READ FULL TEXT OF FINTIRI'S BUDGET SOEECH: The 2023 Budget of Consolidation

Daily Rendezvous 

The 2023 Budget of Consolidation 

Address by His Excellency, Rt. Hon. Ahmadu Umaru Fintiri at the presentation of the State’s 2022 Draft budget to the Adamawa State House of Assembly, 

November, 2022. 

RT. Honourable Speaker, 

Honourable Members, 

1. I am honoured, once again, to be in this hallowed Chamber which is the fortress of Democracy.  This is a moment I eagerly look forward to annually. Besides the fulfillment of this constitutional duty, is the beautiful memory the ambience of this Chamber brings to me whenever I am around. This is where a substantial part of my political story was sharpened. It is therefore gratifying that we are statutorily meeting in this manner, in continuous service to our people.   

2. Mr. Speaker, Honourable Members, I am indeed glad to present the 2023 budget proposal to this Honourable House. This is the fourth time that this House is according us the privilege to perform this constitutional duty since the inception of this administration. It is indeed an emotional moment marking the last time I will be performing this duty as we close the first tenure, Inshaa’Allah, of our stewardship to the people of Adamawa State. As distinct organs, I must acknowledge the productive support and partnership we have mutually accorded each other in the discharge of our duties since 2019.   

3. Mr. Speaker, Honourable Members, I must commend and appreciate the support of this Honourable House for the patriotic partnership accorded us in enacting and amending the required legislations to drive home the various reform initiatives and governance innovations of this government. In the last three years, together, we have enacted and amended over 35 Laws to institutionalize reforms in public finances, fiscal responsibility, Local Government, procurement, taxation, revenue enhancement, teachers’ service, health insurance, poverty alleviation and wealth creation, peace and conflict resolution, environmental protection, violence against persons, legislative funds management, child welfare and protection, district creation, among others. These laws have provided the necessary comfort and legitimate sustainability framework for the lifechanging reforms we are prosecuting.   

4. Mr. Speaker, Honourable Members, the 2023 Budget is coming at a time when we are preparing for the next elections and are required to give a good account of our stewardship since we assumed leadership. The 2019 election was a watershed moment in the history of Adamawa State. It marked the resolve of the people to replace pessimism with optimism; Lethargy with energy; superficiality with substance, and desolation with vision. Today, we are at a point where by way of reflection, must admit that the wisdom of the greater number of the electorates of Adamawa State is indeed a time-tested wisdom. Adamawa State has moved away from the inglorious era which was characterized by the ills of misgovernance, hopelessness and lack of vision to a governance system that upholds purposefulness, courage and vision. Today, we have progressed the State away from the occupation of an infamous place among the last ten States with the lowest development index ranking to a top position among the ten best States in the federation.   

5. Mr. Speaker, Honourable Members, with all modesty, we have every reason to conclude that the last three years has been monumental in the development of our dear State. Thus, the policy void that hitherto, existed has been supplanted by vision and clear direction, institutional inertia has been replaced with dynamism, and empty rhetoric, with concrete action. 

The Peoples’ Democratic Party (PDP) - led Government in Adamawa State has proved that it remains the best, if not the only, alternative. As a government we are battened down in our resolve to serve the people and at the same time to ensure that the lives of all Adamawa citizens are meaningfully, demonstrably, and lastingly, improved. Forever faithful to the timeless refrain of our governance philosophy of No one is left behind and nothing is left untouched – we are relentless in our commitment to a path of security, unity and prosperity of our people.  Nowhere is this better articulated than in our 11-Point Agenda. This governance agenda is not a fancy conjecture but ideas that are rooted in deeply held ideals and hard assessment of what is required to build a good society, to empower our people and overcome the legacy of decades of neglect and failures in delivering the public good. This is well aligned with the manifesto of our great party – the PDP.  

