Integral Development of Communities for a World Without Poverty.

Archive for March, 2012

Niger Delta Citizens Budget Platform Analysis of Edo State 2011 Budget.

Analysis of the 2011 Budget of Edo State

 

Edo State is one of the six states in the South-South Region also called the Niger-Delta Region of Nigeria. It has a total landmass of approximately 17,802 sq km and a population of 3,497,502 (2006 National Population and Housing Census). The state was created in 1991 along with Delta State when the defunct Bendel State was dissolved. Edo State is bounded in the North and East by Kogi State, in the West by Ondo, and in the South by Delta State respectively. It has vegetation comprising of fresh water swamps, rain forest and rocky hills to the north introducing the guinea savanna high lands of northern Nigeria. Administratively the State is divided into eighteen Local Government Areas, its administrative headquarters being Benin-City.

Comments from one of the participants at the Edo State Budget Monitoring analysis report presentation

Edo is one of the oil producing states in Nigeria and by virtue of that fact, benefits from a special allocation of 13% based on the quantity of crude derived from its territory. Consequent upon this, Edo State has a fiscal edge over other non oil producing states in the country. However, this edge does not stand it out from other states of the federation in terms of infrastructure, human development and capital base. On key indices, the state fares the same or even worse than other less endowed states.

Access to Budget, Fiscal Data and Citizens’ Participation

As at the middle of the year, Edo State had a copy of it annual budget as well as the Governors Budget Speech available on its website. This indicates an openness with budget documents that is rare in Nigeria. However, the same cannot be said about the availability of other vital fiscal documents.

Edo State like other states covered by the Platform’s intervention in the Niger Delta, does not have any significant mechanism for seeking citizens’ input in the policy direction of the state and its expenditure preferences. From the point of formulating the budget up to when the projects and programmes are implemented and audit is carried out, citizens’ have very negligible or no roles at all. This neglect which is widespread in the Niger Delta States, has the disadvantage of alienating citizens from a process which ordinarily should be informed by their development priorities and galvanize their collective participation at all stages. In Edo State as in many Niger Delta states, this had led to government policies that do not reflect the aspirations of the vast majority.

Edo State and Fiscal Management Mechanisms

 

The Fiscal Responsibility Act and Public Procurement Act enacted by Nigeria’s National Legislature are mechanisms designed to provide for the prudent management of the nation’s resources, ensure long term stability of the economy and ensure that accountability and transparency are observed as core ingredients in the management of public resources. Having been passed at the national level, Nigeria’s federal constitution requires that the same law be domesticated at the state levels. This domestication translates that the State legislature passes similar laws to pursue the same objectives howbeit within their domains. It is also required that the state governments take steps to establish fiscal responsibility and public procurement agencies which will guarantee the smooth implementation of the mechanism and strict compliance with its provisions.

Edo State has neither a Public Procurement Law or a Fiscal Responsibility Law, however components of both fiscal mechanisms are currently before the State House of Assembly for their consideration. The absence of these Laws in the fiscal management processes in Edo State translates that best practices in contracts award and financial management are not strictly followed. The consequence of this could be the emergence of avenues for leakages, patronage and fiscal fiat, all of which are detrimental to the State.

 

Policy Thrust

 

In his speech made while presenting the 2011 budget to the Edo State House of Assembly, the State Governor gives the policy objectives of the state thus:

Mr. Speaker, the 2011 Budget strategically reinforces our Administration’s overall objectives of infrastructural renewal, human welfare, employment and wealth creation as well as the deepening of popular participation in governance and development.

From the foregoing, it is manifest that the state government seeks to pursue infrastructural renewal, while ensuring human welfare (which include education and healthcare amongst others), creating employment opportunities, and ensuring the participation of citizens in the development and governance of the state. A quick reflection on the aspect of ‘deepening popular participation in governance and development’ vis a vis what is obtainable in the state indicates that this aspect is either none existent or is still at a very negligible state. As mentioned earlier, there are no institutional structures or conventions in the state to achieve this level of participation.

Budget 2011

 

In 2011, the Edo State Government presented a total budget of N105.9billion. After its deliberations, the House of Assembly eventually passed an amended budget of N112.7billion.  Of this amount, N43.9billion is earmarked for recurrent expenditure while N68.8billion is for capital expenditure.

This represents a budget share of 39% for recurrent expenditure and 61% for capital expenditure. This distribution is considered fair given the huge infrastructural development needs of the State. The 2011 budget also represents an N11.7billion nominal increase when compared to the 2010 figure which was N101billion.

