Today, we are signing into law our Budget of Continued Consolidation. This completes the first phase of the process for the 2021 fiscal year budgeting. First, we got the good people of Oyo State involved in the budgeting process through the town hall meetings, then we prepared the budget and passed it on to the state’s House of Assembly for approval.
After this signing, the real work of implementation begins.
I mentioned during my 2021 budget presentation before the House of Assembly that the 2020 budget had an above average performance of 50.32% as at September 2020. Our aim was at least 70% but the impact of the COVID-19 pandemic and the economic meltdown occasioned by the fall in oil prices affected the budget performance. Having identified the reasons for this year’s performance, we are going to work harder and smarter next year to ensure that we meet our performance target of at least 70%.
We met a lot of our goals because we used the Alternative Project Funding Approach (APFA), and the Contractor’s Project Financing Scheme to finance many projects. We also made use of targeted loans for project financing. Of course, the reward for hard work is more work. So, for the 2021 fiscal year, we will continue to be innovative and creative in our approach to financing.
Let me use this opportunity to thank members of the Oyo State House of Assembly, for once again approving this budget in a timely manner. Surely, the synergy between all the arms of government in our state has made the governance process easier for everyone.
The total sum for the budget is N268.8 billion. You may have read about the rumours in the press that the House of Assembly padded the budget and we had to reduce it. This is simply untrue. As already mentioned, we have some alternative finance models which we will be exploring in 2021. So these projects which the House saw as imperative, will still be implemented. However, we will carry out those projects without incurring higher interest on loans or negatively impacting Oyo State’s economic policies and budget performance.
Let me also quickly add that with Nigeria staring at a second wave of the COVID-19 pandemic, we just have to remain prepared for any eventualities. Some countries are already thinking of a second lockdown. But if we play our part, by observing all the guidelines provided by the Oyo State COVID-19 Task Force, we might weather this second wave without considering a lockdown.
Be that as it may, we continue to maintain a positive outlook for 2021. Many of the projects we started in 2020 have less than 18-month cycles. So, we will see a good number of projects initiated by our administration completed in 2021. For example, the 65km Moniya-Ijaiye-Iseyin Road, 21km Airport Road- Ajia- New Ife Express Road with a spur to Amuloko, and perhaps even the Idi Ape-Basorun-Akobo-Odogbo Barracks road, should be completed in 2021.
By God’s grace, we will watch our first match in the upgraded Lekan Salami Stadium at Adamasingba in 2021. We will even commission the bus terminals all around Oyo State. Those who lost their stores, this year, as a result of the inferno at Akesan market will be happy to move back to the rebuilt market with better facilities next year.
So, there is a lot to look forward to in 2021, God sparing our lives. In fact, a look at the budgetary allocations shows that there is still a lot to be done in various sectors. It is certainly not Uhuru, but we will continue to do our best to make things work in our dear state. It is a budget of continued consolidation, so we continue to ask for your support as we undertake various projects this coming fiscal year.
~ Governor Seyi Makinde, December 21, 2020