 

Financial Reengineering  

6. Mr. Speaker, Honourable Members, upon assumption of office in 2019, we took up the task of unbundling the financial crunch and restoration of fiscal discipline. We deployed all our ingenuity and re-engineered the financial mesh of the State. This financial re-engineering was able to lessen the weight of the debt burden on our shoulders and provided us with the required oxygen to breath and unleash our energy on other sectors. We went on to key reform drivers such as: 

• Reduction in recurrent expenditure: we instituted deliberate measure to eliminate waste and control excess spending in public finance. This has reduced monthly operational charges to 40% by Ministries, Parastatals and Agencies; which brought a significant reduction in recurrent expenditure and cost of governance. This feat remains unprecedented in the history of the State and the Nation. It is a record that is acknowledged and commended by reputable rating agencies.  

• Adamawa State Agricbusiness Development Programme (ADAS-P): Working with key stakeholders and technical partners, we innovated an agricbusiness plan which is our thought-out window for economic revival. It is a carefully articulated exit route from overdependence on oil money from FAAC to run governance. The ADAS programme is an end-to-end economic exit plan which requires the support and goodwill of every citizen that wishes Adamawa State well.  It is expected to grow our GDP from its current level of 1.7 trillion to 7.8 trillion Naira. Above all, it will raise our IGR from 8.3 billion in 2020 to 52 billion Naira in 10 years’ time. If we are looking for the ideal deal-breaker for Adamawa State, this indeed is the real one.   

• We have innovated a unique product which is the 100 Billion Naira Agribusiness Bond. We have so far, drown down the first series of 25 Billion Naira with a resounding success and the remaining 75 Billion Naira is on our shelf in the Capital Market. Mr. Speaker, as of today, Adamawa State is the first and only State to float and access an Agribusiness Bond from the Nigerian Capital Market. Our investment rating is BBB+ and the investment climate looks handsomely bright. We have so far, deployed a substantial part of the 25 billion Naira drown into the financing of our infrastructural projects, upgrade of 12 livestock and produce markets across the State and finalized the framework for the implementation of the Credit Guarantee Scheme to build the capacity of our local merchants and provide the necessary comfort for financial institutions to grant credit facilities to willing investors and smallholder farmers in the State.     

• Enhanced Revenue Optimization System in Board of Internal Revenue:  Mr. Speaker, we are prosecuting the required reforms in our internal revenue service. With the necessary laws, we made tax reviews, harmonized revenue accounts and repositioned and strengthened our Board of Internal Revenue to discharge its mandate rightly. We have deployed the necessary ingenuity and technology in tax accounting and audit, revenue collection and risk mitigations. This is paying faster than we thought. For example, Mr. Speaker, Honourable Members, in 2019, the average collection of revenue from the livestock and produce corridor alone was a paltry 30 Million Naira per annum, making an average collection of 2.5 Million Naira per month, today, we have graduated the revenue collection to 45 Million Naira per month; going by this trajectory, we are headed to collecting 540 Million Naira or more from this single corridor alone. Getting the reform right in this sector is very important not only to the government but a fundamental prerequisite for the survival of the State. I appeal to all citizens to support this patriotic cause. As a government, I assure you that every dime collected will be judiciously utilized in the overall development of the State. we have demonstrated a commitment to this assurance by adopting   a tax proceed discipline which ties the IGR to the service of facilities accessed for development. This is a glaring departure from the past where the IGR is seen as a personal booty of political office holders. At least tax payers can now see their money at work.       

• To engender transparency and accountability, we have adopted the 

Treasury Single Account System (TSA) to manage Revenue Collection and Accounting Processes, Capital and Recurrent Expenditure Payments. This helped us to record all government inflows of revenues from IGR, FAAC and other sources.  

7. Mr. speaker, Honourable Members, in the last three years, we have demonstrated a commitment to fiscal and budgetary discipline while trying to be as economically realistic as possible. This fiscal realism is what led to the budget size of N244 Billion earlier approved by our predecessors in 2019 to be reduced to N143 Billion for 2020 which was considered fiscally realistic even for 2019. Subsequently, in 2021 the budget size was N140 Billion in view of the COVID-19 Pandemic and its attendant global economic uncertainties.  

8. Mr. Speaker, toward the end of 2021, with the world showing symptoms of recovery from the shocks of COVID-19 and a hope for global economic rebound, we presented a budget of One Hundred and Sixty-three Billion, Six Hundred and Twenty-nine Million, Nine Hundred and Ten Thousand, Forty Naira (N163,629,910,040.00), for the 2022 fiscal year. All these were necessitated by the amount of revenue generated internally, Federation accounts, Capital receipts, Grants and other sources. In the service of our people, we are so much in a careful but calculated rush to ensure no one is left behind and nothing is left untouched. Even as we do that, we have not lost sight of the need to have a realistic Budget where expenditures are carefully matched against revenue. 

