Today marks my first trip, as the Governor of our dear State, to this hallowed chamber to present for your kind consideration proposals, which contain the seeds of our dream for a greater and more prosperous Akwa Ibom State. I have come as a co-labourer with you in the task of deepening, remaking and reconstructing the Akwa Ibom project.

Coming here fills me with joy and deep delight. The Akwa Ibom State House of Assembly has proven to be one of the most stable legislatures in our country, where the spirit of collegiality reigns supreme. You have shown over time that you place the common good above your private or primordial interests. You have been a pride to our State and I wish other Houses of Assembly would come here to learn in practical terms what happens when statesmen respond to the famous lines in our National Anthem, “Arise O Compatriots Nigeria’s call obey.” You are the custodians of the Akwa Ibom promise. Together, we can move our State to greater heights. The National Anthem says “Arise”; we say “Dakkada.” Both mean the same thing and we hope to show Nigerians how to arise – how to ‘dakkada’.

I congratulate you on your election and the inauguration of the Sixth House of Assembly. To the Right Honorable Speaker and all the Principal Officers of the Hallowed Chamber, again, I salute you. To whom much is given much is expected. This State expects you to continue to chart the course for sustainable development and transformation across sectors. The Executive and the Legislators were elected for this same purpose and this, my dear brothers and sisters, is our shared destiny and our motivational impulses. We are the two wings upon which our State will soar to new heights of glory and achievements. This is the debt we owe the good people of Akwa Ibom State who most graciously, had voted us into our different offices, and expect us, to roll our sleeves and work tirelessly for them
Mr. Speaker, before you, I crave your kind indulgence to share with this hallowed chamber, the Vision, Policies, Programmes and Projects of my administration and to present for your kind consideration and approval, the Estimates of Revenue and Expenditure of Akwa Ibom State Government for the 2016 Fiscal Year in accordance with the provision of section 121(1) of the 1999 Nigeria Constitution. In this historic moment today we want to lay the economic and socio-cultural foundation which will see Akwa Ibom State and its people move into another era of growth and development predicated on unity, peace and shared prosperity.

We present the 2016 Budget Proposals, with great attention to the cardinal objectives of my administration, which include the Five-Point Agenda of job creation, poverty alleviation, wealth creation, economic and political inclusion, and infrastructural consolidation and expansion to further transform the state into the next level of development.


Please, permit me to review the performance of our 2015 Budget before dwelling on the 2016 proposals.

Mr. Speaker, a total of N484.000 billion was approved for 2015 fiscal year, made up as follows:
Recurrent Expenditure - N 96.737 billion
Capital Expenditure - N275.000 billion
Consolidated Revenue Fund Charges - N112.263 billion
Total - N484.000billion

As at September, 2015, the actual recurrent Revenue collected was N150.871 billion. This represents % of the budgeted amount. A breakdown of Recurrent Revenue shows that N12.718 billion was realized from internal sources: N21.805 billion from statutory allocation; N6.885 billion from Value Added Tax (VAT) and N109.463 billion from derivation.

In re-appraising expenditure, a total of N72.487 billion was spent on the recurrent services which include: Personnel Costs N26.711 billion; Overhead Costs N5.795 billion, and Consolidated Revenue Fund Charges N39.981 billion. A total of N82.808 billion was spent on capital programmes within the period.

Operating within the framework of the approved budget and the limits of available resources, we have so far recorded substantial achievements in the area of capital projects and programmes. These include among others, construction of a second runway at the Akwa Ibom International Airport; rehabilitation of Peacock Paints in Etinan; ongoing construction of over 137km of Roads, six Bridges and infrastructural upgrades across the State; improvement of electricity and power supply; rehabilitation of water supply in Uyo Urban Area; inauguration of Technical Committees on Foreign Direct Investment, Ibom Deep Seaport Project and Agriculture and Food Sufficiency; conduction of ground breaking ceremonies of Automobile Assembly Plant, at Itu, Low Energy Display Plant, Fertilizer Blending Plant and AIT Station; training of 1000 youths in Oracle Data Base certification, Photography/Film, Agriculture in Israel and other skills acquisition programmes; payment of 10 years arrears of pensions and gratuities to Local Government Employees; special intervention at St. Luke’s Hospital, Anua, Uyo, intervention work on the gulley erosion on Calabar-Itu Road; Dominic Utuk Street, Abak Independence Hall area and Anua etc., launching of Monumental “Dakkada” movement, ensuring that salaries and wages of Akwa Ibom State Workers are paid promptly.

