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For the Records: 2022 Adamawa Appropriation Bill As Presented to state house of assembly by Gov Fintiri

Adamawa State 2022 Appropriation Bill: Budget Speech By His Excellency, Governor Ahmadu Umaru Fintiri To The Adamawa State House Of Assembly On 4th November 2022

RT. Honourable Speaker,

Honourable Members,

I am highly delighted and honoured to once again grace this hallowed Chamber. This is a Chamber I hold in great respect and honour, not only because of its sanctity as a statutory hatchery of law in a democracy but because it brings back a bunch of cherished memories, I hold dear to my heart in my career as a leader and a politician. This is where I was refined and polished to lead. To me, personally, this chamber is an Alma mater whose badge I shall continue to carry on my chest with the best of pride.

Mr. Speaker, Honourable Members, I am indeed glad to present the 2022 budget proposal to this Honourable House. This is the third Appropriation Bill since the inception of this administration. For my administration, this privilege should not be seen as an occasion for the mere ritual of tabling proposed appropriation but an opportunity to acknowledge and appreciate the productive partnership we have collectively nurtured as distinct organs of government with right partnership for the delivery of good governance to the good citizens of Adamawa State. With your support and cooperation, over the last two years, we have come this far as a government committed to changing the narrative of the State and improving the lives and livelihood of our people. These I believe are the sacred trusts we have collectively sworn to on assumption of office.

We have introduced cogent reforms in governance and we are seeing tangible results in all the sectors as enshrined in our 11-point agenda. Our governance agenda is not 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 public goods. This governance agenda is poignantly captured and expressed in our emerging slogan of “No one is Left behind and Nothing is left Untouched”, which is now becoming popular across the State.

Upon assumption of office in 2019, we came in handy with the 11 Point Agenda which is now the compass of the administration. The first task was to unbundle the financial crunch and restore fiscal discipline. This is the most significant, though intangible, part of our reform. Unfortunately, it is the most unappreciated by outsiders because it is not a physical project that can be touched and commissioned. 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 the cost of running government
• Prudent management of the scarce government resources
• Enhanced Revenue Optimization System
• Meticulous insurance of Value for Money
• Improved Payroll Management systems
• Respected all commitments and restructured the debt obligations of our predecessors, and
• Constituted a robust cabinet and good economic management team. While instituting a culture of discipline around these key drivers, to engender transparency and accountability, we submitted completely to 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.

Today as I speak to you, we have been able to record unprecedented gains in the reduction of overhead cost. From an overhead cost of 26 Billion Naira in 2019 to 18 Billion Naira in 2021. Unarguably, we are the first to achieve this in Nigeria, in recent times. This, our reputable credit rating agency found encouraging especially in this era of a galloping inflation and the global pandemic caused by the Covid-19.

We achieved discipline in our budgetary process and implementation. This 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 more realistic even for 2019. Subsequently, in 2021 the budget size was N140 Billion in view of the COVID-19 Pandemic, this is necessitated by the amount of revenue generated internally, Federation accounts, Capital receipts, grants and other sources. Our desire is to have a realistic Budget where expenditures are matched against carefully planned and realistically projected revenue.

We equally achieved prompt payment of Salaries and Pension of workers and retirees. We have been faithful to our commitment to pay the wages and pensions of our workers as at when due; we are among the first state to implement the upward review of minimum wages which was passed at N30,0000.00. We not only implemented the minimum wage as approved by the Federal Government, but implemented a Minimum wage of N32,000.00 to Civil Servants on GL 1 – 6 and also agreed on the consequential adjustments to those on GL 7 and above to civil servants of the State.

With the relative success in unbundling the financial crunch, we took on a multisectoral approach to development by first investing heavily in the peace and security of our people. We launched an aggressive campaign for peaceful coexistence and made justice and fair play the watch word of our administration. We reclaimed the trust and good will in government, which was wasted previously. 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; we procured and donated a substantial number of logistic hard wares and distributed them to the 21 local Government Areas and the security Agencies. These proactive measures and many others which will remain covert, were enough to send the message to the underworld that there is a serious government in place and also guaranty investors that a new environment is created that is safe for doing business. The result is the peace we now enjoy. Interestingly most of our IDP camps have been closed and our people from the northern precinct of the State have mostly returned to their ancestral abode. The perennial farmer-herders conflict has been reduced to the barest minimum in the last two and half years.