 

No one is left Behind and Nothing is left untouched  

9. Mr. Speaker, Honourable Members, the last three years have seen us accomplishing so much in ensuring no one is left behind and nothing is left untouched across many sectors in Adamawa State. Time will not allow me to mention all but I will highlight a few.   

10. In the last three years, we have invested heavily in the peace and security of our people. We have sustained the campaign for peaceful coexistence in the State. We reclaimed the trust and goodwill in Government, which was previously wasted. This reduced the heated tension among and between our ethnic nationalities and identity groupings. We hosted a security summit and redesigned the security architecture of the State to accommodate local intelligence and incorporated vigilantes and local hunters in the frontlines.  

11. Mr. Speaker, Honourable Members, even though the peace enterprise remains a herculean task especially at this time in our national lives; today, it is safe to allude that Adamawa State is one of the safest States to live and do business in, in the Federation. This has placed us well to attract investors into the State and they are coming in droves. This has been attested to even by the Nigerian Investment Promotion Council (NIPC), the most authoritative institution for rating investment ranking in the country.  

12. In the Education and Human Capital Development sector, apart from lessening the economic burden of our impoverished parents by annually saving them over ₦2bn in fees through the introduction of tuition-free education in our public schools, we have remained faithfully committed to the payment of WAEC and NECO fees for our final year students in the public schools; school feeding system with balanced diet was reintroduced in our boarding schools and foreign scholarship awarded to our Students currently studying abroad. We have equally sustained regular annual bursaries to indigent students studying in the various tertiary institutions within the country and have commenced the complete renovation of 10 legacy secondary schools across the State.  

13. Mr. Speaker, Honourable Members, these investments and many more are aimed at encouraging school enrolment, retention and progression thereby ensuring no child is left behind. Today, we are happy that the return on investment is yielding faster than we thought with the surge in enrolment and the overall performance in national examinations. The performance of our students who have 5 credits and above including the basic subjects of English Language and Mathematics in the 2022 WAEC alone stood at over 75% and over 85% in NECO in the same subjects. What this means is that the combined performance of our students in these national examinations is above 90%; it goes on to demonstrate that the greater percentage of these students have the requisite qualification to transit to any tertiary institutions of their choices. This feat is unprecedented in the combined history of both Adamawa State and defunct Gongola State.     

14. In the Health Sector, we are building 5 brand new cottage hospitals and Staff Quarters in Lamurde, Shelleng, Demsa, Girei and Gombi; it is on record that no government has taken this bold step since the return to democracy in 1999 in Adamawa State. Successive governments have avoided this path because building a new hospital is not a one-off project. Beside the hospital structures are the twin burden of equipment/furniture and Staffing. 

15. Mr. Speaker, Honourable Members, it may interest you to note that the structures (hospital building and Staff quarters) are nearing completion, the equipment/furniture have started arriving and we have commenced the process of recruiting staff to man the hospitals. 

16. We have rehabilitated and upgraded the Cottage hospitals in Song and Fufore and have almost completed the one at Dumne, which has been abandoned for over Four decades.  

17. We are also rehabilitating all the Generals Hospitals in Ganye, Numan, and Mubi to cope with the referrals from the cottage hospitals.  

18. Mr. Speaker, Honourable Members, while addressing the Secondary Health Care tier, we have also invested enough resources in the Primary Health Care tier, where we have constructed 8 new Primary Health Care Centres, renovated 17 existing others and upgraded 7 Centers and provided fencing for 17 Centers across the State. We have also completed the 3 Centers we inherited from our predecessors. In addition, 10 new 

Health Posts, 2 Laboratories and over 30 VIP latrines were constructed. We have equally recruited Nurses and Doctors to man the existing hospitals. 

19. We have established the State Health Insurance Scheme which is aimed at supporting low-income earners and vulnerable people in the State. Under this Scheme, children under 5 years, pregnant mothers and the aged’ above 65 years will receive free medical attention.  