Our Capital Budget Expenditure is described in details in the Budget Implementation Report, which has been prepared to facilitate your consideration of the Draft 2016 budget.
It is worthy of mention that it was a huge success for the 2015 budget to be passed into law last year before the 2015 fiscal year began. I must also confess that this administration did its best to implement the budget as passed by this esteemed Assembly.


Mr. Speaker and Honorable Members, the 2016 Budget is very important for this administration as it is the foundation on which we hope to build and implement policies, programmes and projects for the well being of our people.

Our aim is to sustain and surpass the performance of the immediate past administration and to rapidly industrialize our State and create opportunities for growth and advancement of our people.

Mr. Speaker and Honourable Members, we have christened the 2016 budget as the Budget of Sustainable Development. The 2016 Budget of sustainable Development has been so named as it is our desire to provide development that is sustainable in Health, Education, Electricity, Water Supply, Agriculture, Information Technology, Capacity Building, other Infrastructure, Housing, Commerce and Industry, General Administration, Security, Industrialization and other facets of governance.

Already, our State has become the toast of both local and foreign investors. Akwa Ibom State has become the destination of choice for most national conferences. Together with your support, we have achieved much, and would do even more in the next four years and beyond.

Mr. Speaker, the 2016 Budget has been prepared based on IPSAS: International Public Sector Accounting Standards. This is a new Accounting concept practiced globally. The Federal Government has adopted it, and has mandated the States and Local Governments to do so. This concept has broken government services/functions into five main sectors viz; General Administration, Economic, Law and Justice, Regional and Social. All Ministries, Department and Agencies of government have been grouped into this sector according to the function they perform. This concept ensures uniformity and comparability between/among Budgets of different States, Local Governments, Federal Government and other Nations, as well as providing for transparency and accountability in public financial management.

Mr. Speaker and Honourable Members, permit me to briefly explain this concept and its workability. The Federal Government of Nigeria in 2013 rolled out an order that the Federal, States and Local Governments should prepare their 2014 Budgets and subsequent budgets in line with IPSAS. However, I am pleased to inform you that Akwa Ibom State is the first State in the Federation that is IPSAS-compliant in her financial management with effect from 2014.

IPSAS: International Public Sector Accounting Standards is a new National Chart of Account which has been structured into six segments with 52 digits. These include:
1. Administrative Segment - 12 digits
2. Economic Segment - 8 digits
3. Functional Segment - 5 digits
4. Programme Segment - 14digits
5. Fund Segment - 5 digits
6. Geographic/Location Segment - 8 digits
= 52 digits

1. Administrative Segment assigns functions to MDAs and IPSAS demands detailed budgetary explanations of expenditure on the functions.
2. Economic Segment identifies the account financing and reporting transactions. This helps to classify or group transactions into Revenue, Expenditure, Assets, Liability, etc and provides a platform for summarizing all transactions.
3. Functional Segment categorizes expenditure according to the purpose and objective for which they are intended. The Functional Segment comprises 10 main functions of government. These are:
· General Public Services
· Defence
· Public Order and Safety
· Economic Affairs
· Environmental Protection
· Housing and Community Amenities
· Health
· Recreation Culture and Religion
· Education
· Social Protection
4. Programme Segment, this segment marries the transaction with the purpose or objective for which it was intended. It identifies a specific project, its objectives as well as the activities involved in the project
5. Geographic or Location Segment (Geo Code), this is the location or physical existence of transaction/project so that an analysis of government budget and expenditure on the Senatorial Districts, Local Government Councils and Council Wards in the State can be done with ease.

