Delta budgets N389bn for 2020; full text of appropriation bill inside

Governor Okowa presenting the 2020 Delta State Budget to the House of Assembly.

Delta State Governor, Dr Ifeanyi Okowa, this morning, Wednesday, November 6, 2019 presented the 2020 Appropriation Bill of N389.19 billion christened “Budget of Sustainable Development” to the House of Assembly.

The governor announced that Capital Expenditure of the budget would gulp N217.64 billion representing 55.92 per cent and that N171.55 billion or 44.08 per cent had been earmarked for Recurrent Expenditure during the period.
The Governor making his budget address in the House of Assembly.

The budget is a little less than 2019’s N390.38 billion comprised of N157.10 billion for recurrent expenditure and N233.28 billion for capital expenditure.

Okowa said that the 2020 budget would help his administration to achieve fiscal stability and promote accountability as imperatives for sustained economic growth.

He said that he would prioritize efficiency in expenditure through stringent control on non-productive expenditure, judicious allocation of resources and cost effectiveness of project delivery.

The governor also stated that the budget would accelerate rural-urban integration and urban renewal through roads and flood control infrastructure, markets development, housing and sanitation.

He said it was targeted at growing the non-oil sectors to produce an economy that was truly diversified, self-reliant, resilient and could withstand external shocks.

“During the fiscal year, we will continue to pursue Health for all Deltans (HeFAD) in line with the Universal Health Coverage mandate of the United Nations Sustainable Development Goals.
Okowa flanked by his Deputy, Kingsley Otuaro, right, and the Speaker, Sheriff Oborevwori while answering questions from journalists.

“Through the budget, we will increase investment in youth entrepreneurship development programmes as well as technical/vocational education designed to foster a new generation of wealth creators, business leaders and managers. “It will deepen and strengthen our social investment programmes for improved protection of the poor and vulnerable segments of the society, and escalate our peace-building initiatives to secure our oil and gas installations.

“It will ensure public safety and engender an investor-friendly climate, boost revenue through widening of the tax base and administration of a functional tax regime that is fair, just and equitable and engender a more responsive and efficient public sector,” he said.

Road and Physical Infrastructure sector was allocated N84.54 billion, the highest amount of the budget and was followed by Education with N31.6 billion.

Find below full text of the Delta State 2020 Appropriation Bill presented to the House of Assembly by Governor Ifeanyi Okowa:

ADDRESS BY HIS EXCELLENCY, SENATOR, DR.
IFEANYI OKOWA, GOVERNOR OF DELTA STATE,
ON THE OCASSION OF THE PRESENTATION OF
THE 2020 BUDGET PROPOSALS TO THE DELTA
STATE HOUSE OF ASSEMBLY ON WEDNESDAY,
NOVEMBER 06, 2019

Mr. Speaker,

Honourable Members.

As is customary, it is important to express my
appreciation to this honourable House for the
opportunity to make this presentation today. As an
elected Governor, I consider myself and, indeed, the
State blessed by the candour and civility with which this
House conducts its business. It is one that makes for
unabridged development and I continue to count on this
strong partnership as we strive to build a Stronger Delta

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standing on the tripod of Prosperity, Peace and
Progress.
2. I will begin by saying that I am presenting this
budget from a position of cautious optimism. Several
reasons account for this.
• Beginning with recent trends in the oil sector, the
mainstay of the national economy, there are major
policy issues which face the country, not only in this
new budget year, but over the medium term, which
will impact significantly on politics and governance
at all levels of Government.
• Although the global price of oil remains relatively
stable at about $57 per barrel, it is still low and
under the federal budget benchmark of $60.
Matched against the fluctuating oil production
levels, which, in recent months, dropped to as low
as 1.78mbpd as against the projected 2.18mbpd,
there is serious cause for concern.

