including Upgrading of Primary Health Centres, Food and Nutrition Programme Interventions and Sustenance of Save-One-Million-Lives Program Activities;
- N1.7 billion
(iv) Development of Ward-level Facilities for Basic Healthcare Provision, Community Health Insurance Counter-Funding, and Free Maternal and Child Health Programme in Primary Healthcare Centres;
- N850 million
(v) Free Maternal and Child Health Programme in Secondary Hospitals;
- N800 million
Development of Health Training Institutions including College of Nursing & Midwifery B/Kudu, School of Nursing Hadejia, School of Health Technology Jahun and School of Midwifery Babura;
- N670 million
(vii) Other Health Programs and Ancillary Services including improvement of Ophthalmic Units in General Hospitals, Malaria and HIV/AIDS Control, TB & Leprosy Services and Development of Health Management Information System – N280 million
- Mr. Speaker, Other Honorable Members, permit me at this stage to give you a rundown of other proposed capital expenditure allocations as follows:
(i) Environmental Protection and Development including the commencement of a new World Bank supported program titled Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL);
- N5.93 billion
(ii) Governance and Administration involving the development of institutional buildings, procurement of utility / official vehicles, procurement of security gadgets, and other office furniture, equipment and facilities;
- N4.51 billion
(iii) Water and Sanitation Projects and Programs including Urban, Small Towns and Rural Water Supply projects;
- N4.31 billion
(iv) Women Affairs, Social Development and Social Protection including Women Empowerment, Social Welfare Support and Other Social Rehabilitation Activities;
- N1.76 billion
(v) Land Administration, Housing and Urban Development including Land Compensation, Establishment of Geographic Information System, Urban Development Control Activities and Provision of more Houses under the State’s Commercial Mass Housing Program;
- N1.41 billion
(vi) Administration of Justice which covered all the projects under the State High and Sharia Courts and the Judicial Service Commission;
- N1.31 billion
(vi) Information, Youth, Sports and Culture – N168.3 million
- Honorable Members, I feel it would be imperative to inform you that the 2022 Proposed Budget has included the sum of N5.06 billion for constituency projects comprising of N3.2 billion in respect of the 2022 Fiscal Year and N1.86 billion for the completions of ongoing ones. These mainly cut across various sectors especially education, rural water supply, general administration, primary healthcare and environment. Even as members are trying to be responsive to the yearnings of the people in deciding projects to implement in their respective constituencies, as much as possible these should also be within the priority sectors of our development agenda. In this regard, I am delighted to inform Honorable Members that to a large extent, the constituency projects have also greatly contributed to the fulfillment of a pledge of one-village-one-project throughout the State.
- Honorable Speaker, that is the Proposed Budget of the State Government for the 2022 Fiscal Year for which I submit the Appropriation Bill for the consideration and approval of the Honorable House. As I mentioned from the onset, while the budget seems unprecedented in size, we believe it is realistic and well-focused to deliver the intended outputs and outcomes.
The Local Government Budgets
- Mr. Speaker, as is the norm, I now present highlights of the 2022 proposed budget of the 27 Local Government Councils in the State. As usual, both the Ministry for Local Government and the Directorate of Budget and Economic Planning have worked together to ensure consistency between the State and the Local Government budgets in terms of policy thrust, objectives and priorities. As you are aware, a number of our Local Governments have continued to face serious fiscal challenges which affect their capacity to deliver as much as they would wish to. Nonetheless, there is no emphasizing the fact that, Local Governments play crucial roles in complementing our efforts to transform the State’s economy and improve the social and economic wellbeing of our people. Accordingly, the State Government would continue to collaborate with all the Local Government supporting them where necessary so that together we continue to move the State forward.
- In addition to the State & Local Governments Joint Project initiatives, the State and the Local Governments are also co-funding the provision of critical public service such as the operations and maintenance of water facilities, maintenance of urban street lights, primary education and primary healthcare services. All these have been duly considered in the preparation of both the State and the Local Government budgets. Other considerations included deduction for statutory deductions such as 5% Emirate Councils Fund, 1% Training Fund, 0.5% each for Ministry of Local Government and Directorate of Local Government Audit.
- The total projected incomes for the funding of the fiscal plans of the 27 Local Governments amounted to about N73.73 billion including envisaged receipts from Federal and State Transfers, Local Internally Generated Revenue and Capital Receipts. The proposed consolidated expenditure breakdown is as follows:
(i) Personnel Cost (including Local Government contribution to LEA and PHC Staff Cost; – N34.5 billion
(ii) Overheads and Other Recurrent Expenditure including some of the Recurrent Deductions; – N13.00 billion
(iii) Capital Development Projects and Program; and – N22.18 billion
(iv) Contingency Provision – N4.05 billion
- In conclusion Mr. Speaker and Honorable Members, let me once again, commend the State Legislature for the continued support and partnership in moving State forward. I would continue to appreciate your unwavering commitment and collaboration with the executive branch to deliverthe necessary public service for sustained betterment of the social and economic wellbeing of our people. This much has been demonstrated in the discharge of your oversight responsibilities and in our collaborations towards the implementation of thousands of constituency projects across the State.
- As we continue to effectively grapple and deal with existing challenges, more than ever before, we required the renewed commitment and collaboration of all the three arms of Government to move our State forward. Let me also request the Honorable Members to accelerate the budget hearings so that the 2022 Appropriation Law could come into effects by the 1st of January, 2022. In so doing, I would also implore on the members to ensure that the budget remains realistic and organically linked to the policy objectives and priorities of the State.
- Before I finally end my presentation, it would be important for me to inform Honorable Members of the enduring partnership Jigawa State Government enjoys with a number of Development Partners such as the UNICEF and FCDO (formerly DFID). In particular, I am pleased to mention that, despite ongoing review of FCDO Program portfolio, Jigawa State has remained a key partner State. Just recently, two new Programs funded by the FCDO were commenced in the State including ESPID (Expanding Social Protection for Inclusive Development) and PLANE (Partnership for Learning for All in Nigeria). I understand the ESPID Program succeeds CDGP which has provided enormous support to the State in the area of Social Protection to the extent that, we are now about to commence a State Cash Transfer Program. I would therefore, take this opportunity to express the profound gratitude of the People and Government of Jigawa State to these and all other Development Partners working in Jigawa State for the continued partnership and collaboration. As we begin the review of the State Comprehensive Development Framework, we would engage with all our Development Partners for them to share with the State both their short-, medium- and long-term strategic plans to enable us appropriately factor that into our own Strategic Development Plan – which would be the Third Edition of the CDF.
- Finally, I pray that Allah, the Beneficent the Merciful continue to guide us as we steer the State along the path of progress and development.I thank you very much and most sincerely for your raft attention.Long Live Jigawa State; Long Live the Federal Republic of Nigeria.