It is a mechanism which provides oversight functions for monitoring and evaluation of government transactions across the State.

The IPSAS Chart of Account hereby helps in achieving a purpose-driven budget with a platform for monitoring, evaluation and performance analysis. It also gives stakeholders and investors the desired confidence in government and governance.

To make this budget speech simpler, the Documentation Report and Chart of Account of the State House of Assembly are attached in this speech as annexure I and 2 as examples of the IPSAS model of budget preparation.

Thank you for lending me your attention on this important explanation. Actualized projects/Programmes at a glance.


The policy framework of 2016 Budget is predicated on the following underlining principles:
1. The consolidation of the transformation so far achieved and setting new measures for further action that will surpass that superior performance as outlined in our Medium Term Plan Document, the AK – VISION 2020. This shall be judiciously and strictly implemented, and sustained.
2. The actualization of the economic power base of the state through industrialization and sustainable public-private sector initiative that will open up opportunities for growth and improved living standard.
3. The Creation and maintenance of a conducive and enabling environment where the tenets of democratic governance shall thrive and dividends of democracy dispensed for the betterment of all.
4. Ensuring the Security of lives and property of the people at all times, while adhering to the principle of the rule of law, thereby ensuring equity, justice and fair play.
5. The promotion of unity and oneness across the state, as well as ensuring due respect for traditional institutions and elders of our society which is a sinequanon for the achievement of a peaceful and prosperous estate.
6. The Continuous development, mobilization and promotion of youth and women empowerment programmes via planned and well-articulated welfare packages and capacity building programmes.
7. Giving all Akwa Ibom persons (both within Nigeria and the Diaspora) a proud sense of belonging; build on good governance, economic advancement and due respect for the fundamental Human Rights of all.
8. Pursuance of the task of rural development and integration with all vigor, bring all the benefits and dividends of our democratic governance to every nook and cranny in the state, and provide basic amenities of life to all.
9. Ensuring Accountability and Transparency in government by fighting and tackling corruption in all facets of our administration.
10. Promotion of trade, commerce, and tourism between Akwa Ibom State, our country and the rest of the world.
11. Fostering the development and maintenance of good working relationship with both the legislative and judiciary arms of government in the state as well as ensuring an effective local government administration for grassroots development, mobilization and empowerment.
12. The attraction of all possibly required federal presence to Akwa Ibom State, by developing and sustaining a harmonious and very cordial relationship with the government at the centre.


We shall adopt the following measures and strategies to achieve the above objectives:
i. Build a strong fiscal regime through the expansion of our revenue base and the elimination of wastages and leakages in our expenditure profile;
ii. Build on the current foundation so far laid and consolidate on the gains of a world class infrastructural development by employing effective public private partnership synergy;
iii. Increase the viability of Akwa Ibom Maritime, the air space airport facilities and expansion of our road infrastructure;
iv. Re-invigorate Agriculture and Agro-allied industries by making the sector attractive and responsive to national requirements. To make government subsidies reach end-users and generate output to ensure a sustainable food supply for consumption as well as provide raw materials;
v. Sustain women and youth empowerment through capacity building and elimination of gender discrimination practices against women and enforcing the Child’s Right Law;
vi. Develop the tourism potentials in the state in order to boost revenue base and enhance employment opportunities;
vii. Build an efficient security network around the state that is proactive to foil attack and make the state more peaceful thereby encouraging investment.
viii. Make the Public Service more efficient and effective to meet the challenges of good governance.


The 2016 Budget is predicated on oil benchmark of $30 per barrel at a production rate of 2.0 million barrels per day. The price benchmark envisioned here is based on:
· The current decline in global price of crude oil; and
· The production level which is below OPEC quota could serve a dual purpose – to accommodate disruptions in local production and further inherent decline in global price of crude oil.


