Kaduna

Kaduna, May 16, 2023: The Kaduna State Government said it spent N43.8 billion of the N89.1 billion generated in the first quarter of 2023, according to the state’s First Quarter Budget Performance Report.

The report released in Kaduna on Tuesday, was produced by the Office of the Account General with support of the Planning and Budget Commission.

It showed that the N89.1 billion generated and the N43.8 billion expended represented 23.7 per cent and 11.7 per cent of the N376.5 billion total budget for the year.

The report further showed that the state received N41.1 billion as recurrent revenue during the first quarter of the year, representing 22.4 per cent of the N183.4 billion budgeted revenue.

It added that N23.1 billion was received as the State Government’s share of Statutory Revenue which included VAT, electronic money transfer levy, FOREX equalisation, and share of augmentation.

The report noted that the state collected N17.9 billion as Internally Generated Revenue (IGR) within the first three months of 2023, representing 20.1 per cent of N89.3 billion IGR target for the year.

It also showed that the state had Capital Receipts of N5.4 billion, representing 3.6 per cent of the N150.4 billion budgeted receipts.

This is broken down as N3.2 billion being the last drawdown of the World Bank-supported State Fiscal Transparency Accountability and Sustainability Programmes for Results (SFTAS) programme.

It also indicated that N2.2 billion was under the World Bank-supported Adolescent Girls Initiative for Learning and Empowerment (AGILE) Programme.

On expenditure, the total recurrent expenditure amounted to N26.8 billion, representing 19.8 per cent of the N135.5 billion performance.

The N26.8 billion recurrent expenditure was made up of N14.9 billion personnel cost and N11.8 billion overhead cost.

It explained that overhead cost was low because it was paid only once during the quarter under review due to the outgoing government priority on capital expenditure to complete on-going projects before May 29.

On capital expenditures, the report showed that N17.1 billion was spent in the first quarter, representing 7.1 per cent of the N240.9 billion budgeted for capital expenditure.

It showed that the economic sector, particularly Public Works and Infrastructure, road construction and finance sub-sectors received a significant part of capital spending in the first quarter.

This is based on the outgoing administration striving to complete various legacy projects under the Urban Renewal programme it started in 2019.

Reacting to the development, Mr Yusuf Goje, a public finance management analyst, urged residents of the state on the need to go beyond the reported figures to track how the money was spent.

This, according to him, will ensure that the budget releases were made available for the relevant ministries, departments, and agencies, to implement planned programmes that will translate into quality delivery of services.

The Kaduna State Government has spent N254.9 billion out of the N309.9 billion budgeted for 2022, representing 82.2 per cent budget performance, leaving a variance of N55 billion.

This is according to the 4th Quarter Budget Performance Report, 2022, produced by the Office of Accountant General with support of the State Planning and Budget Commission.

The Report, published on the Kaduna State website and obtained by the News Agency of Nigeria (NAN) in Kaduna on Tuesday, shows that the initial budget was N278.6 billion but revised to N309.9 billion.

On capital expenditure, the report shows that the government spent N165.6 billion as against N196.8 billion budgeted for the year, representing 84.1 per cent performance leaving a shortfall of N31.3 billion.

For recurrent expenditure, the government spent N89.3 billion as against N113 billion, representing 79 per cent performance with a shortfall of N23.8 billion.

On revenue performance, the government realised N255.2 billion as against the N309.9 billion projected, representing 82.2 per cent performance with a variance of N54.7 billion.

The recurrent revenue, made up of government share of Federation Allocation Account  Committee and Internationally Generated Revenue (IGR) was N150.3 billion as against N157.7 billion representing 95.3 per cent performance with a variance of N7.5 billion.

The government share of FAAC was N90.3 billion as against N83.2 billion, representing 108.5 per cent performance with an increase of N7.5 billion.

The IGR was N59.98 billion as against the N74.5 billion, representing 80.5 per cent performance leaving a variance of N14.6 billion.

The report also shows that transfer to capital Account amounted to N103.5 billion as against N87.3 billion representing 118 per cent performance recording an increase of N16.3 billion.

Capital receipt, made up of Aid and Grant, and Capital Development Fund (CDF) Receipt for the year amounted to N62.3 billion as against N109.6 billion representing 56.9 performance with a variance of N47.2 billion.

