A BUDGET SPEECH DELIVERED BY HIS EXCELLENCY, CHIEF WILLIE OBIANO, GOVERNOR OF ANAMBRA STATE TO THE HONOURABLE MEMBERS OF THE ANAMBRA STATE HOUSE OF ASSEMBLY ON THURSDAY, 03 DECEMBER 2015.

Protocol
His Excellency, the Deputy Governor,
The Honourable Speaker,
Honourable Deputy Speaker,
Principal Officers of the House and other Honourable Members of the Anambra State House of Assembly,
The Chief Judge of Anambra State,
The Secretary to the State Government,
The Chief of Staff,
The Head of Service,
Honourable Commissioners,
Special Advisers to the Governor,
The Clerk of the House,
Permanent Secretaries,
Senior Special Assistants to the Governor,
Special Assistants to the Governor,
Members of the Press,
Distinguished Ladies and Gentlemen,
Ndi Anambra ekenem unu!

1. I feel greatly honoured to stand before this great
Assembly today, to present to you my administration’s Draft
Estimate and Roadmap for the 2016 Fiscal Year. The
outgoing year 2015 remains one of Nigeria’s most difficult
years in recent memory, but I am proud to report here that
even in the midst of all the extremities, my administration
kept faith with Ndi Anambra. We have faithfully
implemented our 2015 budget, titled- ‘Budget for Wealth
Creation and Social Cohesion’.

2. Madam Speaker and Honourable Members, the 2015
Budget offered my Team and I, a chance to do the
fundamental spadework for the full implementation of my
Economic Blueprint and my Promise to Ndi Anambra.

3. Madam Speaker and Honourable Members, any useful
appraisal of my administration must of necessity start with
a timely reminder of my Vision and Mission Statements
which form the very core of my pact with our people. As you
may well recall, when I campaigned for the votes that made
me the governor of this great state, I clearly stated that my
Vision was to make Anambra State the 1st Choice
Investment Destination and a hub for industrialization and
commercial activities.

4. I also declared that my Mission was to make Anambra
State a socially stable, business-friendly environment that
would attract both indigenes and foreigners to seek wealth-
creating opportunities. These two statements have served
as a compass to my administration from inception. I am
delighted to report that we did not stray from this compass
in the out-going year.

REVIEW OF 2015 FISCAL YEAR
5. Madam Speaker, Honourable Members, no meaningful
assessment of the performance of my administration in the
last fiscal year can be done in isolation from the nation’s
macro-economic environment. In this instance, the political
environment is also of great importance as the year in
review is an electoral year. Frankly, the year 2015 presented
some of the most difficult challenges that Nigeria has
known in recent times.

6. Nonetheless, it also offered the nation a great chance to
work on true integration and rebirth with a most peaceful
transition from one civilian regime to another, as the party in
power peacefully handed over to the opposition. The build
up to the last general elections was marked by fear and
apprehension, rooted in our political history. Most Nigerians
waited with anxiety for the outcome of the political battle
between the party in power and the opposition.

Consequently, this had a telling effect on the market at first,
but happily, it dramatically recovered with the emergence of
Muhammadu Buhari as the winner of the presidential
elections.
7. As we all know, the unprecedented crash in the price of
crude oil in the international markets combined with the
relentless onslaught by the Boko Haram in the North East
and parts of the North Central to create a sense of anxiety in
our country. A direct consequence of the fall in oil prices is
a staggering loss of revenue from the Federation Account as
monthly FAAC took a 40% hit between March, 2014 and
October, 2015. The immediate result of this is a drastic dip
in the capacity of most states to meet their financial
obligations leading to non-payment of salaries and the
frantic search for bailouts. Thankfully, Anambra is not a
part of this category and will never be one of the states
begging for bailout funds under my watch.

8. However, we are not totally insulated from the prevailing
economic shock in the country. A drop in federal revenues
means that we have had to look inwards for growth and
sustainability. It means that we have had to rev up our
revenue drive from the N500m we inherited monthly to a
current level of N1.3bn. It also means that now more than
ever before, we have had to prioritize government spending
to ensure that we have maximum values for minimum
investment. It was this thinking that gave rise to the new
mantra of my administration known as “doing more with
less.”

9. An easily noticeable sign of the impact of the current
revenue loss is the fact that across the country, there is a
lull in the construction industry as states slow down on
capital projects. Happily again, our story is different in
Anambra. The three flyovers in the three strategic locations
in Awka are nearing completion while work continues at a
considerable pace on other roads and bridges, including the
47 kilometre road and bridge to the oil and gas fields in
Anambra East. Ndi b’anyi, I will have you know that this is
the longest road project embarked on by any administration
in Anambra!