Government has proposed a total budgetary outlay of N426.000 billion for the 2016 financial year as against N484.000 billion of 2015.
This is made up of:
Recurrent Expenditure - N92.964 billion
Capital Expenditure - N245.000 billion
Consolidated Revenue Fund Charges - N 88.036billion
Total - N426.000 billion

The total projected Recurrent Revenue for 2016 is estimated at N284.665 billion as against N408.000 billion for 2015. The breakdown is as follows:
Internally Generated Revenue (IGR) - N 35.273 billion
Statutory Allocation - N35.000 billion
Derivation Fund - N200.000 billion
Retained Revenue from Parastatals - N 2.392 billion
Value Added Tax (VAT) - N12.000 billion
SURE – P -
Total - N284.665billion

For the 2016 fiscal year, Recurrent Expenditure is proposed at N181.000 billion, made up of N52.932 billion for personnel costs, N40.031 billion for overhead costs and N88.037 billion for consolidated revenue fund charges including pensions, gratuities and public debts.

The total Capital Receipts and Expenditure for the year 2016 is estimated at N245.000 billion as against N275.000 billion for 2015. A total projected capital receipts shows that N103.665 billion will be transferred from the consolidated revenue fund while the balance of N141.334 billion is to be realized as follows:
Opening Balance from 2015 account - N 9.627 billion
Internal/External Loans - N 57.000 billion
Grants - N3.500 billion
Ecological Funds - N2.000 billion
Re-imbursement from Federal
Government on Road - N45.000 billion
Dividends from Government Investment - N24.207 billion


The sectoral allocation of the total estimated Capital Expenditure outlay of N245.000 billion for the year 2016 is presented as follows:
1.      Administration   66.862               27.3
2.      Economic             145.555              59.4
3.      Law and Justice   4.276                 1.8
4.      Regional                 2.976                 1.2
5.       Social                     25.331                10.3

Total                      245.000            100.0
Analysis of sectoral allocation above shows that priority is given to projects and programmes under the Economic sector.

For an efficient and effective Public/Civil Service, Government will keep training and retraining its workforce, and undertake specialized recruitment to fill essential vacancies and digitization of most government offices to boost the administrative sector. To this end, Government will intensify efforts in internal generation of revenue and tax administration. Administration has been allotted N66.862 billion in the 2016 budget.

This vital and crucial sector will generate revenue to government through effective planning and managing same in order to achieve sustainable socio-economic growth and development vis-à-vis capital projects.
The sum of N145.555billion has been estimated to boost this sector.

Government will continue to maintain peace, law and order, and justice with utmost sense of responsibility. Every applicable law will be used to dispense justice to (and enforce the constitutional right of) both Government and the governed. Public enlightenment on the different law issues as they affect the citizenry will be embarked upon. A total of N4.276 billion has been budgeted for law and justice.

Government is determined to turn the fortunes of rural dwellers around by focusing on rapid transformation to give them a new lease of life. Rural electrification; rehabilitation/maintenance of rural farm/feed roads; tarring of slippery hills; provision of mini water schemes, renovating community schools and many community empowerment and poverty alleviation programmes have been on course and this administration will do its best to ensure that more of such services are executed and sustained. This sector will gulp the sum of N2.976billion for the actualization of these projects.

The social fabric of our society needs much attention in terms of education, information, sports, health care, women, youth and traditional institutions. Also our environment needs aesthetic touches for beautification. My administration will do all it can to give the social life of our state a meaningful and rewarding status. To this end, the sum of N25.331 billion has been estimated for socials.

The belief which drives our vision is anchored on the fact that Akwa Ibom State can and must be a better place for all Akwa Ibom people born and unborn. This article of faith inspired our commitment to the AkwaIbom project and desire to leave it better than we have met it in providing it with an effective and efficient administration anchored on people-oriented goals.

Mr. Speaker and Honorable Members, my administration preaches consolidation and continuity. Consequently, we intend to make the welfare of the Akwa Ibom person the centerpiece of all our developmental efforts and actions as a government. We will pursue sustainability in all facets of our endeavour.