In the Education and Human Capital development sector, we lessened the economic burden of impoverished parents by introducing a tuition-free education in our public schools and paid for 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 over 120 Students currently studying medicine, engineering and medical sciences in India. We equally reintroduce and sustained regular annual bursaries to indigent students studying in the various tertiary institutions within the country. With support from UNICEF and KFW- German Partners, we have constructed and rehabilitated over 80 Schools in Fufore and Guyuk LGAs. We are equipping the schools and distributing instructional material and sporting facilities to the public schools. Finally, in this sector, we are poised to establishing at least 9 Standard boarding Secondary Schools where our most of our promising students will be sent to be handled by our best teachers. This plan will produce the future leaders of this nation and captains of industries, like you. Here lie the future Human Capital incubators of Adamawa State.

In the health sector, in order to ensure equitable access to secondary health care services across the State, we are constructing 4 new 60-bed, 1 new 30-bed and upgrading 2 existing, cottage hospitals in various LGAs. We are also renovating and upgrading facilities in the three General hospitals owned by the State to handle referrals effectively. We have provided a modern Infectious Diseases Center (IDC) to manage and contain epidemics generally. This has been put to use in the containment of COVID-19 Pandemic and now adopted for the Cholera menace. To improve the quality-of-service delivery in our Primary Health Centers, we have recruited over 1,200 personnel into the Primary Health care system; constructed 22 Primary Health Care Facilities and renovated over 20 existing facilities across the State with support from our partners.

Working hard to bridge the infrastructure gap, we have embarked on an aggressive urban renewal programme. Our signature projects in the State capital are the overhead (Flyovers) and grade interchange with underpass at Total junction and Police roundabout respectively in the State Capital, which is now at completion stage. To compliment these monuments and ensure a coordinated traffic management and guarantee free vehicular movement within the metropolis, about 20 km road network have either been constructed or rehabilitated in the Metropolis. The urban renewal project is also extended to the various Local Government areas with the construction of 2.5km road in Numan, 3.5 km road in Hong, 6.6 km road in Madagali, 3.8 km road in Jada, 5.1 km road in Michika. We have also either completed or are working on roads, considered critical, which were started by our predecessors namely; the 37.5 km Kiri – Sheleng road, 7 km Buwangal – Sangasumi road, 33 km Pella – Maiha road and the 5.3 km internal roads in ADSU among others. It is gratifying to note that most of these projects have been completed, commissioned and put to use for our people. The rural electrification project has equally reconnected communities of Michika and Madagali LGAs to the National grid after five years of destruction by Boko Haram Insurgents. We have also connected Tahau in Demsa LGA, and Toungo LGA to the National Grid. I continue to draw joy and pride in the Toungo electricity project. Not only because of its landmark status but more because of my ability to fulfil an electoral promise I have always carried as a burden. It used to be the only LGA, of the 774, not on the National Grid.

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 self-reliance. This will also stimulate the development of Micro, Small and Medium Enterprises in the State.

Our Agriculture and Livestock masterplan development are on course with the establishment of the State Livestock Transformation Office (SLTO). We have commenced the Cocoa Rehabilitation and Regeneration Programme in Toungo and Ganye LGAs, consistently procured and supplied inputs and supplies to our local farmers at subsidized prices, completed the ultra-modern Jimeta Abattoir as well as well ongoing rehabilitation of selected Abattoirs in the State.

Mr. Speaker, Honourable Members, we have been able to achieve all these in the face of glaring impossibilities. This is further worsened by the hard effect of the COVID-19 Pandemic on the economy globally.