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• Coupled with the commencement of the deduction
at source of the Bail Out Funds to the States by the
Federal Government, we are faced with the
prospects of continual fiscal adjustments that will
doubtless be challenging and problematic.
• Although all available indices project a positive
national economic outlook in 2020, the cost of
governance at all levels of government is at the
same time expected to rise sharply with the
implementation of the new minimum wage.
• The new VAT regime of 7.5%, designed to shore up
the national revenue, more than likely, will not
induce any dramatic changes in terms of the net
gain to the fiscal revenue as the anticipated
increase will largely be offset by the attendant rise
in the cost of goods and services as well as the new
minimum wage.
• While the various reforms and fiscal adjustments of
the last four years of this administration have placed

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Delta State on a much more secure and sustained
growth trajectory, our GDP is still dominated by the
oil and gas sector notwithstanding significant
incremental outputs from the social services and
agriculture sectors.
• The pension liability of the State remains onerous
and continues to exert a huge toll on our finances.
• Private investment is still hampered by
environmental factors, notably high interest rates,
macro-economic instability and security concerns.
3. Given the above scenario, the 2020 budget
proposals, the first in the second tenure of this
administration, is a critical budget and even if we focus
on one objective, that of achieving stability in
governance, it is one requiring deep introspection and
public understanding. The broad strategy of the budget,
therefore, is to:
i. Achieve fiscal stability and promote accountability
as imperatives for sustained economic growth;

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ii. Prioritise efficiency in expenditure through
stringent control on non-productive expenditure,
judicious allocation of resources and cost
effectiveness of project delivery;

iii. Accelerate rural-urban integration and urban
renewal through roads and flood control
infrastructure, markets development, housing and
sanitation;
iv. Grow the non-oil sectors to produce an
economy that is truly diversified, self-reliant,
resilient and that can withstand external shocks;
v. Continue to pursue Health for all Deltans
(HeFAD) in line with the Universal Health
Coverage mandate of the United Nations
Sustainable Development Goals;
vi. Increase investment in youth entrepreneurship
development programmes as well as
technical/vocational education designed to foster

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a new generation of wealth creators, business
leaders and managers;
vii. Deepen and strengthen our social investment
programmes for improved protection of the poor
and vulnerable segments of the society;
viii. Escalate our peace building initiatives to secure
our oil and gas installations, ensure public safety
and engender an investor-friendly climate;
ix. Boost revenue through widening of the tax
base and administration of a functional tax regime
that is fair, just and equitable; and
x. A more responsive and efficient public sector.
KEEPING THE MOMENTUM GOING
4. As usual, I will precede my presentation this
morning by acquainting you with some important
developments in our State since I was sworn into office
for a second term.
The Future of Asaba Airport

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5. We achieved another breakthrough with Asaba
Airport in August this year with the approval by the State
Executive Council for the concessioning of the Airport to
a consortium of investors led by Menzes Aviation, a
world-renowned aviation company. It is the first full
brownfield airport concession in Africa and a hybrid
arrangement covering further development and
management of the airport.
6. Key highlights of the transaction are as follows:
– Menzies Aviation to manage the Airport and provide
airline support services;
– First Investment Development. Company to build
Radisson Blu Hotel and Convention Centre at the
Airport;
– Air Peace to operate as Anchor Airline and to build
and operate a commercial Maintenance, Repair and
Overhaul Facility;
– Rainoil to operate the Tank Farm and provide Jet
A1 Fuel for Aircraft;

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– Cybernatics to develop the Cargo Terminal and
Logistics Centre;
– Quorum Aviation to build private jets terminal and
operate helicopter services for the oil and gas
industry; and
– Arbico Construction company to develop and
manage the business park.
7. The concession is, in the first instance, for a period
of 30 years with annual concession fee of N100m
payable to the Delta State Government, escalating by
10% every five years. There is also annual royalty of
2.5% of Gross Annual Revenue payable to the State.
With over N28b expected to be pumped into the airport
development by the concessionaire over the next three
years, the benefits to the State in terms of employment
opportunities, urban renewal and tourism potentials are
enormous.
Kwale Industrial Park

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8. As you are aware, I just returned from China where
we held a Road Show for the proposed Kwale Industrial
Park. It afforded the State Government delegation the
opportunity to market the Park and our State to the
Chinese business and investment community. So far,
we have received expression of interest from companies
willing to establish a glass factory, ceramics factory and
an agro-allied industry for soya beans.
9. In a meeting with another group of investors in
Nanjing, Jiangsu Province, a company with a 400-metric
tonne capacity methanol plant indicated its readiness to
immediately set up a plant at the Park. It was agreed
that a team from the State would visit their factory within
the next month while officials of the company are to
come for a site visit immediately thereafter. The
company is hopeful of moving their operations to Kwale
Industrial Park within the first half of 2020.
10. To refresh our memories, the Kwale Industrial Park
is designed to profit from the competitive advantage of