Mr. Speaker and Honourable Members, paramount in the heart of this administration is industrialization of the state. This particular ambition accounts for the reasons within this short period of our administration; we have committed ourselves to completing all viable abandoned projects and reviving ailing viable industries and determine as well. not to leave any uncompleted project. Our objectives and effort may sound radical, but that is so, because we approach issues outside of the box of conventional wisdom. Industrialization will create employment opportunities for our teeming youths and lift people from dependency to self-sustenance.

Education remains a core social sector of our economy. It is a pivot on which every human capital development revolves. This administration places a high premium on education and skills development. In order to consolidate on our widely – acclaimed gains in this sector, we will continue to provide the basic facilities like libraries, science laboratories, instructional materials, workshop equipment etc. for distribution to our school children in public school system. Renovation and construction of more classroom and academic blocks, securing full accreditation of academic programmes, ensuring effective and efficient capacity building, recruitment of teachers, payment of bursary and scholarship to our students and providing boarding facilities to ensure a controlled and disciplined learning environment will be a continuous affair. To realize these objectives in education, the 2016 budget earmarks the sum of N9.888 billion.

In positioning the state to compete favourably with her counterparts in Science and Technology anywhere in the world, the state government will continue to bolster her efforts in making our economy science-and Technology-driven through the following:
· Completion of Science Park
· Establishment of Research and Development Laboratory
· Technology Workshop
· Provision of Human resources in science, engineering and technology
· Promotion of ICT programmes and activities
· Establishment of self city project which aims at assisting
crime detection in the state;
· e-governance which aims at moving government from
manual to electronic level, and
· E-Library project maintenance and updating of
faculties/equipment for continuous functioning of the
· To meet these needs, 2016 Budget proposed the sum of N0.861 billion.

The major activities carried out in the agriculture sub-sector within the fiscal year with remarkable achievements include the training and empowerment of 2,000 youths for engagement in diverse agricultural enterprises through the Integrated Farmers Scheme (IFS); training and empowerment of 1,500 women for gainful engagement in agriculture through the Women Agro-Entrepreneurship Programme (WAEP); training and empowerment of 60 Tractor Drivers and Mechanics with complete Tool Kits and loan disbursements to 28 Large – Scale Farmers’ groups and 292 Small Scale Farmers. Under the Community Plantation Development Scheme (CPDS), improved oil palm seedling and Cocoa Seedling had been distributed to farmers in the state. The modern Poultry Hatchery Complex with a 540,000 capacity per month had been completed in Mbiaya Uruan.
In view of all these achievements, the policy thrust of the present administration is to grow agriculture as a business and not as a developmental project, past time or a subsistent engagement.

Government therefore, intends to sustain the tempo and level of agricultural activities currently going on in the state by using the dynamics of technology in the sector. The Integrated Farmers Scheme (IFS), FADAMA III Programme, Rice Project, Women Agro-Entrepreneurship Programme (WAEP), Community Plantation Development Scheme (CPDS) and the Rural Community Farms Development Scheme among other programmes of the ministry to pursue vigorously sustainable development and food sufficiency in the state. To realize this aspiration, the sum of N8.071 billion is earmarked in 2016 Budget.

The State’s transformation in terms of physical development and infrastructure has been tremendous during the past eight years. We intend to improve on this, by consolidating, sustaining and completing on-going projects in this sector. Government land will be fully utilized to the benefits of the citizenry.

Housing will continue to receive the needed boost to make the masses feel the dividends of democracy by maintaining and rehabilitating urban renewal scheme in the state capital and other major towns. Government will continue to pay compensation on acquired lands, enlighten the public on issues concerning Certificate of Occupancy, embark on maintenance and rehabilitation of public infrastructure and ensure developmental control within Uyo Capital City. A total of N31.257 billion has been slated for these.

Government is poised to consolidate on the gains already made in this sector by opening up more rural communities through the provision of basic social and economic infrastructure – rural electrification, tarring of slippery roads, mini- water scheme, empowerment of rural community development etc. The sum of N3.258 billion has been estimated for these projects.