As a responsible government, we deployed adequate resources into the design of an economic response stimuli for the State. While admitting that the situation is tough, it can only be tougher for those who refuse to act at the right time. Our window for economic survival is unlocking our potentials that is secretly hidden in Agriculture and its value chain. It is against this background that we launched the ADAMAWA STATE AGRIBUSINESS SUPPORT PROGRAMME (ADAS). The
ADAS is our thought-out route to exit the era of overdependence on oil money from FAAC to run the government. It is equally a product that can confer prosperity to our people and our friends that are willing to do business with us. Our vision is to have an Adamawa State that is financially self-sufficient; where cost of governance (both recurrent and capital) can conveniently be defrayed from the streams of revenues invented within.

Mr. Speaker, Honourable Members, to sustain what this Administration has already begun, we have tagged the 2022 budget as “The Budget of Sustainable Hope”. It is formulated in line with the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper as a matter of Economic Planning and Policy as earlier submitted before this Honourable House.

The 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. It is customary on this occasion to enlighten our people on the performance of the subsisting Budget in terms of revenue earnings and achievements. This will enable us evaluate our strengths and weaknesses and reappraise our priorities for the challenges ahead.

REVIEW OF THE 2021 BUDGET
Mr. Speaker, Honourable Members, before I present the details of the 2022 Proposed Annual Budget, it is however customary on Statutory occasions of this nature that a review of the performance of the subsisting Approved Budget in terms of the Actual Revenue that accrued to the State and in particular on what they were expended on within the last three quarters of the financial year be made known to you, and indeed the entire State.

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.

It is on this note therefore, that I want to refresh your memory that this Honourable Assembly early this year approved the total sum of 140.034 Billion for the 2021 fiscal year to finance both Recurrent and Capital Development Programmes of the State. Out of this, the sum of N67.216.935 Billion which represents 48% of the total Approved Annual Budget Estimate was earmarked for Recurrent Services and N72.817 Billion which represents 52% of the total Approved Annual Budget was earmarked to Service Capital Development Programmes and Services in the State for the fiscal year.
The major policy objectives of the 2021 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) 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.

THE 2022 PROPOSED BUDGET.
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 vigor the emancipation of the State economy, the 2022 Proposed Budget has been carefully packaged to consolidate on the steady gains recorded in the years 2020 and 2021 Budgets. Accordingly, the State Government has proposed 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 its Projects and programmes in 2022 Fiscal year. A summary of the estimates in terms of revenue and expenditure is projected as follows:

REVENUE

022000700100/11010101 STATUTORY ALLOCATION 48,980,338,485.00 022000700100/11010201 SHARE OF VAT 18,818,641,535.00
022000700100/11010303 EXCESS CRUDE 1,500,000,000.00
022000700100/11010401 STAMP DUTY 2,000,000,000.00
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 1,500,000,000.00
022000700100/11010411 SUPPORT FUND (FGN 15,700,000,000.00 INERVENTION)
022000800100/12010111 INTERNALLY GENERATED 11,518,784,000.00 REVENUE
000000000000/00000000 CAPITAL 58,497,146,020.00
RECEIPT(INTERNAL/EXTERNAL)

EXPENDITURE

(a) Personnel
37,828,118,000.00
(b) Overhead
31,447,250,024.00
(c) Social Benefits
29,579,875,016.00
(d) Capital Expenditure 72,817,892,910.00
Total N163,629,910,040.00

The Proposed Budget of N163,629,910,040.00 Billion for 2022 Fiscal year is made up of recurrent expenditure of N98,855,243,040.00
Billion representing 60% of the total Budget while the balance of N64,774,667,000.00
Billion is for Capital development projects representing 40%. Government has completed plans to access long term finance from the capital market by floating bonds to finance some viable projects majorly Agriculture and livestock in the State. The 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.

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

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 lighten hardship on tax payers and also offered online renewal of Vehicle licenses.
• The board will through property tax when properly implemented will enhance the revenue base of the state.

CAPITAL RECEIPTS

These are made up of Grants, Aids, loans etc. Government is however optimistic that substantial funds will be received in 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

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

In 2021, Government budgeted the sum of N67,216,516,530.00 Billion for Capital expenditure and was later Revised to N90,840,278,586.00.
However, only N13,719,299,756.65Billion was expended as at 31st August, 2021 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 N64,774,667,000.00 Billion on capital expenditure in 2022 Fiscal year.