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the State in the gas and energy sector. Located along
the Ughelli-Asaba road, the Park is envisaged to be one
of Nigeria’s biggest location for gas and energy intensive
manufacturing, encompassing ceramics, rubber,
methanol, pulp and paper. It is a mix-use
industrial/business location featuring industrial,
commercial, administrative and residential sections in
the Park. Heavy and light manufacturing activities will be
in the industrial sector while schools, shopping centres,
banking halls and recreation facilities will be
concentrated in the commercial sector.
11. Once fully operational, the Kwale Industrial Park is
expected to be a major driver of this administration’s
industrialisation agenda and provide immense
employment opportunities for our people.
Agro-Industrial Park, Aboh-Ogwashi-Uku
12. In line with the agricultural transformation and
wealth creation objectives of this administration, the
State Government is implementing a public-private

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partnership for the establishment and operation of an
Agro-Industrial Park at Aboh Ogwashi-Uku in
partnership with Mirai Technologies Ltd as technical
partner and anchor investor, and Norsworthy
Investments Ltd. as participating investor.
13. Following rigorous project appraisal and the
completion of all design-phase activities, the project
development is currently at financial closure, preparatory
to the construction phase. When fully established, the
Agro-Industrial Park will be the principal catalyst of the
agricultural commodity value chains, create thousands
of new jobs and multiply wealth for the teeming youth
and agricultural population of the State.
14. In the 2020 fiscal year, the construction and
development of the Agro-Industrial Park will be
prioritized among the crucial public investments of the
State Government.
Opening the Riverine Communities through Road
Infrastructure

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15. On July 12, this year, this administration recorded a
major feat with the commissioning by Vice-President
Yemi Osinbajo of roads in the hitherto neglected riverine
communities, notably the 20.29 km Obotobo 1- Obotobo
11 – Sokebolou – Yokri, Township roads (Phase 2) and
the Main Axial Road at Okerenkoko in Warri South West
Local Government Area. In the case of the Obotobo 1 –
Obotobo 11 – Sokebolou – Yokri road, it is not just the
length of the road that makes this project unique; it is
that the road is located right beside the Atlantic Ocean
with all the human, material, ecological and financial
implications that this difficult terrain presents.
16. Also, this major access road in Ogulagha Kingdom
cuts across four communities that contribute a large
chunk of crude oil to the national economy as well as
right through the various oil production companies and
the oil pipelines manifolds along the road. It goes
without saying, therefore, that this road would ease the
movement of people, goods and services within the

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communities as well as improve their socio-economic
life.
17. Similar road projects undertaken by this
administration in riverine communities include the paving
of Burutu Township roads, on-going construction of
Rigid Concrete Pavement Road at Ogidigben,
construction of Access Road to Nigeria Maritime
University Okerenkoko (Kurutie Campus), construction
of Oporoza Palace Road in Gbaramatu Kingdom, all in
Warri South West Local Government Area, as well as
the Construction of Ogulagha/Youbebe/Biniebiama
Road, in Burutu Local Government Area.
18. These projects demonstrate our commitment to
bring development to every part of the State, no matter
how remote. Furthermore, they have greatly helped to
ensure peace in the State, which bodes well for
uninterrupted oil production and the health of the
national economy. As I remarked during the June 12
commissioning ceremony, “it is a triumph of will over

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danger, hard work over resignation and determination
over adversity.”

Warri, Uvwie and Environs Storm Water Drainage
Project
19. The State Government has commenced the
process of constructing a massive storm water drainage
project in Warri, Uvwie and Environs to tackle the
recurring problem of flooding and environmental
degradation in the area. Before now we appointed a
consultant, who, working with a Government-appointed
Committee studied the problem of perennial
flooding/erosion in Warri, Uvwie and Environs, and drew
up a Master Plan to tackle the problem.
20. Given the massive nature of the project and the
huge costs involved, the State Government has decided
to execute it in phases. The first and second phases,
expected to commence this dry season, will cover the
high-risk areas within the Warri metropolis. It will involve

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desilting of natural drainage channels (some of them will
be dredged), demolition and reconstruction of
undersized drains and construction of new water
channels. We are currently processing the award of
contracts for the first two phases worth N9.5b Hopefully,
we should be able to complete the project in good time
so that our people can have some relief when the rains
come.
School Census, Audit and Mapping
21. Through the Ministry of Basic and Secondary
Education, we have commissioned a comprehensive
study of all public primary and secondary schools in
Delta State. This study is being carried out by a
renowned international research company to assess the
current state of our primary and secondary schools,
especially in terms of physical infrastructure, manpower
distribution and curriculum development. The outcome
of this study will guide future government intervention

