2024 BUDGET SPEECH
Budget of Sustained Growth & Development
PROTOCOLS
It is with great honor and gratitude to the Almighty God and a unique sense of appreciation that I stand before this Honorable House and esteemed stakeholders of Ogun State, to present the 2024 Appropriation Bill of our great State for the first time in the second term of our Administration. Permit me to seize this opportunity to sincerely thank the esteemed citizens and residents of this dear State for the mandate to serve for another four years, following the Guber- elections held earlier in March this year. We are also grateful to God for the victories at both the State Governorship Election Petition Tribunal and the Court of Appeal.
The mandate depicts the continuous trust of the people in me to lead Ogun State to serve God and humanity. By this accord; I will govern with character, I will serve you with humility, diligence and utmost sincerity; I will operate with equity, Justice, transparency, accountability, honesty and fairness and above all, I will uphold the rule of law, protect the interests of our citizens and I will not betray your trust with this renewed mandate.
We started this fruitful journey together a little over four years ago with a glowing vision of “Building Our Future Together”. This theme stems from our recognition that collective governance is one of the greatest factors required to move our State forward. Unequivocally, the good people of Ogun State have been dependable partners in the growth of our dear State, by exhibiting exemplary ideals as well as constructive criticisms targeted at building our future together.
To the glory of God, we have been able to cover reasonable grounds across the State, through our commitment to wholesome and sustainable development of all parts of our dear State, while maintaining the momentum in the delivery of our “ISEYA” core mandate. This new mandate has given us renewed Vigour and Commitment to complete all the development projects and initiatives we started during the first term of our administration but in addition to break new grounds in our development agenda towards the social upliftment of our citizenry and the economic transformation of our dear state. New frontiers are set to be accomplished in our quest to constantly break records in different areas of our ISEYA Mantra, despite the harsh socio-economic conditions prevalent across the globe.
INFRASTRUCTURE DEVELOPMENT
Under the pillar of Infrastructure, our administration has brought development to every ward in the 20 Local Government Areas of the State. Across the three senatorial districts, we have constructed, reconstructed, and rehabilitated over 500 kilometers of roads. Notable among them in the Ogun Central Senatorial district is the 45KM Sagamu Interchange-Siun-Abeokuta Expressway, now renamed the Muhammadu Buhari Expressway, a marvel of engineering that ensures both pleasurable and timely safe driving experiences as well as improved productivity.
In the Ogun East Senatorial district, we have developed the 14KM Ijebu Ode-Epe Mojoda expressway, connecting our State to Lagos and stimulating industrial growth in the area. This road serves as an evacuation corridor for all the industries within Lekki Free Trade Zone and the Epe corridor in Lagos State.
Additionally in the Ogun West Senatorial District, the ongoing construction of the 19KM Atan-Lusada-Agbara expressway. This will be accelerated to ensure speedy completion, to further facilitate access to the Agbara Industrial Estate, the largest industrial Estate West Africa..
Apart from these landmark road projects, other major city, township and rural road projects spread across all the four zones of the State, that is, Remo, Ijebu, Yewa, and Egba. Some have been newly constructed, rehabilitated, or reconstructed. These roads were chosen by our administration after consultation with our people at the grassroots including traditional rulers, youth groups, business groups, labor, and students. This is in line with our policy of inclusiveness and determination to abolish erstwhile practices of prior administrations of developing one section of the state at the expense of other sections. I remain committed to an even and balanced development of all parts of our dear State as the Governor of the whole of Ogun State. In addition to these major road construction projects, we have increased the tempo of road rehabilitation and maintenance across the State through the recently-rreinvogorated Ogun State Public Works Agency (OGPWA) while also improving the construction of rural roads through the Ministry of Rural Development and other relevant agencies in order to improve transportation access towards improved logistics and distribution of agricultural produce from farm to markets.
As we strive to connect every nook and cranny of our dear state. It’s important to highlight some major ongoing road construction work since the last time I was here including but not limted Illaro-Owode Road, Lafenwa-Rounder-Ayetoro Road; Akute-Denro-Ishashi Road; Sango Ota – Ijoko Agbado – Oke Aro – Lambe – Akute – Alagbole – Ojodu – Abiodun Road; Siun-Ogijo road among others.