10. Great parliamentarians, we all know that since the
inauguration of my administration, one of our proudest
achievements is the transformation of Anambra State from
the centre of crime and criminality to the status of the safest
state in Nigeria. Indeed, from the end of the Civil War, Upper
Iweka and all the areas stretching to 10km radius were
notorious for violent crime of all types. But in the year in
review, we gave kidnappers and violent criminals a bloody
nose; pulling down the warehouses where kidnappers kept
their human cargoes and running them out of town.

11. We also made a strong statement when we arrested
Alphonsus Ngwu, the largest dealer on illicit arms in Onitsha
and Okechukwu Nnaegbo, a kidnap kingpin who was already
inside an aircraft trying to escape to South Africa. To
further reinforce our security, we organized a Regional
Security Conference that attracted the governors of the
South Eastern states and Delta State. We shall not relent in
reaching out to our neighbours and building critical alliances
that will keep Anambra State beyond the reach of violent
criminals.

12. Great lawmakers, the emerging narrative of the New
Anambra is a story of hope as we shrugged of the
depression caused by the parlous state of the economy to
give hope to our people with a 15% increase in workers’
salaries. No other state in Nigeria seriously contemplated a
salary increase for workers; not even the wealthiest states
could do that. But we did not only increase salaries, we
have continued to pay salaries regularly and by the grace of
God, we shall continue to do that. We also evolved a string
of worker-friendly policies that changed the face of
governance in Anambra State. We are on record for clearing
the N1.9bn arears of salaries owed the state Water
Corporation Staff as well as the approximately N1bn
pension to local government retirees. Indeed, my
administration has humanized governance and assumed
the remarkable status of “the human face of governance.”
This became more evident nationally when 25 prisoners
serving different jail terms in Anambra State were granted
amnesty and handed a cheque of N1m each to enable them
re-possess their lives.

13. Our outstanding achievements in the Educational Sector
in the previous year were sustained in the year in review. We
maintained our enviable position in NECO examinations by
recording approximately 80% in 5 Credits including English
Language and Mathematics in year 2015 while Anambra
children from a few public schools represented Nigeria at
the World Schools Debate Championship in Singapore. We
are also current national champions in the national Pre-
basic Debate Competition held in Abeokuta, Ogun State to
mark Nigeria’s 55th Independence Anniversary. Similarly,
our own Rose Nkemdilim Obi also won this year’s Teacher
of the Year Award to underscore the silent revolution that is
going on in the educational sector. But more specifically, we
have disbursed the sum of N733 million to mission schools,
renovated 862 units of 10-classroom blocks and awarded
scholarships estimated at N30 million to over 200 students.
We would have done more but for the bleak state of the
economy.

14. As most of you are now aware, contrary to the bogus
figures that have been bandied around in the last 19
months, my administration inherited the sum of N36bn in
liquid assets from the previous administration and a
portfolio of legacy projects of N107bn. However, in line with
our Promise of Continuity, we have so far paid the sum of
N35.1bn on all projects we inherited from the last
administration and N11.7bn on projects so far initiated by
my administration.

15. The drive for investment received a huge boost in the
out-going year, beginning with the arrival of a 28-man Trade
Delegation from Thailand in January. Even with the bleak
domestic economy, we were able to sustain the push for
more investments, leading to the eventual visit of the Irish
Trade Mission and finally the visit of the UK Trade Mission
one week ago. At the same time, our beloved state has
maintained its status as a haven for investors in Sub-
Saharan Africa, attracting massive investments to the tune
of $2.5bn in 19 months. Anambra ranks only next to Lagos
and Ogun States in investment inflow and with our current
rating as Nigeria’s safest state; we have enough
fundamentals to do better than we have done so far. As the
true home of entrepreneurship in Sub-Saharan Africa,
leveraging our rich database of Captains of Industry, we
shall continue to aggressively facilitate more investments
until our entire state is saturated with flourishing
businesses.

16. Ndi Anambra, I must mention the fact that much of
what we have been able to achieve in our drive for
investments is as a result of the pivotal role of the Anambra
State Investment Promotion and Protection Agency
(ANSIPPA). ANSIPPA continues to create a new paradigm in
investor relations in the public sector, wiping out the
intimidating bureaucracy that once made investing in
Nigeria a nightmare and cutting down the cost of doing
business in Anambra State. ANSIPPA has made Anambra
the most sought-after investment destination in barely 18
months.

