BAUCHI STATE GOVERNMENT HOUSE PRESS RELEASE

 

SPEECH BY HIS EXCELLENCY, SEN. BALA ABDULKADIR MOHAMMED, CON (KAURAN  DAULAR USMANIYYA ) THE EXECUTIVE GOVERNOR OF BAUCHI STATE ON THE OCCASION OF PRESENTATION OF THE YEAR 2025 BUDGET PROPOSAL TO THE BAUCHI STATE HOUSE OF ASSEMBLY ON 21st NOVEMBER 2024.

 

-Your Excellency, the Deputy Governor,

-Rt. Honourable Speaker, Bauchi State House of Assembly,

-My Lords, the Chief Judge and Grand Khadi,

-Members of the National Assembly here present,

- Honorable Members, Bauchi State House of Assembly,

-Secretary to the State Government,

-Members of the State Executive Council,

-The State Chairman, PDP,

-The Head of Civil Service,

-The Chief of Staff Government House,

-Special Advisers & Other Political Appointees,

-Chief Executives of Parastatals and Heads of Extra Ministerial Departments,

-Permanent Secretaries,

-Local Government Chairmen,

-Your Royal Highnesses,

-Heads of Security Agencies,

-Members of the State Executive Committee, PDP,

-Distinguished Invited Guests,

-Members of the Press Corps,

-Ladies and Gentlemen.

 

In the name of Allah, the most beneficent; the most merciful.

2.​It is with a deep sense of gratitude to the Almighty Allah (SWT), that I stand before you today on the occasion of the presentation of the 2025 Budget Estimates to this Honourable House. I wish to thank the Right Honourable Speaker, Principal Officers and Members of this House for the continuous support extended to me and for the extra-ordinary commitment of the House towards the development of our dear State.

3.​Mr. Speaker, Honourable members, we have over the last five years steered the affairs of the State to a path of sustainable development and continuous progress through the implementation of citizen-focused and demand driven projects and programs. As we go into the next phase of our development trajectory, we remain ever committed towards the service of our dear State and the improvement of the lives and welfare of the citizens.

REVIEW OF RECENT MACROECONOMIC AND FINANCIAL DEVELOPMENTS

4. Mr Speaker, Honourable Members, previous distortionary and unsustainable macroeconomic policies had hindered Nigeria from achieving its immense potential. Major reforms had to be undertaken to restore macroeconomic stability since May 2023. The government had moved towards market-based pricing of gasoline to address the large fiscal cost of subsidized pricing.

5. Petrol prices had, as a result, increased by about 317% from N254 per litre in May 2023 to N671 in December 2023; N897 in September 2024 and N1,060 in October 2024. Furthermore, the Central Bank of Nigeria initiated major Foreign Exchange policy reforms that resulted in a unified, better regulated, and market-reflective official exchange rate. The exchange rate depreciated by about 270% from N460 per US Dollar in June 2023 to about N1,650 in October 2024 resulting from the floating of the naira.

6. In the first half of 2024, the economy experienced a 3.1 percent growth in real Gross Domestic Product (GDP), marking a slight increase compared to the previous half in 2023. While the economy benefited from improved trade positions, enhanced government revenue, and increased foreign investment, these gains have been tempered by heightened macroeconomic instability.

7. Challenges, which had manifested with the policy reforms, including exchange rate depreciation, intensified inflationary pressures, elevated interest rate environment, and deteriorated fiscal sustainability have persisted. Consequently, the positive aspects of economic growth have been overshadowed by increasing unemployment, declining per capita income, and a higher incidence of poverty, thereby undermining the social benefits of the economic expansion.

8. To check these uncertainties, monetary policy was tightened to control inflation, with the policy rate increased from 18.75% in December 2023 to 27.25% in September 2024, an all time high in the country’s history. Inflation had fallen to a six-month low of 32.15% in August on lower food prices and base effects. The policy stance needs to remain tight until a sustained disinflation path is achieved, along with continued improvements in policy transmission.

9. The fiscal position is also improving with the of GDP in the first half of 2024 from 6.2% in the first half of 2023, helping to mitigate debt-related risks. GDP expanded by 3.2% in the second quarter of 2024 as the oil sector grew sharply on better production levels. Between May and August 2024, average oil production increased 8% to 1.35 million barrels per day, supporting export earnings.  