ENERGY AND GREEN INITIATIVES
Our commitment to infrastructure development extends to the energy sector. With the installation of over 500 transformers across communities, our Community Electrification Project has improved power supply in the 20 Local Government Areas, while the expansion of the Ogun State Electricity Distribution System will cover more areas especially the corridor from the Sagamu Interchange to Abeokuta (As a phase 1 Project). As part of initiatives in our recently-launched Energy Transition Programme, we have also recently launched our CNG-fueled mass transit bus system in partnership with the private sector to reduce transportation costs for our citizens. We will be launching the Mowe/Ibafo to Lagos service route to service the citizens in that corridor. Ogun State is leading the pack in energy transition as we are on record as the first state to deploy these buses in Nigeria. As a result of our boldness and tenacity in steps taken to cushion the effects of the subsidy removal and high cost of diesel fuel, we have been selected to host the 18th National Council on Transport Conference where the new National Policy on Transportation will be formulated. We are exploring green energy solutions, leveraging liquefied or compressed natural gas to power homes, industries, and commercial vehicles.
To mitigate deforestation and support a green climate economy, over 700,000 seedlings of various species of trees were planted in the nine forest reserves across the three Senatorial Districts of the State. This and many other agriculture intervention programs were put in place during the last 12 months.
RURAL DEVELOPMENT AND WATER SUPPLY
Rural development has been a key focus for us as well. Our administration has implemented several sustainable solutions in rural development, such as the provision of solar street lights, solar boreholes for potable water, and the distribution of Solar Home kits to rural dwellers. . As part of the AFD-Funded (French Development Finance Organization) Water Supply project in Abeokuta, we have also rehabilitated the Arakanga Waterworks in Abeokuta to ensure a reliable supply of potable water and constructed new water Storage facilities as well as expand the water supply and reticulation network to many streets and neighborhoods in the city of Abeokuta. These completed projects, which are already in use and being enjoyed by our people will soon be formally commissioned. We are currently at the planing stage of expanding the reticulation network into new areas within the state while rehabilitating all our Mini Water works in othe parts of the State for improved water supply for our people.
TRANSPORT
In our quest to make Ogun State a modern city with diverse transportation options, we have established the Ministry of Transportation and developed the Ogun State Urban Transport Policy and Strategic Multi-modal Transport Master Plan which is currently being meticulously implemented. This includes optimizing the Gateway Status of Ogun State through the implementation of a multi-modal transportation network. comprising air, rail, road, and water transport infrastructure network.
AGRO-CARGO INTERNATIONAL AIRPORT
An emblematic feature of our Multi-modal Transport Master Plan is the Gateway Agro-Cargo International Airport which is one of the crowning achievements of our clear vision. Situated along the Iperu-Ilishan Road in Ikenne Local Government Area, this world-class airport, covering 800 hectares of land, is designed to handle cargo, including agriculture-related cargo, and passenger services. The construction of this airport which started in March 2022 has witnessed the completed 4-kilometer runway and near completion of other state-of-the-art facilities including the control tower, apron, fire-station, administrative building terminal and cargo warehouse builds, and a parking lot. This construction has progressed rapidly, positioning it to be one of the fastest-built airports in Africa.
The accompanying aerotropolis (airport city) spans 5000 hectares and has already attracted Federal Agencies, foreign investors and various businesses, including international logistics companies, a maintenance and repair operations facility, and agro-processing industries. We have also received several unsolicited proposals on concessions at the airport. We have evaluated and will be announcing and signing a major concession deal with a private sector player that will pay the state a percentage of their revenue during the term of the agreement in addition to a concession fee that will see us recoup the State’s government investment so far in the project. Commercial operations will soon commence at the airport.
The State entered into a development agreement with a private sector company, Arise IIP towards the development of an agro-processing zone covering about 2000 Hectares as a Special Agro Processing Zone (SAPZ). The SAPZ wil be the first of its kinds.
Upon completion, the airport and its allied businesses in the aerotropolis, are expected to generate over 25,000 direct and indirect jobs.
ICT AND DIGITAL ECONOMY
To achieve our vision of total broadband coverage, we have launched the Digital Economy Infrastructure Project. This initiative, which is currnetly ongoing aims to provide 5000 kilometers of optic fiber cables across the State. This will be of interest ot a lot of business including our youth.
Thousands of youths, including girls, have been trained at the Ogun State Tech Hub to prepare them for the emerging digital economy not only in the State but also in areas of national and international interests.