20. Mr. Speaker, Honourable Members, I am happy to tell you that over 70,000 people have already been enrolled into the Scheme and the enrolment campaign is ongoing. Of this number, about 60% are people from the poor and vulnerable households who ordinarily are confronted with the challenges of accessing quality medical services.  

21. Mr. Speaker, Honourable Members, the cheering news from this investment is that the Health Indicators from the Federal Ministry of Health, places Adamawa State on top with the best Health Indices in the Northeast.  

22. In the Infrastructure Sector, we are working hard to bridge the gap. Upon assumption of duty in 2019, we launched an aggressive urban renewal campaign which is progressing with the required vigour. At the inception, we took stock of all the ongoing urban roads initiated by our predecessors. Some of these projects included: Pella-Maiha Road, YoldePate Sabon Pegi Road, Kiri-Shelleng Road, internal roads and storm water drains in Adamawa State University, 4 Span Bridge in Song, Mubi Township roads Phase, Old bypass road in Gombi, Manpaya road in Uba, Mayo-Inne and Lekki Taba Streets in Jimeta. These projects, except the ones in Uba and Pella, have since been completed and fully paid for.  

23. Mr. Speaker, Honourable Members, while demonstrating the right commitment to the completion of all the projects initiated by our predecessors, we went on, to launch an aggressive but coordinated urban renewal campaign which is steadily coming to a full cycle. Between 2019 and 2022, we were able to commission standard asphalt finished roads complete with concrete-lined drains in both Yola town and Jimeta. In Yola town, the other half of the Metropolis that make-up the State capital, we were able to complete and commission the Zumo Street, Doctors Quarters Road, Mafia Quarters Road and Mbamba Street. Linking Yola town with Jimeta through an alternative route, we constructed the second road which is the Nyibango-Yolde Pate Road with 2 bridges. We have recently flagged off the construction of Bole Road which is one key project I hold so dear.   

24. Mr. Speaker, Honourable Members, to respond to the housing deficit in the State, we are constructing a 1,000 Units Mass Housing at Malkohi, in Yola South. I am happy to announce that works have reached advanced stage on the Housing estate which is adjudged to be the largest Housing Programmme by a single administration in the annals of Adamawa State. We are determined to complete and commission this project and ensure that our population is sheltered and our people, particularly, Civil Servants are proud owners of houses they can afford with friendly mortgage terms.  

25. On the Jimeta flank of our State Capital, we were able to re-construct and commission the Weekly Scope Road which, I had the honour of renaming as Gambo Jimeta Road, Mustapha Ismail Extension, Dougirie Lane Road, Mayo-Inne Street, Jalingo Street Road, Lekki Tabba street, Falu Road and Links, Old Government House Road and Links, Bachure Road which I equally renamed Air Commodore David Jonah Jang Road and Lagos Street Road which I also renamed Brigadier DK Dzirkushu Road. In Girei 

Local Government, we have also ended the nightmare of commuters along 

the ATV – Badarissa – NYSC Road by completing and commissioning the road. As I speak to you, works are ongoing on the Mambila Street, Jambutu Street, Nepa Road, Benue Street and links, Vunoklang-NJabore Road and the reconstruction of road network within the Bekaji Estate. The Lamido Aliyu Musdafa Bridge and the Grade interchange with underpass at Total junction and Police roundabout respectively have remained spectacular signature projects in the State capital and we are about to start another one at Mubi Road-about. These three projects are not merely for the beautification of the State capital but futuristic, so as to handle the projected vehicular traffic at these traffic node points in not-too-distant time when the State cannot afford the huge cost of implementing them.  

26. Mr. Speaker, Honourable Members, the urban renewal campaign has been extended to Hong, Madagali, Numan, Ganye, Jada Guyuk, Mubi-North, Mubi -South, Demsa, and Lamurde. We have equally lightened-up most of the urban roads with solar powered light. It is within our strategic plan that every part of Adamawa State would experience its fair share of the campaign.  