One major commitment of my administration has been that of safeguarding the environment for the healthy living of our people. Government has embarked on various programmes and activities in this area and will continue to gear efforts towards improving them especially in flood control, collection and evacuation of wastes in Uyo Metropolis, landscaping and mapping of Uyo and maintaining the aesthetic and festooning beauty. The sum of N4.120 billion has been allocated for this sector.

My administration has sustained support for, and promotion of vocational arts and skilled manpower in the state. The available raw materials identified in the different local government areas would be tapped to create wealth for the area and the state. We have also pursued the industrialization of the State via attraction of Foreign Direct Investment, FDI, and promotion of Public Private Partnership, PPP.

We are also developing the requisite human capital to drive the industrial and commercial activities, thus creating wealth and employment opportunities. Government has also developed a working plan to guide the State’s industrial efforts even as it has introduced a Micro Credit Scheme for small-scale industries and Small and Medium Enterprises, SMES. These will require N7.986 billion of the budget.

Tourism is one of the greatest revenue earners in the world today. Therefore, in order to boost tourism and for increased revenue generation in this sector, government has undertaken the following.
· Expansion work at Le Meridian Ibom 5-Star Hotel and Golf
· Completion of a multi-million Naira Ibom Tropicana
Entertainment Centre, complete with Cineplex, galleria, malls, dry and wet parks, hotels and convention centre. Work is currently in progress
· Sponsorship of the State Arts and Culture troupe to arts and
culture festivals in foreign countries.
· Sponsorship of a children’s culture troupe.
· Provision of enabling environment for private ownership of
over 50 standard hotels in Uyo, the State Capital. We intend
to spend N0.971billion on this for continuous achievements.

The health sector has experienced an unprecedented revolution since the advent of this administration. The Ibom Specialist Hospital has started operations, and we recently commissioned the state-of-the art residential quarters for the expatriates that will man the key aspects of the hospitals’ operations. We are committed to providing affordable health-care services to our people. Other achievements in this sector include the upgrading of three Hospitals in Eket, Oron and Ikot Ekpene with provisional accreditation from Medical and Dental Council of Nigeria (MDCN) to provide training for House Officers in the state, 48 House Officers had been employed and commenced training, immunization of our children and mothers, free Healthcare Programme and Malaria Elimination Programme (MEP) were pursued with success. HIV/AIDs reduction also recorded progress as government showed commitment in this respect.

In 2016, the policy thrust of government is to ensure that the people of Akwa Ibom state continue to enjoy the highest standard of healthcare within the framework of planed programmes through improving free Healthcare for pregnant women, children under the age of 5yrs and the elderly, 65 years and above, improving maternal, newborn and child health, scaling up HIV/AIDs, malaria and TB control programmes, commencement of activities at Ultra Modern Diagnostic Centre at Ikot Ekpene, and improvement in infrastructure and service delivery, etc. To meet these health needs for our people, the sum of N7.419 billion is estimated in 2016 Budget.

The importance and necessity of good roads and an efficient transportation system in the lives of the citizenry and the attraction of investors to the state cannot be over-emphasized. To this end, my administration has embarked on massive construction/rehabilitation of roads/bridges, improvement/maintenance of standard urban electricity supply, installation and reactivation of street lights along major roads/streets as well as fire prevention and protection.

The transport sector has ensured that there is free traffic flow in Uyo and biometrics data capture of owners and operators of vehicles and tricycles in the state operate successfully. To cater for these crucial needs, the sum of N 100.244 billion is estimated in 2016 Budget.

Information management and sensitization of the people on the policies and programmes of government is important. Government intends to build on the gains already made by continued provision of basic information and communication infrastructure to enable media professionals operate optimally.

Sporting activities will continue to receive a boost as the Olympic size stadium was commissioned and delivered to the people. Government will continue to promote the development/protection of women, children, and the elderly and other socially disadvantaged persons through relevant agencies.

We will not relent on our efforts in promoting peaceful understanding and cooperation between the government and the governed as well as various political interest groups.

Comments are closed.