EASE OF DOING BUSINESS & INVESTMENT PROMOTION
We have also invested in automating business processes to improve efficient and the Ease of Doing Business Index in the State. Many processes including initiating requests for permits, tax administration, and payments which were hitherto time-consuming can now be initiated and completed online. These include the following:
Billing & Payment Management System (BPMS):
Ogun State Payment Portal
The Land Use and Amenities Charge (LUAC) Portal
Ogun State Land Administration and Revenue Management System (OLARMS):
Payment Validation System (PayVal)
OGTAX Tabacci Platform:
Ogun State Tertiary Education Revenue and Management System (OGTERMS) and Ogun State Basic Education Revenue Management System (OGBERMS):
Business Premises Permit Portal:
eMPPUD Portal
Furthermore, in a bid to encourage investments from both local and foreign investors and create a business-friendly environment, under my leadership, we have set up and operationalized the Public Private Partnership (PPP) office, the Investment Promotion and Facilitation Agency (OgunInvest) and the Business Environment Council (BEC) all to make investing and doing business in Ogun State easy through a one-stop shop platform and improved business processes.
As advancements in automation and anti-fraud capabilities continue to emerge, we have also introduced new capabilities in our CofO processes with a new 1-page double-sided CofO certificate set to debut tomorrow with the handing over of over 5,000 CofOs that were otherwise backlogged at the Bureau of Lands. Going forward, CofO issuance will now be issued electronically for the much-needed efficiency,
A recent report by BudgIT ranked Ogun State in the 7th position in the 2023 overall Fiscal Performance Ranking and 1st in most improved in Internally Generated Revenue (IGR) among the 36 States and the FCT. This affirms our position as the investment destination of choice as well as one of the most resilient states. We will continue in our drive towards attracting investors by providing the most business-friendly environment through well-thought-out policies assisted and driven by technology.
SOCIAL WELFARE AND WELLBEING
Under our social welfare and well-being developmental pillar, we have prioritized healthcare delivery and accessibility for all residents by increasing the capacity of our healthcare delivery system. Through an innovative hub and spoke model, we have renovated and equipped over 100 primary healthcare centers in 100 wards across the state, ensuring quality healthcare services at the grassroots level. The target is to have more than one PHC in each of the 236 wards by the end of our second term in office.
Furthermore, we have increased health care response via an ambulance system with the procurement and equipping of over 50 state-of-the-art ambulances for urban centers and about 100 tricycle ambulances for rural areas. With these ambulances, we are now running a 24-hour ambulance service manned by experienced medical personnel. This is a far cry from the 5 ambulances we inherited.
Apart from the PHCs, we have also upgraded facilities at our secondary and tertiary healthcare facilities. The Ilaro General Hospital and the State Hospital Ijaiye, Abeokuta, Ado-Odo/Ota and Ijebu-Ode have all benefitted from these interventions. Similarly, the General Hospitals at Ota and Ijebu Ife also benefitted through our partnership with the private sector via PPP arrangements.
The Olabisi Onabanjo Teaching Hospital, our premier tertiary healthcare research and training center located in Sagamu was given a massive rehabilitation in terms of infrastructure, equipment (including a CT Scan machine), and personnel, to make it a world-class center of medical excellence. For the first time in recent years, we recruited medical personnel in all cadres in the hospital across the board and inaugurated its Governing Council.
Our flagship health insurance scheme has made health care more affordable and accessible. We have also launched our “Ibidero” Program under our health insurance scheme specifically targeted at pregnant indigent women for pre-natal, delivery, post-natal and neo-natal care for free. Since its launch, together with other interventions, we have successfully reduced maternal and child mortality rates in the state.
Due to be completed before the end of the year, we have fully automated the Central Medical Store in Oke-Mosan to the World Health Organization (WHO) Standards in collaboration with our development partners.
You may recall the global pandemic of 3 years ago, where the first recorded case of COVID-19 in the country was in our State. As a responsive and responsible administration, we acted swiftly and decisively to confront the epidemic head-on. Our systematic and practical response became the template recommended to other States by national and global health regulatory agencies.
The 250-bed Specialist Hospital has also received several interests from across the globe and is at the last stages of finalizing the concession agreement.
We have and will continue to prioritize the well-being and welfare fare of health workers by the payment of the requisite hazard allowances.
