Date Published: 07/19/09

Ekiti Govt. to reduce budget by fifty percent

Gov. Segun Oni

Following a massive shortfall in the revenue projections as a result of the Global Economic Meltdown, Ekiti State Governor, Engr Segun Oni has disclosed that the State’s 2009 Budget will be reduced by fifty percent.

According to a statement issued by one of his media aides, Mr. Lere Olayinka, Governor Oni made this known in Ado-Ekiti while receiving the report of the recent review of the remuneration package for political, public and judicial office holders from Commissioners of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

He added that a mid-year review of the 2009 budget was recently held with heads of  Ministries, Departments and Agencies as well representatives of the Legislative and Judicial arms during which it was agreed that the budget should be reduced downwards from N91 billion to a more realistic figure.

The governor, who said that the revised 2009 budget would be sent to the State House of Assembly this week for consideration disclosed that his administration was making concerted efforts to diversify the State’s economy in view of dwindling revenues accruing to it in the wake of the Global Economic Meltdown.

Governor Oni expressed confidence that the small size of the state’s economy would not be a disadvantage to its growth, adding that the state government was relentless in its bid to fast-track the development of the State.

His words; “Our administration has set up an economic management objective of diversifying the  state’s economy through  enterprise development, direct investment in Agriculture  and other  profitable ventures, leasing of moribund state-owned industries and  provision of roads, potable water and other infrastructure in order attract investors.” 

While chiding critics of his government’s investment drive, Governor Oni said; “Our friends in the opposition have condemned us for awarding contracts for the construction of access roads in the Afe Babalola University. But they seem to have forgotten that the roads we are constructing in the university are on Ekiti soil. Why are they so bitter that we are encouraging an investor who sited what is expected to be the nation’s best university in the state? They seem to be ignorant of the fact that our administration embarked on the N680 million Oye-Ire roads because the proposed Crawford University is to be situated along that virgin road. It is even a policy of our administration to provide at least  one-kilometre access road for any investor setting up housing estates that are not less than 50 housing units.”

While commending   RMAFC for a job well done, the Governor said his administration would set machinery in motion for the immediate implementation of the revised emoluments for political, public and judicial officers in the state.                                                                                         
Earlier, the leader of the team  and RMAFC Commissioner, Chief Deji Ariyibi said the Commission came up with the recommendations  as directed  by  President Umar Musa Yar’Adua  after due  consideration of the present economic realities in Nigeria and consultations with important stakeholders in the country.

He said part of the recommendations was that the State Governors, their Deputies as well as political office holders at local government level would no longer receive Severance Allowances.

Ariyibi explained that Governors and their Deputies would however be entitled to gratuities and pensions for life by virtue of the provisions of Section 124(5) of the 1999 constitution.

He noted the recommendations would take effect from July 1, this year