THE 2016 BUDGET (Overarching Considerations)
17. Madame Speaker and Honourable members, as I
mentioned earlier, the current economic recession in the
country presents some challenges which have direct
implications for the 2016 budget. Therefore, in line with the
dynamics of these trying times, we have made a careful
assessment of all activities as well as difficult trade-offs to
ensure that only the most critical activities are included in
the budget. We must also ensure that we derive maximum
socio-economic value from every naira expended by my
administration. It was this consideration that informed the
choice of the theme of the 2016 budget proposal as “the
Budget for Efficiency, Optimization, Productivity and Job
Creation.”

Great Parliamentarians, experience has shown that every
realistic budget proposal must anticipate some challenges
that might stand in the way of its full realization.
Consequently, the challenges that our Budget of Efficiency,
Optimization, Productivity and Job Creation must overcome
include:

• Limited Resources: Declining oil revenues which have
significantly impacted FAAC receipts accruing to States and
Local Governments.

• Large Portfolio of Legacy Projects & 4Cs: We inherited a
large portfolio of projects from my predecessor but in line
with our Continuity Promise, my administration is
committed to continuing, completing and commissioning all
inherited projects and commencing new ones.

• Strategic priorities: We have a bold ambition and a highly
engaged citizenry looking for us to reaffirm their high
expectations of developmental projects ahead of the next
electoral cycle. It does not matter that the federal
government has repeatedly admitted that Nigeria is going
through some financial difficulties that might stand in the
way of fulfilling some electoral promises.

Policy Thrust of Fiscal Year 2016 (FY2016) Budget
19. Madame Speaker and Honourable Members, our policy
thrust for the fiscal year 2016 budget is to implement
economic policies and sector growth strategies that will
achieve fiscal stability and discipline, grow and maximize
internally generated revenues, improve productivity in public
service productivity with a view to engender inclusive
economic growth, sustainable development and job creation
for Ndi Anambra.

20. The guiding principles and strategies for attaining these
objectives are stated below:

a. For the 1st time in the history of Anambra State, we have
to set up a mechanism to ensure that our revenue estimates
are scientifically computed with accurate, realistic and
defendable assumptions.

b. Aggressively drive the elimination of revenue leakages via
automation, heightened & targeted enforcement and
instituting strong governance controls across all revenue
generating ministries, departments and agencies.

c. Strategic budgetary priority on human and infrastructural
development with emphasis on select economic enablers,
namely: i) Security, ii) Road construction and maintenance,
iii) Education, iv) Healthcare, v) Water, Sanitation & Hygiene,
vi) Environment and vii) Youth Empowerment.

d. Sustain government counterpart contributions with
Development Partners (such as UN Agencies, World Bank,
EU, etc.) to attract greater funding support to our key social
sectors.

e. Refocusing and reorientation of our Economic Pillars
(Agriculture, Oil & Gas, Industrialization and Trade &
Commerce) to focus on revenue maximization and
leveraging public-private-partnerships to implement
medium-term sector strategies.

f. Inclusion of a limited number of new, but strategically
necessary, capital expenditure items not included in the
unimplemented portion of the current fiscal year’s budget.

g. Strong emphasis on MDA(s) budgetary allocation
efficiency by ensuring value for money, through
prioritization as highlighted by the Zero-Based Budgeting
System.

h. Creation of a Fiscal Responsibility Committee to act as a
clearing house for all budgetary requests to ensure policy
coordination, effective sectoral spending and efficient
settlement systems.

i. Sustained Implementation of the Treasury Single Account
initiative to improve accountability and transparency. All
MDAs to operate only one account through which overheads
and other minor non-capital expenditure funds will be
warehoused. All other funds to be warehoused centrally in
the State’s treasury to enhance revenue collection, reporting
and remittances.

FY2016 Supporting Assumptions
21. The 2016 Budget is anchored on the following
assumptions:

a. Given the sharp drop in global oil prices and price
forecasts by reputable financial institutions, we have
assumed a crude oil price benchmark of US$40.20/bbl and
average production of 2m barrels per day;

b. Due to a drop in consumption levels across the country
as acknowledged by the proposed initiatives of the FIRS, we
project the impact of the above to have a zero sum effect
on VAT revenues, hence, we assumed VAT revenues
equivalent to our 2015E monthly average of N743m;

c. The current economic situation will pose major
challenges towards the growth of our internally generated
revenues. However, we strongly believe that the aggressive
elimination of leakages will bring about N2.2bn in IGRs
representing an 80% rise on current levels. However, it is
important to state clearly that my administration will not
increase taxes, rates and levies;

d. We have projected N12bn in counterpart and
concessionary funding from our development partners;
e. Although the Federal Government acknowledges its
obligations to Anambra State to the tune of N25bn for funds
expended on Federal roads and infrastructure, we expect to
receive at least N14.5bn in refunds from the Federal
Government;

f. We have also budgeted N10bn in domestic concessionary
debt financing to fund capital expenditure;

g. Personnel costs are projected to rise by 13% to N16.6bn
due to scheduled promotions. It must be noted however that
whereas my colleagues are either owing a huge backlog of
salaries or currently undergoing extensive retrenchment
exercise, my administration is rewarding hard work!