HOUSING
Shelter remains one of humanity’s basic needs with the State is faced with a housing deficit. To address the housing deficit, we have constructed over 2,500 housing units for low, medium, and high-income earners.
This year alone, we have:
Started Construction of 200 units of high-end duplexes at PMB Estate, Kobape through a PPP program
Commenced development of Ibara and Idi Aba GRA Regeneration Schemes
Commenced construction of 200 units of Affordable Housing in Gateway Aviation Village, Iperu
Commenced construction of 250 units of Affordable Housing in Kobape Phase 3
Commence construction of 100 units of mixed Housing units at OPIC Estate, Warewa Isheri
WOMEN EMPOWERMENT
In the past four years, our Administration has prioritized women’s welfare, recognizing their significant presence in our population. We’ve implemented programs to boost the status of women by including them in politics, governance, and economic activities, as well as providing education for girls. Through the Oko’wo Dapo Women’s Empowerment scheme, over 50,000 women have grown their businesses, and with additional funding from the Federal Government’s Nigeria for Women Project, the total investment in women’s empowerment now stands at about N1.5 billion.
SECURITY
Ensuring security and safety for people and businesses is crucial for attracting investment (both local and foreign) and promoting economic growth. This is even more critical as we work towards achieving our ambition of promoting Ogun State as the fastest-growing economy in Nigeria and maximizing the potential of every citizen and resident of the State. Consequently, the issue of security is one that we take very seriously as a sub-national state. Towards ensuring peace in the State, we continue to strengthen the already established Security Trust Fund, by continuous procurement of relevant security gadgets including drones. We continue to augment the allowances and living conditions of our security personnel to enhance security and safety in the state. The State continues to various outfits including the Amotekun Corps with community leaders, and residents to implement effective strategies that have resulted in a significant reduction in crime rates. Our administration is committed to ensuring that every resident can live in a secure and peaceful environment. These efforts have made Ogun State an investment-friendly destination and contributed to job creation and revenue generation as part of a trickle-down effect on the economy. Regrettably, the unfortunate event of yesterday, which claimed the life of one of our dedicated staff members in the person of Taiwo Oyekanmi, is one scenario too many where enemies of our state tend to test our will. I want to implore us not to be deterred by this, as efforts are in top gear to bring these criminal elements to face the full wrath of the law.
EDUCATION
Education and human capital development remain key priorities in our vision for Ogun State. Upon assumption in office, I met a near comatose educational system. Knowing the dangers this posed to our future development and positioning as a State, I immediately declared a state of emergency in the sector. My team and I immediately went to work and invested significantly in the education sector, focusing on infrastructure development, capacity building for teachers, and access to quality education. Through our “Yellow Roof Revolution” investment drive we delivered the renovation and construction of over 1,200 classrooms and buildings across all 234 wards in the State together with over 5`0,000 new desks and chairs. provision of learning materials, and the implementation of the OgunDigiClass initiative, which utilizes technology for virtual learning, have greatly improved the learning environment and outcomes for students. We have also established technical and vocational training centers to equip youths with relevant skills for employment and entrepreneurship.
I am delighted that our efforts are reflected in their performances at various competitions, including public examinations. At various times, our students have emerged overall best at STEM competitions and global mathematics competitions, among others.
Similarly, we have also introduced ICT into the management of academic performance and administration in our schools such that each learner/pupil now has a unique identity number called LIN – Learner Identity Number. Interestingly, parents can access their wards’ report sheets online.
To address the shortage of teachers in our public schools, we have recruited 5,000 teaching interns under our OGUNTEACH program and recently converted 1,000 teachers from the program for permanent employment.
On the welfare front, apart from the continuous prompt payment of salaries of the teaching and non-teaching staff, we have also increased the running costs of our schools. and promoted over 265 deserving staff, especially Principal-Generals and Headteacher-Generals.
YOUTH EMPOWERMENT
Youth development and job creation are critical components of our clear vision. We recognize the potential of our youth population and are committed to harnessing their talents and energy. Through various initiatives, such as the Ogun Job Portal, Ogun TechHub, and Ogun Youths Empowerment Scheme (OG-YES), we are empowering youths with employment opportunities, entrepreneurship support, and access to funding and mentorship. Our focus on agriculture and agribusiness has also created avenues for youth engagement and employment in the agricultural value chain.
We have also partnered with development partners and private sector organizations to create internship and apprenticeship programs, providing practical work experience for young graduates, and improving their employability.