10. Capital inflows, primarily driven by a three-fold year-on-year increase in foreign portfolio investments, have risen significantly, contributing to dollar inflows. As a result, foreign exchange reserves – a buffer against external shocks – have risen from $32.9 billion at the end of 2023 to more than $38.8 billion by mid-October 2024. It is important to note, however, that inflation remains high, and inched up again in September 2024 to 32.7%, mainly due to the most recent gasoline price increases and the recent spate of floods across the country.

11. In terms of outlook and risks, economic growth is projected to increase to 3.2% by the end of 2024 and 3.4% in 2025, due to improved security, higher oil production, and stronger consumer demand. Inflation is expected to rise to 33.5% by the end of 2024, driven by higher food prices and continued depreciation of the naira, before moderating to 20.7% in 2025 as inflationary pressures abate.

12. The fiscal deficit, financed by domestic borrowing, is projected to narrow to 4.3% of GDP in 2024 and 4.1% in 2025 as both oil and nonoil revenues improve. The current account surplus is expected to improve to 3.0% of GDP in 2024 and 3.6% in 2025 due to higher oil exports. Headwinds include insecurity, lower oil production, rising fuel and food prices, and further exchange rate depreciation. Tailwinds include new oil production from the Dangote refinery, which is expected to lower energy prices as it starts supplying the local market.

13. To bolster its financial structural transformation, Nigeria needs to reform the financial architecture by accelerating domestic resource mobilization, especially through tax administration. The African Development Bank is supporting the introduction of an integrated unique identification system aimed at improving tax compliance.

14. Nigeria also faces exorbitant financing costs in global financial markets, with its 30-year bond trading at a double-digit yield of 11.11% in January 2023 (and 10.58% in April 2024) compared with 8.25% at issue in 2021. Consequently, Nigeria was unable to mobilize financing from the Eurobond market in 2023 though plans are on going to issue Eurobonds and Islamic sukuk bonds as part of the funding arrangement for the 2024 budget.

15. The new policy direction taken by the Federal Government, though essential, had in the short-term added to already intense pressures on households and firms. It had significantly disrupted economic activities, contributing to a challenging business environment that had resulted in the exit of multinational companies and the closure of over 200 local manufacturing firms within a year.

16. While stabilizing the macroeconomy, it has become critical to protect the poor and the economically insecure by deliberate policy aimed at enhancing the social protection framework. Poverty is high and rising with a high rate of unemployment. Sustained poverty reduction depends on creating wage jobs through macro-fiscal stability, growth, and private sector development, complemented by building human capital. Policy initiatives for women and youth are also anticipated to improve the labour market’s poverty-reducing potential.

17. The foregoing had given rise to major concerns upon which we have argued over the last few months. As sub-nationals, we had initially supported the federal government in the roll-out of these polices. We strongly believe, however, that empathy and strong consideration must be given to the plight of citizens in the implementation of the reforms.

18. Rising prices require palliatives including cash transfers and grains to be provided to cushion the effect of the reforms. The impact and adequacy of the palliatives provided, in view of the needs and additional shocks caused by incessant flooding that had affected lives and livelihoods of citizens across the country, had not been commensurate. There is the need for the Federal Government to scale up the intervention measures it had introduced.

19. It has also become expedient to encourage the promotion of the productive sector of the economy to stimulate growth and encourage exports so that the foreign exchange imbroglio can be mitigated. Greater collaboration between Governments and the private sector is key in developing the agricultural and other value chains in sectors of comparative advantages.

20. In respect of the proposed tax reforms, it is important to note that trust deficit between citizens and Governments had been the bane in revenue generation in the country. This needs to be addressed with effective and more efficient deployment of revenues to meet citizens needs in infrastructure and services.

21. Greater care must be taken to note the rate at which more Nigerians had been driven into the poverty zone. The reforms should be targeted appropriately where the weaknesses are while proper, sustained consultation and public enlightenment should be made to carry citizens along.

LOOKING AHEAD – OUR  DEVELOPMENT TRAJECTORY

22. The Right Honourable Speaker, distinguished Members, development is the essence of governance. Our job, as political leaders, is to ensure that we create and champion sustainable development that assures of a better future for our constituency.

23. We have been faithful in the implementation of ‘My Bauchi Project’, the strategic vision that was initially developed to guide our administration which had also guided the development of the Bauchi State Medium Term Development Plan 2021-2025. The Plan provided the roadmap towards meeting up to the numerous demands of the citizenry and the electioneering promises we made to the people.