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and the construction of infrastructural facilities in our
primary and secondary schools.
REVIEW OF THE YEAR 2019 BUDGET
22. I will now begin my presentation by reviewing the
performance of the 2019 Budget.
COMPONENTS OF THE 2019 BUDGET
23. During the 2019 fiscal year, Government budgeted
the sum of three hundred and ninety billion, three
hundred and seventy-eight million, six hundred and
seventy-one thousand, one hundred and seventy-eight
naira (N390,378,671,178). This comprised One Hundred
and Fifty Seven Billion, Ninety Six Million, Twenty Nine
Thousand, Two Hundred and Fifty Three Naira
(N157,096,029,253) for recurrent expenditure, and 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) for capital expenditure.

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24. The main sources of funds for the 2019 budget:

Revenue Sources

Approved Budget
2019 % Approved

Internally Generated
Revenue 73,410,363,076 18.80
Statutory Allocation
Including Mineral Revenue
Derivation 217,894,748,193 55.82
Value Added Tax 13,051,179,721 3.34
Other Capital
Receipts/Miscellaneous 86,022,380,188 22.04

Total Revenue

N

390,378,671,178 100

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2019 REVENUE PERFORMANCE

DETAIL OF
ITEM

APPROVED
BUDGET 2019

PROPORTIONAT
E BUDGET JAN –
AUGUST, 2019

ACTUAL JAN –
AUGUST, 2019
%
PERF

Internally
Generated
Revenue 73,410,363,076 48,940,242,051

36,168,411,689

73.90

Statutory
Allocation
Including Mineral
Rev. Derivation 217,894,748,193 145,263,165,462

151,224,187,289

104.10

Value Added
Tax 13,051,179,721 8,700,786,481

10,025,753,736

115.23

Other Capital
Receipts/Miscell
aneous 86,022,380,188 57,348,253,459

41,138,071,875

71.73

TOTAL
REVENUE

390,378,671,178

260,252,447,452

238,556,424,588

91.66

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25. Despite some economic hiccups at the national and
sub-national levels, the State was able to record
improved performance in statutory allocation and Value
Added Tax. The Statutory Allocation in the first eight
months of the year brought in the sum of one hundred
and fifty-one billion, two hundred and twenty-four million,
one hundred and eighty seven thousand, two hundred
and eighty nine naira only (N151,224,187,289) as
against the proportionate sum of one hundred and forty-
five billion, two hundred and sixty-three million, one
hundred and sixty-five thousand, two hundred and
eighty-nine naira (N145,263,165,462) amounting to
104% performance.
26. From Value Added Tax, we received ten billion,
twenty-five million, seven hundred and fifty-three
thousand, seven hundred and thirty-six naira
(N10,025,753,736) against the proportionate budget of
eight billion, seven hundred million, seven hundred and

20

eighty-six thousand, four hundred and eighty-one naira
(N8,700,786,481) or 115%.
27. As at August, Internally Generated Revenue has
raked in the sum of thirty-six billion, one hundred and
sixty-eight million, four hundred and eleven thousand,
six hundred and eighty-nine naira (N36,168,411,689),
amounting to 74% budget performance. This relatively
good performance in all revenue streams could be
attributed to increased oil sales and improved
performance of our revenue collection efforts.
28. Our overall revenue performance for the first eight
months of the year (January to August), 2019 amounted
to two hundred and thirty-eight billion, five hundred and
fifty-six million, four hundred and twenty-four thousand,
five hundred and eighty-eight naira (N238,556,424,588)
as against the proportionate approved budget of two
hundred and sixty billion, two hundred and fifty-two
million, four hundred and forty-seven thousand, four

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hundred and fifty-two naira (N260,252,447,452), which
is approximately 91.66% performance.
2019 RECURRENT EXPENDITURE PERFORMANCE