Aid and Grant was N40.3 billion as against N63.3 billion representing 63.6 per cent performance with a variance of N23 billion, while CDF was N22.1 billion as against N46.3 billion representing 47.7 per cent performance.

On revenue generation by Ministries, Department and Agencies (MDAs), the Ministry of Finance led with N143.6 billion, representing 96.2 per cent of the N149.3 billion targeted for the year.

Kaduna State Internal Revenue Service also generated N35.3 billion representing 117.7 per cent of the N29.9 billion target, recording an increase of N5.3 billion.

Similarly, Kaduna State Urban Planning and Development Authority generated N2.1 billion as against N3.6 billion while Kaduna Geographic Information Management Service generated NN5.1 billion against N12.5 billion target.

On expenditure performance, the health sector recorded 84.2 per cent performance with N31.3 billion expenditure against the N37.2 billion budgeted for the year.

The Ministry for Health spent N17.4 billion as against the N18.8 billion budgeted representing 92 per cent performance.

The ministry was followed by the State Primary Health Care Board, with N8.7 billion against nine billion naira representing 96 per cent performance.

The education sector also recorded a budget performance of 82.9 per cent with N66.2 billion expenditure against the N79.9 billion allocated to the sector for the year.

The State Universal Basic Education Board spent N20.1 billion out of the N22.6 billion allocation for the year representing 91 per cent performance.

The Ministry for Education followed with an expenditure of N33 billion out of the N37.3 billion allocation for the year, representing 88.4 per cent performance.

Reacting, Mr Yusuf Goje, a public finance analyst, observed that despite the commendable performance of the IGR, many of the revenue generating MDAs did not meet their targets.

Goje also pointed out that while education, health and public works and infrastructure sub-sectors performed above 80 per cent, agricultural sector recorded only 50 per cent performance.

He said that the sector spent only N1.2 billion out of the N2.3 billion allocation, while describing the development as “very disturbing” considering the contribution of the sector in the state economy.

The Kaduna State Government has generated N44 billion as Internally Generated Revenue (IGR) from January to October 2022, according to the State Bureau of Statistics (KDBS).

The performance was based on the Monthly IGR Performance Report, published on KDBS website on Jan. 4.

The N44 billion IGR generated represents 62.4 per cent of the N70.5 billion projected revenue target for the year, leaving a variance of N26.6 billion.

Kaduna State IGR Monthly Performance in billions (N) from Jan. to Oct., 2022

According to the report, the IGR increased from N2.9 billion in January to N5.8 billion in June and further upward to N9.8 billion in September before declining to N3.6 billion in October.

The N3.6 billion generated in October represents 61.2 per cent of the N5.9 billion targeted for the month.

It listed the five top performing revenue generating agencies to include Kaduna Internal Revenue Service with N1.5 billion, the Ministry for Finance with N1.3 billion and Kaduna State Geographic Information System with N320.4 million.

Others were the Kaduna State University with N108.9 million and Kaduna State Urban Planning and Development Agency with N65.9 million.

Reacting to the development, Mr Simeon Olatunde, Coordinator, Kaduna State Tax Justice Network, rated the performance as average.

He urged the state government to strengthen the implementation of tax for service initiative with a view to improve revenue generation to meet its targets.

Olatunde also called on KADIRS to strengthen its automated revenue collection mechanism and block leakages to guard against siphoning of revenues into private pockets.

“We are also calling on taxpayers in the state to support the government through voluntary tax payment to enable it to deliver development projects that will impact on the lives of the people,” he said.

Kaduna State Government has attracted a total investment portfolio of $4.48 billion comprising actualized and announced investments in the last seven years, Gov. Nasir El-Rufai, has said.

The governor also said that the efforts had resulted in creating 75, 750 direct and indirect jobs.

El-Rufai made this known in his presentation on Saturday at the 7th Kaduna Economic and Investment Summit, which commenced on Thursday.

According to him, the flow of investments is a result of the state government’s continuous effort of providing conducive environment for the private sector to drive the economy through numerous policy actions and reforms.

The governor gave a recap of what his administration achieved since inception and why investors should invest in Kaduna state.

According to him, the state has abundant natural resources, a productive workforce, steady economic growth and serves as the gateway to the northern market.