24. We have over the last five years made significant progress towards the provision of basic social services and improving the quality and stock of infrastructure that had affected the lives and welfare of the people. Several other major reforms have also been undertaken along the various sectors of the public service.

25. As we move forward into the task ahead in the next fiscal year, we have set before us a clear course; defining our priorities, drawing up relevant policies and programs and setting up plans to achieve that.

26. Without any iota of doubt, Human Capital Development remains central to the development and transformation of our state through the provision of required human resources and skills for economic development.

27. We acknowledge, however, that despite the tremendous efforts made by government, a lot still needs to be done arising from infrastructural deficit as well as lack of teachers. We are, more than ever before, committed towards making substantial investments in the provision of the needed infrastructure through the building, rehabilitation and equipping of schools; addressing the human resources needs through recruitment, training, and re-training of qualified teachers; as well as increased rate of enrolment and progression.

28. In healthcare, infrastructure and utility provision as well as human resources for the service had remained the key productive pillars upon which healthcare delivery is based. However, Ineffective healthcare services, caused mainly by shortage and inequitable distribution of the workforce particularly in the rural areas, still manifests despite the provision of primary and secondary healthcare facilities in the LG Headquarters and at Wards respectively.

29. Government will, while meeting the minimum 15% health budget benchmark agreed in the Abuja declaration, continue with its efforts in the provision, rehabilitation and equipping of our healthcare facilities to reduce the high patient-facility ratio; as well as in the engagement, training, and re-training of qualified professionals.

30. In the area of infrastructure development, we will build up on the massive investments we have made over the last five years. It is incontrovertible that the network of roads constructed across the length and breadth of the State have opened up the State with its vast potentials thus resulting in massive economic growth.

31. We are pleased to note that work is steadily progressing on ongoing projects across the length and breadth of the State while a number of new roads and other projects have equally been proposed.

32. Our continuous investments into Capital investments over the last five years and going forward are informed by a number of reasons. First, they are productive investments that generate longer-term benefits and are vital for increasing the productive capacity of the economy and ultimately the economy’s output in the future.

33. Secondly, capital investments increase demand for goods and services in related industries as an expansionary fiscal policy and are vital to stimulate private sector economic activity. Our commitment reflects our desire to lay the foundation for the economic growth and development of the State.

34. Agriculture has, no doubt, remained the biggest contributor to the GDP and the one sector with the highest employment of labour. Agriculture in the 21st century can only survive and thrive if it is technology propelled and market driven.

35. We will focus on providing the enabling environment for agriculture to blossom leveraging on private sector participation; creation of markets and through the promotion of the use of appropriate technology. Additionally, we intend to address the issue of shortage of extension workers; as well as shifting the focus of Agric-curriculum from just production to processing.

36. The Right Honourable Speaker, Honourable Members; the State Government has continued to pursue the commitment made by the Federal Government towards the implementation of the Livestock Productivity and Resilience Support Project (L-PRESS) which is both intended to support our efforts in livestock development and promotion of the associated value chain.

37. We also recognize the fact that Information Technology is today and in the foreseeable future the fastest growing industry and one with increasing capacity to absorb young people with skills. The digital economy in Nigeria has grown rapidly over the past decade, driven by the increasing use of mobile devices and the internet, as well as the growth of tech-driven startups and digital businesses.

38. What makes it even more interesting is the fact that the state has a growing population, providing a large pool of potential digital consumers and workers and has the highest number of computer and IT skills development institutions in the Northeast region.

39. We will leverage on such advantages to propel Bauchi as the IT Hub of the North East. Only two days ago, we signed a memorandum of Understanding with Galaxy Backbone Limited towards the provision of critical infrastructure and services needed to jumpstart our dream.

40. This is in addition to the arrangements we made to engage Outsource Global, a leading IT firm in the country, to upskill our youths and create linkages for the deployment of their services as well as our expression of interest to partake in the implementation of the I-DICE program of the Federal Government and the African Development Bank.

41. Mr. Speaker, Honourable Members, our State has a diverse range of natural resources that can be harnessed to drive digital innovation, particularly in the agricultural sector. The relatively low cost of living makes it an even more attractive destination for digital entrepreneurs and investors looking for affordable business locations. We intend to seize this opportunity to create the needed space for the development of our youths.