Recurrent
Expenditure

Approved Budget
2019

Proportionate
Budget Jan –
August, 2019

Actual Jan –
August, 2019

%
Performanc
e

Personnel
Costs 66,165,356,710 44,110,237,807

52,672,774,467 119.41

Overhead
Costs /
Consolidated
Revenue Fund
Charges 90,930,672,543 60,620,448,362

65,863,716,264 108.65

TOTAL
RECURRENT
EXPENDITUR
E

157,096,029,253

104,730,686,16
9
118,536,490,731 113.18

29. The recurrent budget for year 2019 is one hundred
and fifty-seven billion, ninety-six million, twenty nine
thousand, two hundred and fifty three naira
(N157,096,029,253) with eight months proportionate
budget figure of one hundred and four billion, seven
hundred and thirty million, six hundred and eighty six
thousand, one hundred and sixty-nine naira
(N104,730,686,169). The actual expenditure within the

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period under review is one hundred and eighteen billion,
five hundred and thirty-six million, four hundred and
ninety thousand, seven hundred and thirty-one naira
(N118,536,490,731) or 113.18% budget performance.
30. One of the transactions that accounted for the
robust performance is our resolve to clear all backlog of
workers promotion arrears, some dating back to 2013.
This accounts for the high personnel cost performance
for the period under review.
31. Against an approved budget of sixty six billion, one
hundred and sixty five million, three hundred and fifty six
thousand, seven hundred and ten naira
(N66,165,356,710), the sum of fifty two billion, six
hundred and seventy two million, seven hundred and
seventy four thousand, four hundred and sixty seven
naira (N52,672,774,467) was spent on payment of
salaries for the period January to August 2019.
32. Matched with the proportionate budget of forty-four
billion, one hundred and ten million, two hundred and

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thirty-seven thousand, eight hundred and seven naira
(N44,110,237,807), this accounts for a performance of
approximately 120%.
33. In keeping with our desire to continue to motivate
our workforce in order to elicit the highest level of
productivity possible, Government has thus far cleared
all historical arrears that have to do with workers’
salaries.

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

131,064,846,28
3 87,376,564,189

107,731,419,56
1 123.30

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

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Contingency
Fund

3,000,000,000 2,000,000,000 – –

CAPITAL
EXPENDITURE

233,282,641,92
5 155,521,761,283

139,450,687,61
7 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

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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

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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

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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

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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

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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

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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

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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.

DELIVERING QUALITY HEALTHCARE
46. Health is a right and quality healthcare delivery is a
cardinal objective for government at all levels. This
administration has remained passionate, deliberate and
focused in its quest to formulate tangible and lasting
policies and programmes for improving the health of all
residents in the State. The overarching goal of my
administration is to achieve Universal Health Coverage

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(UHC), by providing quality healthcare services that is
readily accessible to all residents in the State
irrespective of their status in the society and their
residential location.
47. We are making steady progress in our
implementation of the Universal Health Coverage being
implemented and managed by the Delta State
Contributory Health Commission. As at September
2019, the total number of the enrolees registered under
the scheme was 657,436.

— equity plan: 499,158;
– formal plan enrolees: 150,170,
– informal Plan: 8,108.
48. To boost informal sector registration, the
Commission has deployed Community Based Liaison
Officers (CBLOs) and supervisors across the State.
Their main function is to implement a “compound to

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compound” advocacy about the benefits of participation
in a health insurance scheme, adoption of better health
seeking behaviours, uptake of better living standards
and upfront prioritization of expenditure for health
through payment of premium for health insurance.
49. There will be family discounts for group premium
payment, and payments can be done in convenient
instalments. Wealthy individuals and philanthropists in
the area will be encouraged and supported to make
premium contribution(s) on behalf of the poor and
vulnerable in the various communities. Efforts are also
being made to leverage on the implementation of the
Basic Healthcare Provision Fund (BHCPF) to enhance
the Informal Sector registration through the integration of
the Basic Healthcare Provision Fund and the Delta State
Contributory Health Scheme.
50. Our administration has also made significant
progress in the upgrading of public healthcare facilities
spread across the State. Through the efforts of the State

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Primary Healthcare Development Agency, the Ministry
of Health and other State Government agencies, 107
Primary Healthcare Facilities and 63 General Hospitals
have been fully functionalised to meet up the basic
requirements of the Federal Ministry of Health for the
implementation of the Basic Healthcare Provision Fund.
51. Through the “Access to Finance” programme, a
PPP initiative between the Delta State Government,
Bank of Industry and the Pharmaccess Foundation, to
revitalize and operationalize defunct healthcare facilities
in rural communities, healthcare services and the
benefits of the State health insurance scheme have
been extended to remote communities in Delta State
with significant benefits already being recorded.
52. What this means is that a total of 395 public primary
and secondary healthcare facilities including private
healthcare facilities were inspected and accredited to
provide healthcare services under the Delta State
Contributory Health Scheme. The Commission