27. We have recorded tremendous success in the provision of water across the State, especially the Gude water project, Gurin, Malabu, Wuro Bokki and Dasin Hausa water projects in collaborations with the EU and the 8 Water Schemes in Gombi, Garkida, Hong, Pella, Uba, Michika, Gulak and Maiha which were put in place in partnership with MCRP and World 

Bank; all have reached an advanced stage. We have the rehabilitations of Yola Water Treatment Plant, 10 km pipe network in Jimeta in collaboration with Federal Ministry of Water Resources, Bekaji water scheme and Yolde Pate and Jippu Jam. Similarly, we have constructed six solar powered Boreholes in Jada and Guyuk and 87 new hand pump boreholes and procured 84 new generators to power the boreholes.  

28. Mr. Speaker, Honourable Members, we are opening up the rural areas through aggressive rural infrastructure campaign; lighting up communities by providing electricity to towns hitherto not connected to the national grid or whose facilities were destroyed especially in the insurgents’ devastated areas. We have leveraged our partnership with the Rural Access and Mobility Programme (RAMP II) supported by world Bank and constructed over 347 km of Rural roads across the State. Key among them are: Yolde Pate-New Prison to Yadim, Parda Muninga – Fufore, Kwanan yaji – Amdur, Longa Ewa – Wuro Yombe, Hong – Mujili – Kuva Gaya, Mayo Nguli – Manjaken – Salma, Numan – Bare, Shelleng – Bakta, Toungo – Kiri, Polewire – Ndikon, Ngurore – Mayobelwa – Gongoshi.    The rural electrification project has equally reconnected communities of Michika and Madagali LGAs to the National grid after five years of darkness due to destruction by Boko Haram Insurgents. We have also connected Uba/Mishara in Hong LGA, IDP Camp Sangere/Jabbi lamba in Girei LGA, Fadama-Rake in Hong LGA, Bahuli in Mubi-North LGA. We have awarded contracts for the electrification of Kpasham, Bille and Dong in Demsa LGA and that of So’o and Mapeo in Jada LGA. We have made history by connecting Toungo LGA to the National Grid.  

29. Mr. Speaker, Honourable Members, today, we have bridged the infrastructure gap so fast that Adamawa State is emerging as one of the wonders of urban renewal in this century. This uncommon feat has earned us (all) a mark of recognition in the country and an Award of Excellence in (State) infrastructure even from the Federal Government. 

30. Youths’ development and empowerment have been elevated to an institutional level by creating the Ministry of Entrepreneurship Development and an Agency of Poverty Alleviation and Wealth Creation to provide the right skills for our teaming youths and prepare them for selfreliance. So far over 20,000 youths have been trained in various skills ranging from ICT, entrepreneurship and related trades.  The youths and women who have acquired these skills have formed cooperative societies and are making compulsory savings to run businesses at cooperative level.   This will create self-reliance, reduce dependency and stimulate the development of Micro-small and Medium Enterprises in the State. We have also resuscitated our Technical and Vocational Skills Acquisition Centers across the State and enrolment of trainees have commenced in some of them. 

31. Commerce, Industries and Entrepreneurship - We inherited a State uncharitably described as a “Civil Service State” with limited commercial and industrial activities. We set out to change the narrative by reviewing our policies on ease of doing business and improving on the general infrastructure in the State.  This modest effort is paying off as the State is today ranked among the five leading States in the attraction of investment in the country.     

32. Mr. Speaker, Honourable Members, I have taken the pain to run us through the details of some of our achievements since inception so that this chamber can better appreciate the good work it is equally doing annually as we come for this ritual. From 2019, we have come here every year to present our proposals, you have been partners in the craft of what our people need and deserve; we have consistently deployed the annual budget as a fundamental policy tool for not only signaling change but implementing the required change. We have thus far fared reasonably well on the 11-Point Agenda. Moving forward beyond 2023, we have for strategic reason, recalibrated the governance policy direction into an 8 – Point Agenda which we believe is adequate to consolidate on our gains and nurture the Adamawa of our collective dreams.  

REVIEW OF THE 2022 BUDGET 

33. Mr. Speaker, Honourable Members, before I present the details of the 2023 Proposed Annual Appropriation Bill, it is customary to review the performance of the subsisting Approved Budget in terms of the Actual Revenue accruals to the State and in particular on what they were expended on within the last three quarters of the financial year.  