Recognizing the importance of technology and digital skills in today’s economy, we have promoted the adoption of digital literacy programs and ICT training for young people. By equipping them with digital skills, we are preparing them for the jobs of the future and enabling them to take advantage of opportunities in the digital economy.
SPORTS
Our administration has prioritized the upgrading of sports facilities in our stadiums over the past four years. By enhancing these venues, we aim to create an environment that fosters excellence and enables our athletes to train and prepare adequately for their respective sporting events. This commitment has yielded positive results, as our athletes have consistently performed exceptionally well in both local and international competitions.
One noteworthy achievement was our outstanding performance at the last National Sports Festival held in Asaba, Delta State. With great pride, we secured a total of 70 medals, placing us in the 8th position on the medals table. This accomplishment marked our highest rank in recent times and demonstrated our athletes’ capabilities and dedication.
Furthermore, as part of our ongoing efforts to solidify our position in the sports industry, we successfully won the bid to host the 22nd National Sports Festival in 2024. This upcoming event presents a tremendous opportunity for us to showcase and expose more of our promising sports talents. Additionally, hosting such a significant sporting event will have a positive impact on our local economy, with an estimated 17,000 athletes and officials from across the country expected to attend the sporting fiesta. Throughout the last four years, we have been fortunate to have the support of the private sector, who have been invaluable partners on this journey.
By continuing to invest in sports infrastructure and providing a platform for our athletes to excel, we are committed to nurturing talent and promoting sports development in Ogun State. We believe that our passion for sports will continue to unite and inspire our people while bringing honor and recognition to our great state.
AGRICULTURE AND FOOD SECURITY
Recognizing the crucial role of agriculture in ensuring food security and economic stability, our administration has placed a strong emphasis on agricultural development. Under the “A” pillar of our ISEYA development agenda, we have implemented various initiatives to boost agricultural productivity, empower farmers, and enhance food security in Ogun State.
We have also supported and subsidized grain supply to close to 14,350 farmers with inputs through the OGSTEP Agric program, OG-CARES FADAMA RA2 program, and the Value Chain Development Program (VCDP)
Our administration has also implemented various capacity-building programs to enhance the skills and knowledge of farmers. Through agricultural training and extension services, we have equipped farmers with modern farming techniques, best practices, and entrepreneurship skills. This empowers them to adopt innovative approaches, improve productivity, and access markets for their agricultural produce.
Our efforts in agriculture have yielded significant results, positioning Ogun State as a leading agricultural hub in Nigeria. We have won several awards at national and international levels. Our farmers have witnessed increased crop yields and improved livelihoods for farmers. Moreover, our agricultural interventions have contributed to the overall economic growth of the state and attracted investments from both local and international partners.
Today, we are the largest producers of cassava in the world, the largest producers of poultry products in Nigeria, and the largest producers of rice in the entire southwest of Nigeria. Our focus on agriculture is deliberate. We are an agrarian State with the potential to become the food basket of the nation.
In this regard, I again, affirm that no sector of our economy, nor any section of the State, will be developed at the expense of another. This Administration will continue with its diversification pursuit in bringing in new industries and maintaining existing ones while ensuring that the ease of doing business will remain seamless. Industrialization cannot be over-emphasized;
2023 BUDGET IMPLEMENTATION IN REVIEW
The Year 2023 Budget was a transition Budget titled “Budget of Continued Development and Prosperity “. It signifies the last leg of the first term and the commencement of the second term in Office. In the four years, the journey towards building our future together witnessed major progress in many areas of the ISEYA development pillars. To this end, the Year 2024 Budget is expected to sustain and improve on the gains so far made.
Mr. Speaker, Honourable Members, permit me to highlight some key elements of the Year 2023 Budget.
PARTICULARS
AMOUNT (N)
FUNDING SOURCES
Internally Generated Revenue
210,248,909,826.51
Expected Inflows from the Statutory Allocation, Value Added Tax, Capital Receipts, and others
262,001,784,621.06
TOTAL FUNDING SOURCES
472,250,694,447.57
EXPENDITURE
Recurrent Expenditure
202,644,755,724.25
Capital Expenditure
269,605.938,723.32
TOTAL EXPENDITURE
472,250,694,447.57
As of 30th September 2023, we had achieved 74.39% of the pro-rated revenue target. Budget credibility as determined by performance is better than we have ever had in the financial management history of Ogun State. We are poised to finish this year at well above 70% performance.