THE CIVIL SERVICE

The Civil Service as the engine for implementing our laudable policies and programmes has continued to receive Government’s priority attention. The workers in the State are still enjoying the National Minimum wage at the rate of N32,000 Naira as promised. In the same vain, we have ensured that salaries are paid consistently on or before the end of every month despite the challenges and fluctuation in allocations from the Federation Account.

My Administration has continued to advertise vacancies for employment and the employment process made transparent to give every qualified Adamawa citizen a fair chance. As a matter of consideration, the government has suspended the Civil Service Examinations that was earlier proposed as a basis for promoting officers based on seniority.

EDUCATION

The Government will continue to solidify what was already established since the inception of this Administration by ensuring that, there is much improvement in the educational sector in the State. This administration has provided additional classrooms in most of our primary schools and will commence, during the 2022 year, rehabilitating most of our Post Primary Schools. Government will also establish at least two standard boarding school, in each senatorial district, to admit the best of our students placed before our very best teachers. We are making adequate provision of learning materials and ensuring the provision of good learning environment. This will enhance of making children to develop interest education at these formative years.
To further consolidate our intervention in this sub-sector, Government will continue to improve on the feeding arrangement in our schools by ensuring that free feeding is timely and a balance is assured. Government will continue to pay the fees for WAEC, NECO, NABTEB, NBAIS and Basic Education Certificate Examinations for students that are qualified to write the Examinations. Qualification will now be based on passing mock exams. How much impact this policy have made can be seen in the sharp increase in the number of students that have passed these examinations as contained in the most recent results realease by both WAEC and NECO. Government will also continue to pay Scholarship allowances promptly to students in all Tertiary Institutions both within and outside the Country. My Administration have already placed the names of successful 2,000 qualified teachers that I have promised to employed last year thereby ensuring good quality teachers in our classrooms and ultimately creating job opportunity for our teeming youths.

HEALTH

Mr Speaker, Honourable Members ,you will bear me witness from the inception of this administration to date, the standard of our hospitals and health centers both within and outside the State Capital have been greatly improved and access to medical services have been made available in all our rural areas. The government have propose to spend the sum of N6,750,000,000 for the health sector in the year 2022.

CRITICAL INFRASTRUCTURE:

The present administration has improved on our road network in the urban centres and link roads in rural areas to facilitate easy movement of both human and farm produce. Our urban renewal projects, in the State capital currently ongoing will soon be completed and will ease a lot of traffic congestion on the main entries in addition to the beautification of our collective pride in the State capital. During the year under review, the government carried out new urban roads and overhead bridges with the deliberate attempt to urbanize the cities. No doubt, Government has made some progress in the rehabilitation of some road network in Jimeta, Yola, Jada, Numan, Hong, Michika, Madagali and other Local Government Areas of the State this Fiscal year. Government will continue to invest substantially in the maintenance and upgrading the standard of the roads, in the year 2022, for all year-round usage. To make a significant intervention in this sub-sector, Government has proposed to spend the total sum of N21,000,000,000.00 on urban and rural roads.

It is important to remind Honourable Members, that our plan to reduce housing deficit in the State will be sustained by ensuring the completion of the 1,000 housing units which is ongoing and the ones being provided by the NEDC.

It is my desire to see that all our communities are electrified and also have good access roads. To transform this desire to fruition, my administration is going to be committed to the development of our electrification and rural roads under Rural Infrastructure and community Development.

AGRICULTURE

Mr. Speaker, Hon. Members, Agriculture is unarguably the mainstay of our economy. Vigorous and sustained investment in agriculture will bring about development and poverty reduction. Government will as a matter of priority, in the next fiscal year complete the will resuscitation of the existing fertilizer blending plant commences production. We will also implement all the Covid-19 Recovery Economic stimulus (CAREs) and Agro-Processing, Productivity Enhancement and Livelihood Improvement Support Project (APEALS) in the State. Government will continue to promote dry season farming through the development of Irrigation schemes to ensure food production on continuous basis all the year round. The sum of N2,500,000.00 has been proposed for the Agricultural sub-sector in 2022.