34. This will continue to mark our demonstration of transparency and accountability for our stewardship in the State. This review as a matter of tradition is also meant to reflect and evaluate past performances, correct the shortfalls and consolidate on our successes in order to move the State forward. 

35. Mr. Speaker, Hon. Members, on this note, I want to refresh your memories that this Honourable Assembly, early this year approved the total sum of N163,629,910,040.00 billion for the 2022 fiscal year to finance both Recurrent and Capital Development Programmes of the State. Out of this, the sum of N98,855,243,040 billion which represents 60% of the total Approved Annual Budget Estimate was earmarked for Recurrent Services and N64,774,667,000.00 billion which represents 40% of the total Approved Budget was earmarked for Capital Development Programme and Services in the State for the fiscal year.  

36. Mr. Speaker, Hon. Members, during the implementation of 2022 Budget, the sum of 47,769,936,924.99 was expended from January to September, 2022 which represent 48.3% of recurrent expenditure and the sum of 17,723,289,190.53 representing 27.45% of the Capital Expenditure within the same period. 

37. In this regard therefore going by the trend of recurrent expenditure before the end of the year, the recurrent require the sum of 200,000.00 million to augment excess recurrent expenditure that deem it necessary to vire from Personnel to Overhead and this necessitated the change of recurrent expenditure to 99,055,243,040.00 Billion and Capital Expenditure to 64,574,667.00 that was passed by this honorable House at the end of October, 2022. 

38. The major policy objectives of the 2022 Budget were: 

i. in line with the Vision 20:2030 National Perspectives Plan, as well as the Sustainable Development Goals that will continue to pursue the anticipated rapid economic growth of our dear State. 

ii. it was also in line with the Federal Government’s directives that the state will continue with the International Public Sector Accounting Standards (IPSAS) and State Fiscal Transparency and Accountability (SFTAS) Programme for Result which is in full implementation in the State. 

iii. Government among other measures will continue to ensure that some of the State’s untapped sources of Internally Generated Revenue are harnessed, and adequately tapped towards the improvement of our Revenue generation in the State within the fiscal year. 

 

Macroeconomic Objectives, Policies and Strategies for 2023  

39. Mr. Speaker, we have over the years muddled through economically strenuous era which was worsen by various waves of COVID-19 and attendant damage to our economy. To move forward, this Administration plans to achieve the following macroeconomic objectives for 2023: Increase Internally Generated Revenue and reduce the fiscal deficit.  

40. Mr. Speaker, the strategy to achieve these objectives will be founded on four thematic areas. Thus:  Economic Transformation and Job Creation; Human and Social Development; Environmental Sustainability; and Good Governance Environment.  

Economic Transformation and Job Creation  

41. Mr. Speaker, I have come to this august House with a Budget that begins our journey towards economic transformation. This is a journey of paying very special attention to getting our economy to grow strongly year after year. It means paying more attention to the details of ADAS Programme whose broad objectives are the formalization and incentivization of businesses in the agricultural value chain to drive revenue generation and provide Social Investment. This will ultimately lead to growth, end poverty, increase wealth and create jobs.    

42. Mr. Speaker, it is this growth that will lead to more taxes being collected to pay for the health of our people and the education of our children. It will be this growth that will enable us to pay our debts and clear arrears without excessively tightening our belts. 

43. Mr. Speaker, economic transformation will entail shifting resources to activities of higher productivity both within and across sectors of the economy.   

Agriculture 

44. Mr. Speaker, Hon. Members, agriculture presents us with the best opportunity to attain growth especially that the majority of our people, about 60 percent, are dependent on it. This sector has a relatively short gestation period with low capital requirements, readily available labour, abundant water resources and the blessing of arable land.  We shall implement a new comprehensive agriculture support programme in 2023. This programme will be cost effective, better targeted and equitable across beneficiaries. It will also support the supply of quality inputs, attain diversification of crops as well as increase production and productivity.  

45. Mr. Speaker, it is only right that we continue to support our smallscale farmers for the reasons that we all know. But we can do more in agriculture by promoting large scale production for both local and export markets. The markets can employ many people at different levels of skills, create associated business opportunities, support agroindustry, support viable out-grower schemes and earn foreign exchange.   

