CAPITAL EXPENDITURE PERFORMANCE
Capital Expenditure Approved Budget 2019 Proportionate Budget Jan – August, 2019 Actual Jan – August, 2019 % Performance
Administration Sector 19,983,414,038 13,322,276,025 2,312,367,150 17.36
Economic Sector 131,064,846,283 87,376,564,189 107,731,419,561 123.30
Law & Justice Sector 3,445,848,935 2,297,232,623 455,449,145 19.83
Regional Sector 31,000,000,000 20,666,666,667 22,230,385,251 107.57
Social Sector 44,788,532,669 29,859,021,779 6,721,066,511 22.51
Contingency Fund 3,000,000,000 2,000,000,000 – –
CAPITAL EXPENDITURE 233,282,641,925 155,521,761,283 139,450,687,617 89.67
NOTE: Actual expenditure for Contingency Fund is already reported across the sectors, as the Contingency Fund is not a Vote of Charge.
34. Our capital budget in 2019 was two hundred and thirty-three billion, two hundred and eighty-two million, six hundred and forty-one thousand, nine hundred and twenty-five naira (N233,282,641,925). This gives a proportionate figure of one hundred and fifty-five billion, five hundred and twenty-one million, seven hundred and sixty one thousand, two hundred and eighty-three naira (N155,521,761,283) for the period, January to August 2019.
35. Actual payment for the period stood at one hundred and thirty-nine billion, four hundred and fifty million, six hundred and eighty-seven thousand, six hundred and seventeen naira (N139,450,687,617) which represents a performance of 89.67 %. Considerable increase is expected in the level of expenditure in the fourth quarter of the year due to the volume of civil work that will pick up from the month of October as we take full advantage of the dry season.
YEAR 2020 BUDGET
36. Mr. Speaker, Honourable members, it is my pleasure to present to this honourable House the 2020 Budget Proposals, christened “Budget of Sustained Development.”
37. The 2020 revenue and expenditure estimates are based on a Medium-Term Expenditure Framework (MTEF), which projected a $57 benchmark price for crude oil at production levels of 2.18 million barrels per day, 10.36% annual inflation, 3.60% projected real GDP growth and an exchange rate of N305 to the US Dollar.
38. The proposed size of the year 2020 Budget is three hundred and eighty-nine billion, one hundred and ninety million, seven hundred and ninety-nine thousand, three hundred and sixty-two naira (N389,190,799,362). The Recurrent Expenditure is one hundred and seventy-one billion, five hundred and forty-nine million, three hundred and forty-eight thousand, three hundred and fifteen naira (N171,549,384,315) while the provision for Capital Expenditure is two hundred and seventeen billion, six hundred and forty-one million, four hundred and fifteen thousand and forty-seven naira (N217,641,415,047). This represents 44.08% Recurrent Expenditure and 55.92% Capital Expenditure, consistent with our agenda to spend more on projects and programmes that will impact directly on the socio-economic well-being of our people.
39. The total proposed budget size for 2020 dropped by N1.18bn from the budget figure of 2019.
SUMMARY OF THE 2020 DRAFT REVENUE AND EXPENDITURE ESTIMATES
RECURRENT REVENUE PROJECTION 2020
Revenue Detail Proposed Provision 2020 % Proposed
Internally Generated Revenue 71,012,876,590 18.25
Statutory Allocation Including Mineral Revenue Derivation 248,405,143,118 63.82
Value Added Tax 22,958,761,951 5.90
Other Capital Receipts/Miscellaneous 46,814,017,703 12.03
TOTAL REVENUE 389,190,799,362 100
RECURRENT EXPENDITURE ESTIMATES 2020
Recurrent Expenditure Details Proposed Provision 2020 % Proposed
Personnel Costs 83,959,405,755 48.94
Overhead Costs 60,221,051,369 35.11
Consolidated Revenue Fund Charges:
Statutory Emolument 467,230,932 0.27
Social Contribution 7,800,000,000 4.55
Social Benefit 5,008,000,000 2.92
Internal Debt Service – 0.00
Domestic Loan Repayment (Principal ) 6,667,696,259 3.89
External Loan Repayment 300,000,000 0.17
Grants and Contribution 7,126,000,000 4.15
Total Recurrent Expenditure 171,549,384,315 100
CAPITAL EXPENDITURE ESTIMATES 2020
40. The sum of N217,641,415,047 has been allocated for capital expenditure across sectors as follows:
Capital Expenditure Proposed Provision 2020 % Proposed
Administration Sector 12,374,527,400 5.69
Economic Sector 110,339,000,295 50.70
Law & Justice Sector 1,533,908,821 0.70
Regional Sector 43,714,320,016 20.09
Social Sector 46,679,658,515 21.45
Contingency Fund 3,000,000,000 1.38
TOTAL CAPITAL EXPENDITURE 217,641,415,047 100
SECTORAL HIGHLIGHTS
ROADS AND PHYSICAL INFRASTRUCTURE
41. I don’t think I need to say much about improving roads and physical infrastructure. We must continue with significant investments in this sector to connect our communities, renew our urban centres, boost commerce and provide a more civilised living environment for our people.
42. The sum of N84.54 billion is provided for the Ministry of Works in the 2020 fiscal year.
BUILDING A KNOWLEDGE ECONOMY
43. We intend to continue to reposition our educational system to equip our youth population with the skill set needed for this new world of rapid change and digital revolution. As you are aware, technical and vocational education has been our main policy thrust in this sector. During our first tenure, we completed the rehabilitation and equipping of the six technical colleges in the State. Accreditation of all trade subjects by the National Board for Technical Education (NBTE) was achieved in 2018 and plans are underway for the establishment of additional Technical Colleges in the remaining 19 Local Government Areas of the State.
44. The Ministry of Technical Education was recently created to consolidate the gains we have made and institutionalise technical/vocational education in our schools’ curricula. Part of the functions of the new Ministry include formulation of policies for technical education and management of technical colleges in the state. The new Ministry will also coordinate the accreditation of technical colleges and vocational centres, process the registration and licensing of vocational enterprise institutions, coordinate partnership and investment of technical colleges and vocational Centres in the State, as well as liaise with appropriate Ministries, Departments and Agencies in the implementation of technical and vocational education and training programmes in the State.
45. The sum of N31.6 billion is proposed for the education sector in the 2020 fiscal year.
