GOVERNOR UDOM EMMANUEL PRESENTS N582.1 BILLION PROPOSED ESTIMATE FOR 2022 FISCAL YEAR.

Williams Akpabio - information Unit (AKHA), Uyo

Governor Udom Emmanuel of Akwa Ibom State on Monday presented to the House of Assembly, N582.115 billion proposed budget estimate for 2022 fiscal year. 

The  budget christened the “Budget of Re-defining Standards”. with intention to take stock of achievements in the past six and half years and consolidate the gains of our achievements thus far, for sustainable expansion and growth.

According to the Extimate, Government proposed a total budgetary outlay of N582.115 billion for the 2022 Financial Year as against the approved revised provision of N598.975 of 2021 representing a decrease from the 2021 revised budget; thus:

Recurrent Expenditure                                            - N260.151 billion

Capital Expenditure                                                - ₦321.964 billion

Total                                                                     - ₦582.115 billion 

The Governor said that the budget is prepared in accordance with International Public Accounting standard (IPSAS) Accrual template. "Our intention is to roll out a manageable budget size that will help in closing the gap between the budgeted figures and the actual figures. In the course of preparing the year 2022 budget efficient costing tools such as Cost Benefit analysis, Cost effectiveness analysis and elasticity methods including moving averages were deployed."

In addition, he said that the 2021 Budget was named the “Budget of Economic Reconstruction” because it was tailored to bring the economy out of COVID-19 induced depression which brought about decreased Wages, low Productivity, and general economic downturn. 

The projected Recurrent Revenue for 2022 is estimated at ₦273.854 billion as against the approved revised provision of ₦260.003 billion representing 5% increase in revenue projection for the year 2022. the breakdown is as follows:

RECURRENT EXPENDITURE

For the 2022 Fiscal Year, Recurrent Expenditure which is proposed at ₦260.151 billion is made up of: 

i.) Personnel Cost -   ₦70.583 billion 

ii.) Overhead Cost -   ₦117.668 billion 

iii.) Social contribution & Benefit -   ₦20.500 billion 

iv.) Grant, Contribution & Subsidies -   ₦1.200 billion 

v.) Public Debt Service -   ₦50.200 billion 

Total Recurrent Expenditure -   ₦260.151 billion

CAPITAL EXPENDITURE  

The total Capital Receipts and Expenditure for the year 2022 is estimated at N321.964 billion as against the approved revised provision of N344.873 billion for 2021. A total projected Capital Receipts shows that N13.703 billion will be transferred from the Consolidated Revenue Fund, while the balance of N308.261 billion is to be realized as follows:

i.)  Opening Balance from 2021 account -   ₦26.000 billion 

ii.) Direct Credit Substitute/Receivable 

     Discounting facility -   ₦60.000 billion 

iii.) External Bank Loan -   ₦3.990 billion 

iv.) Grants -   ₦24.168 billion 

v.) Ecological Fund -   ₦25.000 billion 

vi.) Reimbursement from Federal Govt. on Roads -   ₦15.000 billion 

vii.) Investment Income -   ₦0.200 billion 

viii.) Other exceptional Income -   ₦15.000 billion 

ix.) Stabilization Account     -   ₦1.000 billion

x.) Refunds from Federal Govt/Federation Account -   ₦137.903 billion 

Total            -   ₦308.261 billion

SECTORAL ALLOCATION

The sectoral allocation of the total budget outlay of N582.115 billion for the year 2022 is presented as follows:

S/NO. SECTOR ALLOCATION 

N (Billion) PERCENTAGE OF ALLOCATION (%)

1 Administration

  132.565 22.8

2 Economic

  347.349 59.7

3 Law and Justice

  10.378 1.8

4 Regional

  1.991 0.3

5 Social

  89.832 15.4

  Total 582.115 100.0 

 

SOCIAL AND ECONOMIC INCLUSION

Mr. Emmanuel said that the intention of the Economic Inclusion Agenda is to allow money to trickle down to majority of homes, families and households in the State. Already, we have created valuable job opportunities through various programmes of Government in the Ministries of Agriculture, Education, Environment, Special Duties, Works, My entrepreneurial Goal Programme (MEGP), government supported industries and in the newly Aviation subsector of the State’s economy. However, Government will inject young and able hands into the State Civil Service in the year 2022 to put in place a more robust succession plan in the service and reduce the pressure on the state’s labour market. 

EDUCATION

Education, as a key component of the Human Capital Development will be pursued with utmost vigor which is the reason we recently recruited over 1000 teachers into System. It also bears repeating that education at the Primary and Secondary levels is free and compulsory. Our children must be made ready to avail themselves of the opportunities provided by the State government to ensure that every child in the household is educated. As a matter of strategic calculations, we subscribe to a technology-based education which has the capabilities to create jobs, align our children with the needs of the 21st Century technology driven economy, wealth creation and to promote industrialization. Cultism is primitive, barbaric and criminal; thus Government has zero tolerance for such anti-social tendencies.