46. Mr. Speaker, to reduce dependence on rain-fed agriculture, which often times comes with associated risk of nature such as flooding as it happened this year, Government will continue to encourage and support irrigation farming. Through our Credit Guarantee Scheme, we will also guarantee concessional financing for irrigation equipment for small-scale farmers.   

47. Mr. Speaker, in line with the Fresh Air agenda of alleviating poverty, we will empower youth and female headed households through livestock stocking and restocking as well as support for livestock infrastructure.  

 

Human Capital and Social Development 

48. Mr. Speaker, we must put people at the centre of development. This is not so for its own sake. It is good economics because it is now common knowledge that a society with skilled and healthy people can achieve development even if it has no natural resources. We have, therefore, made significant allocations to education, skills development and health. We have scaled up allocations to provision of social safety nets and poverty reduction. 

 

Environmental Sustainability  

49. Mr. Speaker, the Fresh Air Government places environmental sustainability at the centre of all our development efforts. To bequeath future generations with a better environment, we shall continue to focus on environmental sustainability, strengthen climate change adaptation and mitigation, promote sustainable natural resources management and enhance the coverage of early warning systems. We shall recommit to greening the economy. We will promote innovative financing for climate change interventions. This will be done through mechanisms such as the use of Green Bonds, promotion of carbon trading and putting in place legislation that establishes a State Climate Change Fund.   

 

Good Governance 

50. Mr. Speaker, we need to create a good governance environment in which the conduct of public affairs is done in a responsible, accountable and transparent manner. This is the commitment of the Fresh Air Administration. Our priorities in this regard will be the fight against corruption, strengthen the rule of law and ensure sound public financial management. We will also take resources closer to the people through decentralisation. We have so far, conferred financial autonomy to our Local Governments and the two arms of government which are the legislature and the Judiciary. We shall continue on this noble course.    

 

THE 2023 PROPOSED BUDGET. 

i. Mr. Speaker, Honourable Members, you would recall that the focus of our last Budget was on stabilization and to build both Human and Capital Development programmes that fall within the priority attention of this administration. We believe that most of these programmes that were completed and some ongoing have started making positive impact on the lives of our people. In line with this policy thrust and the continued determination of this administration to pursue with greater vigour the emancipation of the State economy, 

the 2023 Proposed Budget has been carefully packaged to consolidate on the steady gains recorded in the 2021 and 2022 Budgets.  

ii. Mr. Speaker, Hon. Members, it is against this background that we tag the 2023 budget as the Budget of Consolidation. It is formulated in line with the 2023-2025 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper as a matter of Economic Planning Policy as earlier submitted before this Honourable House.  iii. The 2023 – 2025 MTEF and Fiscal Strategy Paper sets out the parameters for the 2023 budget as follows: 

i. Oil price benchmark of USD70 per barrel.  

ii. Daily oil production estimate of 1.6 million barrel  iii.  Exchange rate of ₦435.52 per USD iv.  Projected GDP growth rate of 3.75% and 17.16% inflation rate.  

iv. Mr. Speaker, Hon. Members, the 2023 Bill highlights the draft estimates of the State’s Revenue and Expenditure and provides broad outline of the plans and programmes this administration intends to implement with zeal and commitment to enhance the socio-economic development of our dear State.  

v. Accordingly, the State Government has proposed a Budget of One Hundred and Seventy-five Billion, Nineteen Million, Fifty-four thousand and Sixty Naira (N175,019,054,060.00), for its Projects and programmes in the 2023 Fiscal year. A summary of the estimates in terms of revenue and expenditure is projected as follows: 

 

 

 

REVENUE  

022000700100/11010101 

STATUTORY ALLOCATION  54,311,270,166.67 

022000700100/11010201 

SHARE OF VAT 

30,641,989,004.00 

022000700100/11010303 

EXCESS CRUDE 

1,500,000,000.00 

022000700100/11010401 

02200700100/11000000 

 

STAMP DUTY 

Ecological fund  2,000,000,000.00 

3,000,000,000.00 

022000700100/11010407 

EXCHANGE RATE DIFFERENCE  2,615,000,000.00 

022000700100/11010408 

STABILIZATION FUND RECEIPTS  2,500,000,000.00 

022000700100/11010410 

NON-OIL REVENUE 

3,000,000,000.00 

022000700100/11010411 

SUPPORT FUND  (FGN  2,000,000,000.00 

INERVENTION) 