Above all, Mr Speaker, Honourable members our famous Agric bond has hit the capital market with a resounding success as the response so far is reassuring, with an indication of possible over subscription of the Series 1. I thank you all for being part the bond initiative

WOMEN AND YOUTH EMPOWERMENT
Hon. Speaker, Hon Members, this Government, having invested in critical Infrastructure, Education, Health and Security substantially in this Fiscal year, we intend to give Women and Youth Empowerment a considerable attention in the 2022 Fiscal year. A standard governmenting factory will be established plus an ICT skill acquisition centres.

This administration has enacted violence Against Persons Prohibition law in order to protect vulnerable children and women in the society.

INTERNAL SECURITY

Mr. Speaker, Honourable Members, there is no doubt that Adamawa State is one of the most peaceful States in the country. With joy in my heart, I call on this Honourable House and indeed the people of the State to continue to thank God for the relative peace that He has bestowed on this State. Let this peace never depart from us. I also thank the peace-loving people of Adamawa State that in spite of our different cultural beliefs, religious leanings and political affiliations, we have continued to be our neighbor’s keepers, living in peace, love and harmony. I still appeal to the people of the State to continue to shun some misguided elements who fan embers of suspicion and hatred among our people with a view to disrupting the peaceful coexistence we have been enjoying. We must shun violence because it has no dividend apart from self-destruction and untold hardship. To reap the fruit of our present democracy, we must resolve to live in peace, as there is no other alternative. We have been living with one another for a long time, let us therefore appreciate and respect each other’s differences and values. I want to assure you that Government on its part is always ready to pull its resources to protect the lives and property of its citizens at all times.

Government is also aware of some pockets of armed banditry and kidnapping along some of our highways and rural areas in the State. We intend to sustain the current offensive against the perpetrators of these acts. The combined efforts of the law enforcement agents and the public will flush out these criminals from our societies in the very near future. We shall not relent in our efforts to report suspicious individuals in our communities to the community leaders and the police. There must be no hiding place for criminals in our midst.

May I therefore seize this opportunity to thank all the traditional rulers, security agents, opinion leaders and all peace-loving citizens of the State who have contributed immensely in nurturing and sustaining peace in the State. By the grace of God we will continue to enjoy the peace that we have collectively worked for.

Mr. Speaker, Members of this Honourable House, I would like to express my heart felt gratitude for the immense cooperation I have been receiving from you since the inception of this Administration. Adamawa State is indeed blessed, because it is one of the few States in the Federation that have maintained and sustained a cordial working relationship between the Legislature and the Executive. With the caliber of legislators in the House, I am confident that we will continue to work together to build our State and uplift the quality of lives of our people. My doors will continue to remain open for good advice, dialogue and consultation as we join hands to build Adamawa State of our dream for the future generation to inherit.

Mr. Speaker, the programmes articulated in the 2022 Budget Proposal have been carefully packaged to consolidate in our giant strides and provide hope for a sustained development in the State. The financial projections are made based on Fiscal Strategy Paper 2022 and anticipated allocation from the Federation Account. Through carefully crafted reforms, we are determined to translate the lofty programmes of this proposed budget into reality by being deliberate, prudent, disciplined and transparent application of the lean resources we hope to receive. I therefore look forward to your full cooperation, which I am confident you will give as you have always done.

Mr. Speaker Sir, it is now my singular honour and pleasure to lay, before this honourable House, a budget proposal of One Hundred and sixty three Billion, six hundred and twenty nine million Million, Four Hundred and Nine Thousand, Four Hundred and Forty Naira N163,629,910,040.00, Tagged Budget of Sustainable Hope, for the year 2022 ending 31st December, in which we intend to sustain the hope in the citizens that the State is on a sure path of growth, for the kind consideration of this Honourable House.

I thank you all.
God Bless Adamawa State.
God Bless the Federal Republic of Nigeria Amen.

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