Accordingly, Government will spare no efforts to eliminate cult activities in our primary and secondary schools. In furtherance of our action, all schools will be directed to set up a Comprehensive Security System (CSS) that will comprise members of the Parents – Teachers Association (PTA), the host communities and the police, to address the emerging security challenges in our schools. We must provide a convenient environment for the law-abiding students to learn. Any teacher found to engage or give a nod and a wink to cultism will be dismissed and prosecuted forthwith. Government will continue to improve facilities in all State-owned tertiary institutions in the year 2022. 

 

CIVIL SERVICE

The Civil Service will be re-orientated along the lines of customer-client relationship to be resilient, proactive and highly productive. Accordingly, all Permanent Secretaries will be directed to develop intra and inter MDAs collaboration mechanism to improve work performance in the year 2022. Opportunities will be given to our young graduates to serve in the Civil Service. Furthermore, the entire Civil Service will be computerized with the best ICT facilities in the world. 

 

HEALTH

Health is both a goal of development and a means to achieve the goals of higher productivity. More resources will be allocated in the year 2022 for further expansion of the primary, secondary and tertiary healthcare facilities as well as the training of our medical personnel. We will invest more in the provision of vaccines against the Delta variant of COVID-19; provide more public health facilities for ease of access to healthcare. Government will also continue to encourage Research and Development in the health sector in the year 2022. Henceforth, the training of paramedics and other health workers particularly Nurses and midwives will be done centrally in a collegiate system. We will provide resources to fight all forms of communicable and infectious diseases that erode the quality of lives of our people. 

 

INFRASTRUTURE

Our infrastructural renaissance will continue to receive critical attention. I have always said, for development anchored on Industrialization to take roots, we must invest heavily in Land, Air and Sea infrastructure. You will agree with me that we have achieved a lot in these subsectors as can be seen from the economically viable dualized roads we have constructed throughout the three senatorial districts. We will ensure that we complete our critical infrastructure as contained and outlined in the Completion Agenda.

 

SECURITY 

We will spare no efforts in ensuring that our State continues to enjoy the peace and development that we are nationally known for. Our security agencies have been great partners in this regard and we hope to continue to work hand in gloves to protect the lives and property of our citizens and, thus help attract more investors and tourists to our dear State.

 

RURAL DEVELOPMENT 

We will continue to encourage the development of our rural and riverine areas so as to stem the rural-urban migration through the provision of electricity, feeder roads and the promotion of mechanized agriculture.

 

AGRICULTURE

Agriculture will continue to take center stage in the implementation of 2022 Budget. This is to support our economic diversification policy through adequate provision of incentives to attract private investment in Agriculture, raise productivity and value addition capacity of the  sector, commoditizing the different produce, including food crops, cash crops, livestock, fisheries and other marine resources; creating a sustainable linkage to other sectors especially in the area of hydrocarbons and deepening of stakeholders involvement in the exploration of abundant rural resources for the economic benefits of all, including women, youth and other vulnerable groups. Indeed, we will continue to supply farm implements and other resources to women to support women in Agriculture. 

 

YOUTH AND SPORTS 

In the area of sports facilities; Government has provided funds in the year 2022 Budget to improve sports facilities in the State; strengthen youth development centers across the State, encourage private sector involvement in youths and sports development and provide sports facilities and other incentives to all sportsmen who demonstrate  adequate capabilities. We will continue to support our football clubs in the Nigerian Professional League. We salute Akwa United for winning the 2020 Nigerian Professional Football league.

 

AVIATION DEVELOPMENT

The Governor said Air infrastructure Ibom Air, today, is the pride of the Nation. Our goal in the aviation business is to be the best in Africa and ultimately one of the best in the world. Accordingly, Ibom Air has placed an order for the supply of 10 No. brand new Airbus (A220-300) series for delivery in 2022 and 2023 respectively. By this arrangement, the airline is fostering a long term partnership with the Airbus, the manufacturers of the planes and an announcement is expected at the Dubai Air Show in Nov. 2021. Also in 2022, Ibom Air will commence international flight in West Africa. 

Other activities at the Airport in the year 2022 will include; Construction of Hanger floor and completion of back of house facilities of the MRO at the Victor Attah International Airport. Provision has been made in the 2022 Budget to complete the Power Station and Taxi Way with Apron at the Airport.