RECENT KEY ECONOMIC DEVELOPMENTS
The global economic recovery from the COVID-19 pandemic is slowing down because of recent world events which include Russia’s invasion of Ukraine, Military Coups across the Sub Sahara Region, and the recent Israel – Hammas War in the Gaza Strip. These challenges will continue to stall and distort the global socio-economic activities (which include food supply, energy consumption, and health care services).
The Federal Government and almost all states are currently contending with fiscal instability, slow growth, food crisis, and high interest rates. Like many others, our economy faces challenges of low revenues because of high inflation, subsidy removal, unification/ single foreign exchange rate by the Federal Government, and depreciation of the Naira.
However, with the support of my economic team, we will continue to work towards achieving much higher levels of growth, especially by harnessing our demographic dividend as well as our competitive and comparative advantages, so that the average Ogun citizen and resident can truly feel the impact of strategically planned economic growth and development. Our State remains a trade corridor and the Gateway to Nigeria’s prosperity because of its strategic location and proximity to the Republic of Benin and many Nigerian States especially Lagos.
With the creation of six (6) new economic development clusters (EDCs) namely Remo EDC, Ijebu Ode EDC, Magboro EDC, Ado-Odo/Ota EDC, Abeokuta EDC, Imeko EDC, and the location of three (3) Free Trade Zones (FTZs) – Olokola FTZ, Igbesa FTZ and Kajola FTZ all with antecedent economies of scale advantage, the State is expected to consolidate its position as the industrial hub of choice in Nigeria and West Africa.
Overall, we expect that the State’s economy will continue to grow within the medium term of 2024-2026 given the present government’s apt fiscal interventions which are expected to boost productivity, encourage the growth of micro, small, and medium enterprises, boost industrial and agricultural production with positive ripple effects on purchasing power of consumers.
THEME AND PRIORITIES OF THE 2024 APPROPRIATION BILL
The Rt. Hon. Speaker and other Honourable Members of the Ogun State House of Assembly, I now proceed to the 2024 Appropriation Bill.
As you are aware, our Administration’s strategic imperatives and implementation road map; the 2024-2026 Medium-Term Fiscal Framework of the present administration is hinged on the five development pillars of I.S.E.Y.A.
In line with the dictates of the Fiscal Responsibility Law, 2020 (as amended), this Honourable House approved the 2024 – 2026 Medium-Term Fiscal Framework (MTFF) and Medium-Term Budget Framework (MTBF).
The Ogun State House of Assembly approval became a veritable fiscal instrument for further engagements with all stakeholders. As part of the preparation and our commitment towards development, we held four (4) Town Hall Meetings at Ijebu, Remo, Yewa, and Egba Divisions to give our people a voice in the preparation of this Appropriation Bill.
In 2024, we will continue to accord priority attention to:
Completion of all ongoing projects across the ISEYA Development pillars;
Projects with revenue potentials;
Projects that can enhance employment generation;
Projects consistent with priorities articulated in the State Economic Development Plan & Strategy 2021 – 2025; and
Projects that align with the seven (7) thematic areas contained in the Medium-Term National Development Plan 2021-2025, namely:
Economic Growth and Development;
Infrastructure;
Public Administration (Governance, Security, and International Relations);
Human Capital Development;
Social Development;
Regional Development; and,
Plan Implementation, Communication, Financing, Monitoring and Evaluation
SUPPORTING PARAMETERS AND FISCAL ASSUMPTIONS FOR THE 2024 APPROPRIATION
Mr. Speaker and other Honourable Members of the Ogun State House of Assembly, the 2024–2026 Medium Term Fiscal Framework (MTFF) set out the parameters for the 2024 Appropriation Bill. These include both National and State Key Macro-Economic Indicators:
National Indicators: The three (3) tiers of government depend largely on the Federal Allocations which are the proceeds from the sale of crude oil and Value Added Tax (VAT). The Federal Government controls factors that determine revenue generation such as:
Oil price benchmark pegged at 77.96 US Dollars per barrel;
Daily oil production estimate of 1.78 million barrels with condensate;
Exchange rate of 750 Naira per US Dollar; and
The projected GDP growth rate of 3.76 percent and the 21.4 percent inflation rate.
