Ogun paves way for higher investments in 2017

. Explains high level of industrialisation 2016

Parts of the promises made by Ogun State Governor, Ibikunle Amosun for 2017 are to reduce youth unemployment, enhance poverty alleviation and provide socio-economic empowerment through infrastructure development to attract new investments for further industrialisation.

But admitting that the economic environment is very challenging, he insisted that it was crucial to reposition the state economy, given that its traditional revenue sources, mainly from the Federation Accounts, are under serious pressure, even as the outlook remained uncertain.

To achieve these, a whole lot of considerations had to be made, and factored into the proposals for the 2017 Appropriation Bill, which he tagged: ‘Budget of Repositioning’, which the governor presented to the State House of Assembly on November 22nd.

Specific proposals in the budget to achieve set targets were in the areas of health, agriculture, commerce and industry, housing and urban development and a host of others.

To demonstrate his government planned to walk the talk, about 53.50 per cent or N118.31 billion of his N221.129 billion 2017 Budget is proposed for capital expenditure, as shown in the components table below:

Expenditure Items Amount N (bn) % of Total
Salaries & Allowances 62.73 28.37%
Pension & Gratuities 11.2 5.06%
Total Personnel Cost 73.93 33.43%
Overhead Cost 28.89 13.07%
Total Recurrent Expenditure 102.82 46.50%
Capital Expenditure 118.306 53.50%
Total Budget 221.129 100.00%

Based on the high personnel and overhead costs, he expressed his Government’s resolve to further minimise costs and continually maximise and diversify its capacity to generate revenues.

He added that it was also important to acknowledge efforts being made by his administration to enhance the State’s Internally Generated Revenue (IGR), which are payments are made by both Individuals and Corporate bodies resident in a State, who are also eligible to pay tax.

Accordingly, the budget is expected to be funded through:
Source Amount N (bn) Percentage

IGR 114.34 51.71%
Federation Account 41.00 18.54%
Total Revenues 155.34 70.25%
Capital Receipts 65.78 29.75%
Total Funding 221.129 100.00%

According to Amosun, “We will continue to do the very best in pursuit of our ‘Mission to Rebuild’ agenda, despite the difficult economic times.”

He said the mission is underpinned by ‘Five cardinal programmes’, of which more than N146.545 billion or 66.27 per cent of the budget will go into the funding of these programmes, including;

Affordable Qualitative Education – N47,054 billion, 21.28 per cent
Efficient Health Care Delivery – N15.105 billion, 6.83 per cent
Agricultural Production/ Industrialisation – N11.610 billion, 5.25 per cent
Affordable Housing/Urban Renewal – N28.575 billion, 12.92 per cent
Rural & Infrastructural Development/Employment Generation – N44.201 billion 19.99 per cent

Specifically, to boost employment generation, he said the state will among others; “acquire an additional 100,000 hectares of agricultural land for allocation to genuine and sincere investors to promote commercial farming in the State.

“Intensify the production of horticultural crops using greenhouse technology. Promote open field cultivation through the installation of irrigation facilities for all-season production with particular emphasis on tomatoes, pepper and other vegetables.

“Develop arable and perennial exportable crops through the establishment and expansion of Cocoa, Oil Palm, Cotton, Kola and Cashew plantations; produce maize, rice seeds and cassava cuttings for sale to farmers at highly subsidised rates; and invest in poultry livestock and fishery to boost protein supply to our citizenry.”

Furthermore, to drive investments in the state, Amosu said priority will be given to the development of industrial parks in Onijanganjangan, Sagamu and Igbesa; reconstitute the Board of Ogun State Agricultural and Multipurpose Credit Agency (OSAMCA) to ensure that they are able to facilitate the Micro Small and Medium Enterprises (MSMEs) development programme of the State.

In recognition of the importance of adequate housing for all, he said his government will provide land for 10 Hectares Housing Estates in three locations, develop 650 Hectares of land with infrastructure for medium and heavy industrial factories at Agbara, and commence the development of the Abeokuta City Centre in the coming year.

Part of the plan is also to construct a world-class convention centre, provide infrastructural facilities on the remaining 450 Hectares of the President Muhammadu Buhari Estate, and crop enumeration and compensation of land owners of acquired land.

Amosu noted that the vast potential of Ogun State cannot be denied, as it has the potential to build economic strength through Agriculture, Solid Minerals, Trade, Tourism, Services as well as Commerce and Industry, which when vigorously pursued will translate into opportunities, productivity and wealth for the people.