42. In addition to the opportunities provided through the oil and gas sector that is coming up with exploration activities in Kolmani; the abundance of solid minerals also offers the potential for industrialization. With availability of needed raw materials for the production of cement, the State had signed a memorandum of understanding with Resident Cement Company for the establishment of a multi-billion-naira cement production plant.

43. Mr. Speaker and Honourable Members; drawing inspiration from global commerce capitals like Dubai, we envisage transforming Bauchi into a focal point for trade and investment in the North East. With favorable rankings in ease of doing business and massive infrastructure initiatives, the State presents a golden opportunity for investors.

44. Mr. Speaker and Honourable Members, to assuage the plight of our citizens arising from the increasing cost of living, and for which we have been very concerned, we have planned towards the implementation of a number of social protection programs in line with the provisions of our Social Protection Policy.

45. Furthermore, it is my pleasure to note that we have approved the implementation of the new Minimum Wage of N70,000 for our civil servants with immediate effect. We have also approved the implementation of the Contributory Pension scheme to provide the grounds for decent living for our civil servants after their service.

46. We, however, expect reciprocity in their commitment to the service of the State and will put in place the necessary machinery to monitor performances. In that respect, we are building strong institutions to support our commitment to service delivery as well as to check untoward occurrences.  

47. We have established a State Bureau of Statistics to support us with data needed to take informed, evidence-based decisions. We have also strengthened our Bureau for ICT to improve the efficiency of our governance processes. We have also enacted a law to support the establishment and operations of our Public Complaints and Anti-Corruption Agency to check corruption within the system.  

48. Mr. Speaker, Honourable Members of this House; Our plan is not only comprehensive in its outlook but has defined strategies and courses of action needed to achieve our vision. We are committed to working assiduously to achieve that.

IMPLEMENTATION OF THE 2024 BUDGET  

49- Mr. Speaker, Honourable Members, arising from improved revenue streams from the Federation Account, we had within the third quarter of the year presented a supplementary budget that was approved by this Honourable House.

50-This had expanded our budget size while the implementation of the approved projects had only taken place within the final quarter of the year. This had, consequently affected the overall performance of the 2024 budget.

51- We have overall, in that regard, only been able to achieve about 51.2% in the implementation of the budget as at 30th September 2024 the details of which are as follows:

a) For the Recurrent Revenue comprising Statutory and Independent Revenue sources; out of the sum of N256,334,961,464.85 projected; the sum of N149,095,759,738.93 representing 58.2% was realized at the end of the third quarter.

b) In terms Capital Receipts; out of N133,020,135,538.41 projected, the sum of N119,306,091,821.71 or 89.7% was achieved as at September, 2024.

c)    For Recurrent Expenditure; N131,029,348,081.96 was incurred from the projected sum of N179,803,352,959.80 during the same period representing a performance of 72.9%.

d) Related to Capital Expenditure performance; the sum of N71,351,352,708.09 was achieved from the budgeted sum of N215,092,952,860.80 representing 33.2%.

52- With a faithful but yet significant implementation of our targeted projects and programs, we remain optimistic of achieving a considerable degree of performance of not less than 85% in our Budget implementation at the end of the fiscal year.

THE 2025 BUDGET

53- Mr. Speaker, Honourable Members, the year 2025 budget which I tag “BUDGET OF CONSOLIDATION & SUSTAINABLE DEVELOPMENT”’ is prepared based on the Medium-Term Expenditure Framework (MTEF) in compliance Bauchi State Fiscal Responsibility Law (2009).  It further complies with the National Format and Chart of Accounts, aimed at improving the quality of financial reporting in line with the International Public-Sector Accounting Standards (IPSAS).

54- Mr Speaker, Honourable Members, the 2025 Budget has been predicated on the assumptions of an oil production projection of 2.06 million barrels per day; a bench mark oil price of 75 US dollars per barrel; an exchange rate of N1,400 to the US dollar; an improved level of revenue accruals into the Federation Account; and an improved and efficient system of internally generated revenue collection.

55- Government has in the course of the preparation of the Budget taken the following measures into consideration: -

a. Ensure the completion of on-going projects.

b. Propose new projects only on the basis of critical need and the immediate impact they would make.

c. Reduction in non-essential overheads.

d. Implementation of the new minimum wage

e. Implementation of Contributory Pension Scheme in the State.

f. Compliance with Budget guidelines issued by the Nigerian Governors Forum to ensure peer review and comparability.

g. Compliance with debt servicing and repayment agreements in fulfilment of our obligations.

h. Target favourable sources of Capital Receipts and financing such as Aids & Grants, PPPs etc.