State Indicators include:
The State estimated GDP of ₦7.3 trillion;
Projected GDP Growth Rate of 3.30 percent and
24.44 percent inflation.
STATE GOVERNMENT FUNDING ESTIMATES
We shall continue to improve on our Medium-Term Revenue Strategy (MTRS) to drive our Medium-Term Expenditure Framework (MTEF). The total State funding is estimated at N703,028,013,431.64 for the year 2024.
The revenue composition includes Ogun State Internal Revenue Service (OGIRS) with an estimate of N100.81 billion and other Ministries, Departments, and Agencies (MDAs) estimated at N139.73 billion totaling N240.54 billion. By this, we will achieve an IGR to GDP ratio of 4.1 percent. Statutory allocation from the Federal Government (i.e., FAAC and VAT) is expected to be N182.05 billion.
Capital receipts are estimated at N240.24 billion comprising Internal and External loans as well as Grants and Aids.
Rt. Hon. Speaker and Honourable Members of the House of Assembly, our internally generated revenue capacity remains commendable amongst other sub-national entities. We shall continue to explore the provisions of our statutes not only to enhance comprehensiveness and transparency but also to increase the State’s revenue in due course. In essence, we will continue to focus on improving our revenue base.
PROJECTED 2024 PROGRAMMES AND EXPENDITURE
The 2024 Budget proposals manifest the issues we will confront as well as the necessary steps to overcome them sustainably.
The expenditure policy of the Government in 2024 is designed to achieve the strategic objectives of the Ogun State Economic Development Plan and Strategy 2021 – 2025, including fiscal sustainability; human development; food security; improved business environment; energy sufficiency; improving transport infrastructure; and promoting industrialization focusing on Small and Medium Scale Enterprises.
Discussions are ongoing regarding the exploration of oil in Tongeji Island, Ipokia Local Government Area, and Olokola, in Ogun Water-Side Local Government Area. We are confident that very soon, we will be given frontier status and will soon join the League of Oil-producing States.
To further diversify and deepen our economy in this regard, we have established the Ministry of Mineral Resources. The new Ministry of Mineral Resources will oversee the general administration and operation of the natural resources that abound in our dear State. We have also established the Ministry of Energy to take advantage of the constitutional amendment that allows sub-national governments participation in the energy sector.
Education remains the bedrock of any nation. As such, we are committed to revitalizing the Education Sector. As a strategic move, we shall be having an Education Summit in the first quarter of the new year where numerous challenges facing the sector will be considered with a view to repositioning the quality of education in the Ogun State.
The 2024 Budget proposal is the fifth prepared by this Administration. It reflects the serious challenges currently facing our State, the key reforms necessary to address them, and imperatives to achieve higher, more inclusive, diversified, and sustainable growth.
2024 Appropriation Bill has therefore been titled “Budget of Sustained Growth and Development”. It is expected to sustain our administration’s quest for shared prosperity through the ISEYA mantra. Our objective is to create an enabling environment for businesses and industries to thrive through friendly policies and provision of infrastructure; collaboration, fiscal prudence, and quality service delivery; expanding the revenue base in the area of internally generated revenue, and to also ensure timely completion of on-going developmental projects through equitable and effective distribution and allocation of available resources.
Our principal objective in 2024 is to maintain and enlarge our economic base while being strategic toward harnessing economic opportunities in the outer years of our administration.
A total expenditure of N703.03 billion is proposed for the State Government in 2024. The proposed expenditure comprises N287.37 billion as recurrent and N415.66 billion as Capital with the highlights below:
Personnel Costs of N95.05B;
Consolidated Revenue Cost of N27.35B;
Public Debt Charge of N59.09B;
Overhead Cost of N105.88B;
Capital Expenditure of N415.66B
HIGHLIGHTS OF THE 2024 KEY CAPITAL PROJECTS
Key physical capital projects in the 2024 Budget include:
Light up Ogun Project to include procurement and installation of Transformers Statewide whilst parterning with the private sector to experience uninterruted power supply in 24 months
The Hosting of the 2024 Ogun National Sports Festival;
Construction, Rehabilitation, and maintenance of roads across the State including major ones such as :
Lagos – Ota- Abeokuta Expressway;
Ofada-Owode Road,
Lagos Garage – Ikangba – Ilese Road,
Ota-Lafenwa-Itele-Ayobo Road;
Ita Oshin – Ibara Orile – Ijoga Orile – Ibooro – Imasayi Road
OPIC Estate Internal Roads, Agbara,
250km Statewide construction in all three (3) senatorial districts
Road infrastructure to support the 2024 Ogun National Sports Festival,
Construction of infrastructure at our Economic Development Clusters
Extension of the Lagos Blue Line Metro Rail Project into Agbara, Extension of the Lagos Red Line Metro Rail Project to Ijoko and Ifo/ Kajola in line with the execution of our multi-modal transport plan under the Lagos-Ogun Joint Development Commission initiative;
Introduction of 2 and 3-wheeled electric vehicles in furtherance of our green initiatives and the need to reduce transport fares to cushion the effect of the petroleum subsidy removals
Expansion of CNG-fueled routes between major cities in the State
Development and rehabilitation of logistics parks along our major highways and in major locations;
Commence development of bus/water transportation interchange terminal at Iwopin.
