Ogun: Abiodun Presents N350.74bn Budget Proposal for 2022
Dapo-Abiodun
- Bornu presents N267.9bn
Ogun State Governor, Prince Dapo Abiodun yesterday presented a N350.74 billion 2022 Appropriation Bill to the State House of Assembly. Also, Borno State Governor, Prof. Babagana Zulum has presented an appropriation bill of N267.9 billion to the State House of Assembly for 2022 fiscal year.
The Ogun State budget christened, “Budget of Restoration,” has a projection of N170 billion for physical capital projects, which represented an increase of N10 billion from the current 2021 budget.
According to a statement, the recurrent expenditure, was expected to take N154 billion billion out of which personnel cost would gulp N75 billion with N51 billion earmarked for overhead expenses, just as N28 billion was set aside for debt service obligations.
The governor said N7.7 billion would be set aside for stabilisation fund to insulate and position the state towards unprecedented activities or economic shocks.
Speaking on the budget sourcing, Abiodun was quoted to have said N56.30 billion was expected to be sourced through internally Generated Revenue, while the revenue targets of other Ministries, Departments and Agencies (MDAs) was put at N96.87 billion.
He added that N73.01 billion was being expected from the Federation Account, while the sum of N124.56 billion would be sourced from capital receipts.
On his part, Zulum announced a total of N267.9 billion with N172.5 billion for capital expenditure and N95.4 billion for recurrent expenditure.
With “Hope for Post-Conflict Stability” as it title, Zulum said the budget aims to fast track ongoing reconstruction of destroyed communities for safe and dignified resettlement of IDPs, as well as the provision of livelihood and social support to citizens. The budget also aims to fund completion of all ongoing capital projects.
He said the budget will be financed from anticipated recurrent revenue of N113.8 billion made of FAAC allocation and increased IGR, and capital receipts of N154 billion made up of loans and grants.
He said many plans would be pursued in the education sector which include the establishment of new technical schools, reconstruction and reopening of some schools destroyed by insurgents, and the establishment of what he called “Centres of Excellence” which will involve identifying two existing secondary schools in each of Borno’s three Senatorial zones and transforming the six schools to become of international standards.
Meanwhile, giving a sectorial breakdown of the expenditure, the governor Abiodun of Ogun State said N56.07 billion was being allocated for education sector, representing 16 per cent, while N35.07 billion would cater for the health sector, with the housing and community development sector sharing N28.65 billion, just as N15.21 billion was voted for Agriculture and Industry.
According to him, infrastructure would gulp N77.77 billion, representing 22 per cent of the total budget, with Recreation, Culture and Religion to share N6.32 billion, just as N22.097 billion would be spent on social protection.
He further assured that the 2022 proposed budget would contain only implementable and critical projects, which when completed, would significantly address current structural challenges in the State economy, improve the business environment and accelerate economic recovery.
“In 2022, we will continue to accord priority attention to the completion of existing projects; projects with revenue potential; projects consistent with priorities articulated in the State Economic Development Strategy and projects that can enhance employment generation,” the governor stated
In his remarks, the Speaker of the State Assembly Hon. Olakunle Oluomo, lauded the various infrastructural projects put in place by the governor across the three senatorial districts.
Oluomo gave assurance of continuous mutual interdependence between the legislature and other arms of government towards achieving more monumental development in all facets of the state’s economy.
He noted that a speedy and thorough legislative process would be conducted on the proposed budget with a view to sustaining the tradition of its passage on record time to comply with the January to December cycle in line with international financial standard.
The speaker on behalf of lawmakers sought for the release of their annual constituency project intervention fund to enable them execute projects in their respective constituency projects.
He equally sought for the release of the severance allowance of members who served in the 8th Assembly..
For Bornu, N23.8 billion will be for reconstruction of communities destroyed by insurgents, as well as the rehabilitation and resettlement of victims.
Zulum revealed plans for construction of resettlement houses in Abadam, Guzamala, Kukawa, Kwaya Kusar, Dikwa, Malamfatori, Logumane, Gajibo, Gudumbali, Dalwa, Darajamal, Ngurosoye, Kirawa, Maiwa, Ashigasha among others.
The health and human services got N24.2 billion, Ministry of Finance received N30.4 billion to sustain prompt payment of salaries and gratuities, Housing and Energy was allocated N8.7 billion for completion of a housing estate and other projects.
Zulum also appropriated N22.9 billion to Works, for the construction of a number of roads he listed and gave N10.4 billion to Agriculture and Natural Resources for series of farming programmes, animal and fisheries development.
The sum of N4.4 billion was allocated for Transport, while various amounts to other sectors including security operations through the Security Trust Fund and the Governor’s office which normally undertakes major interventions on sensitive security matters.
The budget also proposed 64 per cent of the entire budget which is N172.5 billion out of N267.9 billion, was allocated for capital projects mostly physical constructions of infrastructure, houses, schools and others.
Zulum earlier gave detailed review of the 2021 budget performance, reeling out verified statistics of projects and programmes delivered by his administration in 2021, with names of communities where the projects are located.