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(DSCHC) is also implementing a governance
framework, an organizational structure and an elaborate
ICT enabled operations tool for the scheme.
53. With the several initiatives through Public Private
Partnerships, this administration is addressing the
problem of “Brain Drain” in Nigeria by turning it around
to a “Brain Gain” towards Delta State. Private sector
participation in the Delta State healthcare space is being
supported and encouraged with favourable incentives
and a ready pool of patients under the Delta State
Contributory Health Scheme.
54. We intend to have doctors and other healthcare
service professionals, consulting at the various primary
healthcare centres in Delta state on full time or
scheduled visiting status to boost quality healthcare
services across the State. The Delta State University
Teaching Hospital Oghara, and the Asaba Specialist
Hospital are currently being renovated and upgraded for
specialized healthcare services that will boost medical

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tourism in Delta State. Meanwhile, special intervention
programmes for HIV care, TB management, birth control
activities and mental healthcare services are being
planned for incorporation into the State Health Insurance
programme for sustainability.
55. Let me also acknowledge the invaluable
contributions of the 05 Initiative to healthcare delivery in
the State. Headed by the Wife of the Governor, the Non-
Government Organisation has constructed and
equipped 12 Sickle Cell Clinics in the State, including a
world class referral centre in Asaba. These clinics will
boost healthcare services and other necessary social
support for people living with the Sickle Cell Disorder not
just in Delta State but from all over the country.
56. The sum of N9.7 billion is proposed for the health
sector in the 2020 fiscal year.
ENERGY
57. Mr. Speaker, the availability of reliable power supply
is a critical input to production of goods and services in

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the economy. Availability of power supply can also
contribute to the improved living conditions of all
households, especially in the rural areas. In this regard,
this Government has continued to invest in power
generation and distribution in order to support economic
growth, promote employment creation and improve the
living standards of the citizens.
58. In our first tenure, we provided electricity to more
towns and villages than the number we met on ground.
We shall continue to improve the tempo in order to
enhance power supply to reach more towns and villages
in the State. The target of this administration is to keep
intervening in the provision of electricity infrastructure in
both the urban and rural communities of the State to
ensure the well-being of our people and promote socio-
economic activities. In the medium and long term, the
Government will seek alternative means of providing
steady and sustainable electricity power supply to all
Deltans.

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59. The sum of N3.6 billion is proposed for the energy
sector in the 2020 fiscal year.
WATER RESOURCES
60. To boost service delivery in the provision of potable
water in the State, Government has proposed to spend
N2.5b in the 2020 fiscal year.
61. We have domesticated state of emergency in the
water sector (WASH) as declared by the Federal
Government. We have also set up an inter-ministerial
steering committee on water sanitation and hygiene to
ensure effective implementation of the goals. The focal
point of the state of emergency is to work towards
ending open defecation in the State in no distant time.
AGRICULTURE
62. Our commitment to our farmers runs deep. One of
the key elements of the agriculture-based job and wealth
creation strategy of this administration is the market-
oriented development of the commodity value chains.

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Within this context, the Delta State Foods Export
Initiative was set up to link farmers and processors to
domestic and export markets in order to ensure better
prices and sustained higher incomes. The initiative
started, on a pilot scale, with the production, packaging,
branding, international certification and successful
export of high quality garri to the United Kingdom.
63. Through this pilot initiative, this administration has
demonstrated that it is achievable to reach high
standards of food quality and export same to Nigeria
diaspora markets across the world. Specifically, the
initiative has attained four fundamental enablers of foods
export namely;
– the creation of food quality assurance and verification
mechanisms along the cassava-garri value chain;
– the establishment of food quality testing laboratory;
– the establishment of state-of-the-art garri packaging
factory at Issele-Uku; and