In a bid to boost safety, we will be deploying additional security and communication systems for our security personnel.
Installation of intelligent and on-street transport management and enforcement systems in all three senatorial zones,
Construction of over 2,000 housing units in various locations across the State like Warewa, Sagamu, Iperu, Ibara, Ayetoro Road, OGTV Village, Ijebu-Ode, etc.
Water reticulation projects to connect more households to potable water supply having completed the Urban Water Supply Project;
Training the youth on Digital Solutions to enhance youth involvement in Agriculture.
Refurbishment and renovation of technical colleges and vocational centers.
Construction and Rehabilitation of Blocks of Classrooms, Technical Workshop/Science Laboratory at the Primary and Secondary Schools with the provision of furniture and equipment across the Four (4) Divisions in the State;
Agricultural Land Development, Maintenance of Livestock Feed, Quality Control, and production, Input support for various farmers, and grant support for land clearing state-wide.
Our key allocations in the 2024 budget in line with the functional classification are as follows:
SECTORS
2024
N’ M
%
1
EDUCATION
109,219.62
16%
2
HEALTH
81,185.66
12%
3
HOUSING & COMMUNITY DEVELOPMENT
28,886.43
4%
4
AGRICULTURE AND INDUSTRY
14,213.03
2%
5
INFRASTRUCTURE
209,122.60
30%
6
RECREATION, CULTURE
22,872.69
3%
7
SOCIAL PROTECTION
28,692.08
4%
8
GENERAL PUBLIC SERVICE – EXECUTIVE
ORGAN
31,125.49
4%
9
GENERAL PUBLIC SERVICE – FINANCIAL &
FISCAL AFFAIRS
34,954.27
5%
10
GENERAL PUBLIC SERVICE – GENERAL
PERSONNEL SERVICE
1,939.79
0.3%
11
PUBLIC ORDER & SAFETY
12,187.63
2%
12
ECONOMIC AFFAIRS
3,083.22
0.4%
13
JUDICIARY
7,029.32
1%
14
LEGISLATURE
14,412.07
2%
15
STATEWIDE
104,114.11
15%
Total
703,028.01
100%
CONCLUSION
Our dear Mr. Speaker, distinguished Honorable Members of the Ogun State House of Assembly, having recounted our plan of action for the incoming year 2024, I do not doubt that the year ahead will witness “sustained growth and development” by the special grace of God.
Our special gratitude goes to our revered Royal Fathers, Elder Statesmen, Religious Leaders, Market Women and Men, our Youths, Students, Unions and all other associations, the security Agencies, and indeed our Public Servants.
To ensure speedy passage of the 2024 Appropriation Bill, I have directed all Commissioners, Accounting Officers, and Heads of Agencies to be personally available for the budget defense.
We are mindful of the fact that these are indeed hard times. That notwithstanding, let me assure our people that we will put our words into action in our development agenda for the State. We will leave no one in doubt about our genuine intentions to work for the development of our dear State. I strongly believe that by God’s Will, with determination and collective effort, we shall succeed in the desire to sustain the growth of our dear State.
I, therefore, present the 2024 Appropriation Bill of Ogun State for your consideration and the benefit of the good people of our dear State.
I thank you for listening and God bless.
Igbega Ipinle Ogun, Ajose Gbogbo Wa Ni!
Prince Dapo Abiodun, CON
Governor of Ogun State, Nigeria.
Thursday, 30th November, 2023.