 

HOSPITALITY AND TOURISM

In the year 2022, Government will devote resources to this subsector and improve facilities in designated tourist centers in the State. Furthermore, Hotels Management and Tourism Board will be directed to commence immediate identification, grading and registration of all hotels in Akwa Ibom State. Accordingly, the Board will work to enforce compliance to standards by all hotels management in the State. This is to ensure safety of customers and visitors to the State.

MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)

Micro, Small and Medium Enterprises (MSMEs) constitute the engine of growth of any economy anywhere in the world. The 2022 Budget is a consolidation of the 2021 Budget with greater emphasis on the clustering of Micro, Small and Medium Enterprises (MSMEs) for greater efficiency and effectiveness. This informs the provision for the establishment of clusters village for different vocations including ICT, craftsmen, footwear producers, textile production, designing and woodworks. To strengthen the MSMEs post COVID 19, the Ministry of Trade and Investment will implement the World Bank supported activities and interventions under N-CARES programme in the State. 

 

2022 BUDGET IMPLEMENTATION STRATEGIES ARE

 To realize the year 2022 Budget objectives, the following strategies shall be adopted by the State Government: 

 Attract potential investors and donor agencies to invest in the relevant and key sectors of the State economy and undertake robust human capital development. 

 Strengthen the industrial base of the State through the acceleration of industrialization and investment activities by providing enabling environment for the private sector to thrive. This will lead to the production of enough goods and services for domestic use as well as for export. 

 Improving on IGR by eliminating evasion in payment, wastages and leakages in collection and expenditure and developing tourism potentials. 

 Stimulate the Agricultural and Agro-allied industries to boost production of local farmers to ensure food sufficiency for local consumption, exports as well as the provision of raw materials for the industries. 

 Expand and improve infrastructure and services in Health-Care Delivery at Primary and Secondary levels. 

 Improve service delivery in the Educational sector, with emphasis on science and technology, as well as information and communication technology. 

 Continue to empower women and youth through capacity building, empowerment, skill acquisition and elimination of gender discrimination practices. 

 Enhance delivery of qualitative and prompt service by public servant, through effective intra and inter MDAs collaboration. 

 Provide recreational and sporting facilities to increase life expectancy boost sports development and ensure improved performance of the state representatives at local, National and International Sporting competitions. 

 Strengthen performance monitoring mechanism with central coordinating unit at the Ministry of Economic Development and Ibom Deep Seaport. 

 Improving fiscal transparency and accountability in all MDAs with emphasis on cost effectiveness in all programmes and projects of government. 

 Adopt the principles of cost minimization and waste reduction in all government activities. 

In his remark, The Speaker of Akwa Ibom State House of Assembly Rt. Hon. Aniekan Bassey in a bid to support the Completion Agenda of the present administration and for the people of the state has promised early passage of N582.115b budgetary outlay of 2022 Appropriation Bill, 

According to the Speaker's Remarks while receiving the Executive Governor of the State, Mr. Udom Emmanuel for  his 2022 Budget Presentation on Monday. "Your Excellency, at our inauguration as members of the Seventh Assembly, we promised to lead an Assembly that would make and sustain positive impacts on the lives of Akwa Ibom people. We will continue to live up to that responsibility.

"This House will painstakingly look at the nitty-gritty of the 2022 Budget Proposal for the purpose of transforming same for the benefits of our state and people. 

"Your Excellency, while thanking you for coming, I want to assure you that we will work diligently to ensure early passage of the 2022 Budget to aid the Completion Agenda of this administration and for the betterment of the people." 

The House however seized the opportunity to intimate the Governor and his team of the progress of the legislature which captured its Legislative, Representative and Oversight functions. 

"Over 72 Bills, 51 Motions and Resolutions have impressively pulled through various stages of legislative engagements in this Assembly. These Bills, Motions and Resolutions covered Finance, Education, Health, Security, Audit, Infrastructure, Community Development, Traffic Compliance and enforcement, Youth and Enterprise Development amongst others.

"Our members are completely in sync with their constituents. In fact, the empowerment of constituents through several fronts is a daily ritual for us. We have also made Capacity Development of Honourable Members a ritual." 

Further on, the House appealed for more support for Lawmakers and Assembly staff to attend local and international trainings for better work output. 

Also, the House solicited for some of the Bills awaiting Governor's signature to be given speedy executive assent.

 The Legislature promised to continue and intentionally geared their duties and responsibilities toward the progress of the state. 

Meanwhile, the Seventh Assembly commended the Governor and his Economic Team for the painstaking job in putting together the 2022 Budget proposal which economic intervention touches Education, Security, Health, Tourism, and Infrastructure.

The State Legislature expressed confidence that the 2022 Financial Estimates will consolidate on the 2021 Budget for the delivery of democratic dividends to the people of Akwa Ibom State. 

Meanwhile, the House has adjourned plenary till November 26, 2021 by 10:00am.