‘’Kaduna state is also the most improved state in 2018 Ease of Doing Business Subnational report by the World Bank and it has a very investor-friendly environment,” he added.

El-Rufai further said that the state ‘’is also the third biggest consumer market in Nigeria, the third most populous state in Nigeria and has 52% of Nigeria’s consumer market.

‘’Besides, Kaduna state is rich in mineral resources as it has over 25 non-oil mineral deposits, including gold, iron ore and marble,’’ he added.

The governor said one of the major achievements of his administration was raising N52 billion Internally Generated Revenue in 2021, as against N11 billion in 2015, when he assumed office.

He listed other achievements to include the remodeling of Murtala Muhammed Sqaure, which now has world class sporting facilities, shopping malls, restaurants and various recreational centres.

Others are the construction of urban roads in Kaduna, Kafanchan and Zaria, upgrade of schools infrastructure, construction of Kawo and Barnawa flyovers.

‘’KDSG has handed over Zaria Pharmaceuticals to private investors who will produce syringes, intravenous fluids and specimen bottles.

“The revamped company is expected to create 200 direct and over 1,000 indirect jobs,‘’ he added.

According to him, the government has offered loans to women, built a Technology Cit at Barnawa, with CoLab Innovation Campus as anchor tenant.

“The manufacturing facility of AMA Medical, a plant built to produce intravenous fluids, was also commissioned,’’ he recalled.

He said that the innovative Zipline’s  operations for instant delivery of medical consumables to health facilities was inaugurated at Pambegua, the first of three planned distribution hubs in the state.

‘’KDSG signed a technical and management service agreement with Doctors Clinic Company of the United Arab Emirates on the 300 bed hospital at Millennium City.

‘’In addition, it also signed an agreement with Elekta for the purchase of equipment for the nuclear medicine and oncology centre at the hospital.

“This will expand the national capacity for treating cancer,’’ he said.

On the theme of KadInvest 7.0,  “Building  a Resilient Economy’’, the governor said it was for the state government to be innovative in the wake of the global economic slowdown and to sustain ongoing reforms.

According to El-Rufai, states should ‘’begin to innovate and become more resilient against global economic shocks.

“And begin to harness their comparative advantages to increase internally generated revenues and job creation to withstand these crisis.’’

The Kaduna State Government is to spend a total of N4 billion to uplift more people from poverty and vulnerability in 2022.

This is contained in the budget N278.6 billion signed by Gov. Nasir El-Rufai on Dec. 22.

N5.4 billion was allocated for the Ministry of Human Services and Social Development (MHSSD) for capital expenditure,

The document also showed that N1 billion would be spent on the Children at Risk programme and N2.9 million for the repatriation of foster and destitute children.

It also showed that N180.1 million was allocated for Kaduna State Women Empowerment Funds, N24 million for creative arts and culture, and N18 million for Vagina Visco Fistula Intervention.

Also, N37.2 million was earmarked for child protection services, N20.4 million for support and assistance for the completion of 23 community self-help projects across the state. 

A total of N15.6 million was earmarked for the establishment of the Kaduna State Youth Parliament, N20.4 million of Sexual Assault Referral Centres, and N100 million for the Disability Trust Fund.

The government further provided N27.6 million for the provision of adequate complementary food to children with moderate acute malnutrition to children aged six to 23 months.

A total of N5.6 billion was allocated to the ministry, representing two per cent of the total budget size, of which N5.4 billion was for recurrent and N147.3 million for capital.

Under the recurrent expenditure, N583, 000 was allocated for gender activities, N1.4 million for special day celebration, N440, 000 for supervision and N1.7 million to support National Youth Service Corps activities.

The state government also earmarked a total of N280.2 million for the State Rehabilitation Board of which N147 million was allocated for the completion of the three ultra-modern rehabilitation centres at Soba, Birnin Gwari and Jaba Local Governments.

For the N133.2 million allocated for recurrent expenditure, N2.5 million was for drugs, laboratory, and medical supplies, N7.5 million for teaching aids and instructional materials and N33 million for foodstuff and catering materials supplies.

Also, N600, 000 was earmarked for special day celebrations, N5.4 million for the rehabilitation of persons with disability, and N8 million for resettlement tools.