022000800100/12010111 

INTERNALLY GENERATED  18,240,000,000.00 

REVENUE 

000000000000/00000000  CAPITAL  45,210,794,889.33 

RECEIPT(INTERNAL/EXTERNAL) 

 

EXPENDITURE 

(a) Personnel                 

33,757,767,640.00  

(b) Overhead                 

62,749,292,797.00  

 (c)  Social Benefits                    

8,504,372,000.00  

(d) Capital Expenditure  70,007,621,623.00 

Total  N175,019,054,060.00 

 

vi. The Proposed Budget of N175,019,054,060.00 for 2023 Fiscal year is made up of recurrent expenditure of 105,011,432,436.00 Billion representing 60% of the total Budget while the balance of 70,007,621,624.00 Billion is for Capital development projects representing 40%. Government will continue to ensure that all ongoing projects, especially the ones started by this Administration, are completed which is in line with the principles of this administration and the aspirations of our people. 

vii. Mr. Speaker, Honourable Members, let me briefly unfold our planned strategies on refocusing the State priorities in line with the projected revenue and expenditure to achieve our developmental goals. 

 

INTERNALLY GENERATED REVENUE 

viii. The Board of Internal Revenue has been rejuvenated and is being reformed and we have noticed appreciable improvement in our monthly revenue collections and other economic setbacks. The current situation where petroleum products contribute paltry amounts to the Federation Account indicates that only States that have improved their IGR can survive in the very near future. Some of the outstanding achievements of the State BIRS includes;  

• The revenue laws have been reviewed and passed into law to address grey areas of revenue collections. This has paved way for increased revenue generation in the State.  

• All revenue titles in the state were codified and aligned to the standard practice of International Public Sector Accounting Standard (IPSAS). This has further aided the revenue Agency to block leakages as non performing revenues are investigated. 

• The board had successfully implemented the statutory rate of fees and levies applicable by law to livestock revenue collections. 

• The board had also successfully implemented tax programs that reduced hardship on tax payers and also offered online renewal of Vehicle licenses.  

• The board will through property tax, when properly implemented enhance the revenue base of the State. 

CAPITAL RECEIPTS 

ix. These are made up of Grants, Aids, loans etc. Government is however optimistic that substantial funds will be received in the next financial year through the World Bank programmes and other funding agencies. Government also intends to use internal loans to finance some of the priority projects that have high revenue yielding potentials. 

RECURRENT EXPENDITURE 

x. The Government will continue to look into measures and modalities of how to offset the backlog of Gratuity and Pensions of retired Civil Servants within the next fiscal year and to ensure prompt payment of Personnel Cost and release of Overhead cost. 

CAPITAL EXPENDITURE 

xi. Mr. Speaker, Hon. Members, in 2022, Government budgeted the sum of 64,774,667,000.00 Billion for Capital expenditure and was later Revised to 64,574,667,000.00. However, only N17,723,289,190.59 Billion was expended as at 31st August, 2022 on priority projects and programmes in Works, Education, Health, Agriculture, General Administration, etc. All of these projects have direct bearing on the lives of our people. Government has proposed to spend the sum of 70,007,621,624.00  on Capital Expenditure in 2023 Fiscal year.  

xii. Mr. Speaker, the highlights of the capital expenditure side of the budget are execution on key projects which will add value to the lives and well-being of our people. Prominent among these projects are: the construction of a Super Highway from FGGC Yola to Yola-Town through Yolde-Pate; establishment and construction of three Mega Secondary schools (One in each of the senatorial districts which will serve as Special schools for the most talented of our students; establishment of High-tech Vocational Training Centers to serve as Information technology skill incubation hub for the development of our Youths.    

xiii. At this point Mr. Speaker, Hon. Members, it is now my singular honour to lay before this honourable House, a budget proposal of Seventyfive Billion, Nineteen Million, fifty-four thousand and Sixty Naira (N175,019,054,060.00), Tagged Budget of Consolidation, for the year 2023 ending 31st December, for the kind consideration of this Honourable House. 

I thank you all. 

God Bless Adamawa State. 

God Bless the Federal Republic of Nigeria