h. Consolidated revenue fund charges are projected to rise
by 50% to approximately N12.4bn. This increase is
occasioned by the addition of monthly contributory pension
remittances and the creation of a sinking fund to provide for
pension of pensioners (pre-contributory pension scheme
era), group life insurance and increased public debt charges.

i. Our proposed capital expenditure estimate is focused on
priority social sectors while we expect to leverage public-
private-partnerships to develop the State’s key economic
pillars.

FY2016 Budget Envelope
22. In line with the above policy thrusts and supporting
assumptions, we therefore propose a budget of N101.4bn.
This represents a significant decrease of 38% over the
current fiscal year’s budget estimate. This decrease further
stresses the need for prioritization and ‘doing more with
less’ in the 2016 fiscal year! In the coming fiscal year,
Capital Expenditure is projected at N52.8bn while Recurrent
Expenditure will be N48.6bn. These figures imply a Capital
to Recurrent Expenditure ratio of 52:48 as against 67:33 in
the current year.

23. Madame Speaker and Honourable Members, during the
2016 fisca year, this administration will be totally focused
and committed to aggressive development of our Economic
Pillars and Enablers. We shall continue to partner with the
private sector to deliver on our economic objectives in the
areas of Agriculture, Industry, Trade and Commerce and Oil
& Gas. While our economic enablers will require a great deal
of public sector financing and support; we shall not relent in
this area. Some key budgetary allocations are as follows:
• Works & Infrastructure – N30.0 billion;
• Education – N3.0 billion;
• Health – N2.45 billion;
• Public Utilities – N1.8 billion; and
• Agriculture (Rural Development) – N1.02 billion.
Priority Sectors
Works & Infrastructure

24. Expenditure on our Road infrastructure continues to
account for a significant proportion (57%) of the planned
Capital Expenditure in the upcoming fiscal year 2016. This
is due to a number of factors, namely: 1) the resolve to
complete all on-going road contracts awarded by the last
Administration, 2) to ensure that we keep to our promise of
providing road infrastructure to further unlock the economic
potentials of the State and 3) to fulfil our investment
obligations with Public-Private-Partnerships to provide
access roads and other enabling infrastructure across our
economic pillars.

Education
25. During the course of the 2016 fiscal year, our
development strategy shall:

a. Continue to focus on improvement of Students Learning
Achievements in English, Mathematics, Igbo and the core
sciences.

b. Provide access to quality education to Anambra children
and deployment of teachers to rural/hard-to-reach areas.

c. Reposition Technical and Vocational Education (TVET)
through the refurbishment of infrastructure and
accreditation of courses in three model Government
Technical Colleges in the three senatorial zones.

d. Setup a functional and efficient Education management
Information System (EMIS) structure and retool Science
laboratories in Public Secondary Schools to a state-of-the-ar
t level.

e. Adequately equip and furnish Special Education Centres
in the State through the provision of equipment and
classrooms.

f. Intensify the application of transparency and zero-
tolerance of exam mal-practices in the conduct of exams in
the State.

g. Continue Capacity building and ICT training programmes
for teachers and students.

h. Grants and scholarships for excellent policy to indigent
students shall remain a priority.

i. Improve active participation in sports and academic
competitions as it engenders the spirit of excellence.

j. Create a quality assurance bureau to regulate activities
within the sector and ensure adherence to global best
practices

k. Finalize and implement work-in-progress policies aimed
at improving girl-child education across rural areas in the
State

Health
26. In the Health sector, my administration plans to:
a. Implement the Universal Health Insurance Scheme to
ensure affordable and easy access to healthcare services to
all and sundry. This we hope to achieve by:

o Passing Universal Insurance Law.

o Implementation of the National Health Insurance
Guidelines

o Renovation and Equipping of at least two general hospitals
in each Senatorial Zone to meet up with the requisite quality
and hygiene standards for accreditation by the National
Insurance Scheme.

b. Strengthen Primary Healthcare delivery by introducing
performance-based financing where healthcare providers
are rewarded with financial incentives based on period
assessment.

c. Scale up the Mobile Ambulance and Emergency Services
Scheme already started during the current year.

d. Upgrade three General Hospitals, one in each senatorial
zone to Specialist Hospitals to aid training of doctors and
other health workers.

e. Commence construction of a new school of nursing

f. Establishment of Anambra State drug distribution
channels to regulate the drugs market and prevent sale and
distribution of fake and counterfeit drugs.

g. Introduction of a Traditional Medicine Board to regulate
the practice of Traditional Medicine in the state.