2025 PROJECTED REVENUE AND EXPENDITURE

56- The sum of N465,085,248,317.12 has been Budgeted for Capital and Recurrent services during the 2025 fiscal year. This comprises of Recurrent Expenditure of N182,743,925,931.60 representing 39.3% while Capital Expenditure receives the sum of N282,341,322,385.52 which represents 60.7%.

57- The 2025 proposed Budget is 18% higher than the budget I presented in for 2024 as well as the Supplementary Budget considered by the House within the year. The increase is attributable to the increased revenue arising from the reforms embarked upon and the upward inflationary trends associated with the depreciating state of the local currency. This implies an increase in prices upon which our projects and programmes will be implemented.  The adoption of this conservative approach is to ensure that projects and programmes captured are appropriately costed.

58- The process of the preparation of the budget has been all inclusive. Budget Public Hearings were conducted in the three Senatorial Zones where inputs from Stakeholders were elicited and incorporated into the Budget proposal.

59- Furthermore, the use of community charter of Demand was adopted with detailed demand for interventions submitted by various communities.

60- Mr Speaker, Honourable members, the details of the Budget are as follows:

(A)​RECURRENT ESTIMATES

(a)​Recurrent Revenue Estimates

i) Opening Balance of N16,985,019,995.65

 

ii) The sum of N273,058,875,149.47 is estimated as Recurrent Revenue. This is made up of the following:

                                                           

a) Internally Generated Revenue  N50,028,406,501.61  

b) Statutory Allocation                 N42,030,468,647.86

c)  VAT                                     N78,500,000,000.00

d) Other FAAC Revenue             N102,500,000,000.00

   TOTAL​                          N273,058,875,149.47  

 (b)​Recurrent Expenditure Estimates

A total sum of N181,243,925,931.60 is earmarked for Recurrent Expenditure. The breakdown as follows: -

                                                          

1) Personnel Cost​​     N67,995,477,083.47  

2) Overhead Cost​         N113,248,448,848.13  

 TOTAL                                N181,243,925,931.60

 

 

(B)​CAPITAL RECEIPTS

It is projected that the State will realize Capital Receipts in the sum of N172,441,353,172.00 in the following areas:

                                                           

                                                                                                     

a) Aids and Grants​               N27,629,353,172.00

b) Bond                                 N30,000,000,000.00

c) Other Capital Receipts​​  N114,812,000,000.00  

TOTAL                          N172,441,353,172.00

(C)​CAPITAL EXPENDITURE

Capital Expenditure has been proposed in the sum of N282,341,322,385.52.

ALLOCATION TO SECTORS 

                                                                   

a) ADMINISTRATIVE SECTOR    N69,941,674,429.65  

b) ECONOMIC SECTOR               N219,506,601,771.75  

c) LAW & JUSTICE SECTOR           N9,538,142,748.76  

d) SOCIALSECTOR                     N166,098,829,366.96  

  

TOTAL-N465,085, 248, 317.12

CONCLUSION

61- concluding this presentation, I want to solicit the continuous support and cooperation of this Honourable House in our efforts towards the development of our dear State and in improving the lives of its citizens. We have no doubt made significant progress in that respect.

62- As we, in the course of discharging our responsibilities, navigate these difficult times especially for our citizens, I want to use this opportunity to solicit for support towards our development objectives aimed at reversing negative manifestations. We will continue to work to ensure that the prevailing peace, security and protection of lives and properties of citizens is guaranteed. Our absolute trust is, indeed, in the Almighty Allah in Whom we truly believe.  

63-?Finally, Mr. Speaker, Honourable Members, I wish to appreciate your rapt attention to the presentation of the 2025 Budget proposals. I wish to appeal to the Honourable House to expedite action towards passing the Budget to enable the planned Government implement the programmes and projects.

64- Mr. Speaker, Honourable Members, distinguished ladies and gentlemen, I wish to thank all those that are here with us to witness the presentation of this Budget. I most specially acknowledge our royal fathers, statesmen, and other leaders here present.

65- Thank you and may Gid bless us all , Ameen.

Compiled and Released by the Directorate of Press Affairs, Government House Bauchi .

21st November, 2024