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– the existence of diaspora off takers of the high quality
garri.
64. The immense impacts of the foods export project on
job and wealth creation along the commodity value
chain is evidenced by the initial direct and indirect
economic benefits and incentives to cassava farmers,
processors and logistics operators.
65. In the 2020 fiscal year, we will aim at consolidating
the success of the pilot initiative to strengthen already
established systems and upscale foods export. Efforts
will be directed to cover more cassava processors,
improve training of value chain operators, streamline the
cassava supply chain, expand market off-take and
enhance capacity utilization at the Issele-Uku packaging
factory.
66. The sum of N2.0 billion is proposed for the
agricultural sector in the 2020 fiscal year.
JOB CREATION

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67. The faithful implementation of our job creation
programmes in the last four years is ensuring a stronger
and more resilient economy and better living conditions
for Deltans. The impacts of these programmes,
particularly the Skills Training and entrepreneurship
Programme (STEP) and Youth Agricultural
Entrepreneurs Programme (YAGEP), have been felt by
various segments of Delta society – unemployed youths,
workers, micro, small and medium enterprises, Persons
with Disabilities (PwDs), farmers, traders and so on.
68. One remarkable social impact of the job creation
programme is the mind-set shift, among youths, from
government (salaried) employment to entrepreneurship
and self-employment. Through the training and
reorientation modules of STEP and YAGEP, the youths
are imbibing the principles of skills acquisition and
entrepreneurship as a viable employment option. They
are now looking beyond and outside their academic

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certificates for employment and livelihoods, as owners
and managers of skills-based enterprises.
69. The job creation programme is also impacting
positively on the growth and development of Micro,
Small and Medium Enterprises (MSMEs) sector in the
state. By providing services as training centres,
facilitators and mentors to the job creation programme,
hundreds of small and medium enterprises have been
stimulated and supported to upgrade their technical,
entrepreneurial and managerial capacities, increase
visibility/patronage and improve the quality of their
services and achieve enterprise development.
70. In line with the goal of strengthening job and wealth
creation, efforts will be devoted in the year 2020 towards
consolidating on the impacts already achieved,
upscaling the coverage and institutionalization. The sum
of N1.5 Billion is proposed for the Job Creation Office in
the 2020 fiscal year.

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CONCLUSION
71. As I stated at the beginning of this presentation,
there are challenges ahead, some domestic, some
international. The best we can do is to prepare
ourselves against any future “shocks” and their probable
impact on the performance of the economy. The
reduced size of the 2020 budget compared to last year’s
budget is evidence of our continued commitment to
fiscal prudence.
72. Towards this end, at least 70% of the provision from
the budget envelopes (capital limits) are to fund the
relevant budget lines for:

(i) certified jobs already listed, awaiting
payment;
(ii) certified jobs yet to be listed for payment;
(iii) jobs executed awaiting certification at the
MDAs;
(iv) contracts awarded which are currently
being executed by the contractors.

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73. The balance 30% is to be applied to very critical,
essential and key capital projects with measurable
socio-economic value. To support these efforts at fiscal
prudence, we have intensified the implementation of the
Integrated Payroll System across MDAs to automate
personnel records and salaries’ payment process, with
the goal of eliminating ghost workers.
74. I am happy to report that the credibility of our
Government has continued to attract local and foreign
investors, and Delta ranks very high on the Ease of
Doing Business index today. Going forward, it is very
important that we strengthen the partnership with the
Federal Government and continue to support and
promote micro and small businesses to expand the
economy.
75. Let me now take few minutes to appreciate all the
officials who, and institutions which worked tirelessly to
put this budget together. Specifically, I thank the
Ministries of Economic Planning and Finance, the Office

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of the Accountant-General, the Directorate of
Government House and Protocol, and Chairman and
members of the Internal Revenue Board.
76. I also express my gratitude to the Deputy
Governor, Deacon Kingsley Burutu Otuaro, and the
other members of the State Executive Council for their
zeal and dedication. As is often the case, no Ministry,
Department or Agency got all that they wanted. It is the
very nature of budgeting where needs always exceed
available resources.
77. That notwithstanding, I solicit the understanding and
support of all MDAs to continue to cooperate with one
another for the development of a Stronger Delta where
prosperity, peace and progress reign. It is in that spirit of
unity, cooperation and collective responsibility that we
will be able to successfully tackle and overcome the
challenges that confront us now and in the medium
term.

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78. It is on this note, Mr Speaker, that I present the
2020 Budget Proposals for debate and passage by this
honourable House.
79. Thank you for your time and attention.
80. God bless Delta State.
81. God bless us all.

Office of the Governor
Government House
Asaba
October 2019.

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