27: PUBLIC UTILITIES
h. Water:

1)Rehabilitate existing water treatment plants in cities

2)Rehabilitate existing water boreholes in rural locations

3)Develop effective reticulation networks to distribute
potable water produced from rehabilitated water treatment
plants and boreholes

B)Power Generation & Distribution

1)Extend select distribution network points to improve
electricity distribution in the state

2)Complete the installation of transformers across the state

3)Expand the establishment of power generation solutions in
the state to increase power supply to critical sectors of the
economy.

C)Captive Power (government parastatals and street lights)
Embedded generation through Enugu Disco
Alternative power generation solution (renewables)
Power Audit

D)Conduct a power audit to assess the state of power

distribution infrastructure in the state, determine the current
energy demand, as well as project future energy demand.
Youth Empowerment & Job Creation

28. In the area of Youth Empowerment and Job Creation, we
shall:

a. Challenge our youths with training for self-employment
that will aid individual fulfilment and communal growth.
Currently, our job creation capacity has recorded over
100,000 placements in Civil Works, Agro ventures, Personal
Care services and Computer technology sectors.

b. Commence the use of the Federal Youth Centre facility at
Mgbakwu and increase our intake at the College of
Agriculture also at Mgbakwu

c. Utilise our Vocation centres and Technical institutes for
training and engagements in youth entrepreneurial
programs.

29. In furtherance of our goals in this direction, we have
taken appropriate steps to change the name of the Ministry
from Ministry of Youth and Sports Development to Ministry
of Youth Entrepreneurship and Sports Development and
have set complementary targets. We enjoin Ndi Anambra to
step forward to partner with Government in varied aspects
of this new direction both as resource persons and as
mentors.

30. Today, Anambra is home to 46% of the Micro, Small &
Medium Enterprises (MSME) activities in Nigeria. It is also
pertinent to note that this sector is the critical engine room
for job creation and entrepreneurial activity in any
developing economy. To date, through the Anambra State
Small Business Agency, we have been able to empower
SMEs via well-structured funding and capacity building
programs to the tune of N1.0 billion. Over the next six
months, we plan to roll out a N1.0 billion micro lending
scheme to support small scale farmers, cottage industries
and other players in the informal sector.

Science & Technology
31. In line with the theme of doing more with less, this
administration intends to deploy ICT to curtail leakages and
enhance productivity. Specifically, ICT will be used to drive
IGR and other Government activities. To this end, the
Ministry of Science & Technology (through our newly
created ICT department) is working assiduously to roll out
our integrated ICT platform by the first quarter of the
coming year.

CONCLUSION
32. Madame Speaker and Honourable Members of this
esteemed Assembly, my beloved Ndi Anambra, the Budget
Proposal I lay before you today represents our continued
drive for real, inclusive and sustainable growth for the
wellbeing of our people.

33. It is a budget that gives priority to our concerns for
infrastructure, food security and human development. It is a
Budget that introduces a series of innovations aimed at
ensuring that our state successfully weathers the impending
economic storms. I am strongly of the opinion that this
2016 Budget before you is a push in the right direction
borne out of our well thought-out and articulated
development policies.

34. This budget captures the hopes and aspirations of every
citizen of our great state. It belongs to the farmer in
Ayamelum, the trader in Onitsha main market, the young
entrepreneur in Mgbakwu, the elderly and the less
privileged. Yes, we are faced with challenging economic
conditions, but history suggests that times of adversity
often give birth to boundless opportunities. My
administration has a responsibility to transform these
opportunities into real prosperity for all. I appeal for the
assistance and understanding of the members of this great
parliament to make this work… to grow our economy… to
transform our dear State and create jobs, jobs, jobs for our
teeming youth and the unemployed.

35. Lastly, I must reiterate my appreciation of the great
contributions and cooperation of this Legislature so far in
discharging our collective responsibility to build the State of
our dreams.

36. I eagerly look forward to an expeditious consideration
and passage of this Proposal, as we strive to continuously
transform the fortunes of our great Anambra State … Light
of the Nation!

God Bless Anambra State!
God Bless Nigeria!
Thank you.

Willie Obiano
Governor