2011 Revenue Streams

The Chart above shows the various sources the Edo State Government proposes to finance its 2011 budget from. Statutory Allocation is the highest source with 40% expected. 13% derivation is expected to also provide 4% of the budgetary funds. These two sources which amount to 44% of needed funds for the budget, are both dependent on transfers from the federation account. These transfers on the other hand are not stable as they depend of the health of the international oil market. The danger in predicating such overwhelming portion of the state budget on these sources is that the state exercises no control over its flows. It is therefore difficult for the state to be definite on what it will actually receive from these sources making it hard for planning in the medium and long term. It also accounts for sharp rises and declines in budget performance. For instance, while the 2010 budget expected to generate N44.5billion from the federation account, it had only received N30.5billion as at September.

Internally Generated Revenue on the other hand represents that source of revenue which the state has some measure of control over, and which has the potential of making the fiscal fortunes of the state stable and allow for greater planning. This source of revenue accounts for just 16% of the 2011 budget. In 2010, IGR was expected to provide N18billion, but as at September 2011, only N9.2billion had been realized.

In nominal figures however, Internally Generated Revenue contribution to the State’s Annual Budget has steadily improved over the last three years with a monthly average generation rising from N300m to N800m as revealed by the Governor in his 2010 Budget presentation speech. But the IGR ratio in the total annual budgetary estimates has been in steady decline from 30.2% in 2009 down to 29% in 2010 and further down to 24% in 2011.

The 2011 revenue projections also leans largely on loans and grants. External Loans are expected to provide 8%, Internal Loans 7% and Grants 11%. Cumulatively, the government is out sourcing 26% of its 2011 budget. This trend is dangerous in the sense that it could bequeath a debt repayment burden on the state. The more proper and prudent direction of the government will be to develop internal sources of revenue generation including taxes, and predicate its budget on benchmarks it is sure of achieving. From the information given in the budget, this was not the case in 2010 and certainly not the case in 2011.

2010 Budget Performance

 

The 2010 budget performance data provided in the budget leaves very little to be desired. In his 2011 budget speech, the state Governor also admits the dismal performance of the 2010 budget. For instance in the area of revenue, while expected recurrent accrual in 2010 was N69.1billion, actual accrual as at end of the third quarter was just N44.5billion, representing only 64%. Also, total expected capital receipt was N32.8billion in 2010, what was actually received as at September 2010 was just N4.2billion. This shows a performance of just 13%. Predictably, this shortfalls impacted negatively on the overall budget performance for 2010. Out of a total capital expenditure budget of N62.3billion, actual expenditure as at September 2010 was just N13.8billion, indicating a dismal performance of just 22%.

 

 

 

Education

 

In the 2011 budget, the Education sector is given a capital allocation of N7.5billion. In 2010, it was allocated N7.2billion. This represents a nominal rise of N300million. However, in real terms using an annual inflation figure of 9%, the value stands at N6.8 billion indicating a decline of N400million.

The allocation to education amounts to 11% share of the overall capital budget. While this does not meet up to the 26% recommendation to the education sector, it nonetheless shows a reasonable commitment to the government’s policy direction, especially when viewed alongside other allocations in the budget. It is however recommended that such allocation be increased progressively to tackle the education challenges in the state.

On the other hand, the performance of the 2010 education capital budget raises concerns as to the level of impact the 2011 allocations will have. While N7.2billion was allocated in 2010, as at September of the same year, just N1.4billion had been utilized. This indicates a performance of just 19%. It is doubtful if the full allocation could have been expended with just three months left in the fiscal year. Going by this reasoning, questions arise as to the actual commitment of the government in pursuing transformation in the education sector.

 

Health

 

In the 2011 budget, health is allocated N2.7billion. In 2010, the allocation was N1.7billion, showing that the allocation has increased nominally by N1billion or 63%. This figure represents a 3.9 share of the overall capital outlay.

While the increased allocation in 2011 is commendable, it however does not show any commitment on the part of the government in the area of health care. As a percentage of the total capital budget the allocation falls short of indicating the government is truly committed to pursuing a policy of health care for its citizens. In per capita terms, the government is only budgeting to spend N772 on the health of each of its 3,497,502 population.

It gets worse when expenditure of the 2010 allocation is considered. While N1.7billion was allocated, as at September 2010, only a meager N149million had been used. This reflects only 9% utilization of the allocation. If this fiscal scenario is repeated in 2011 and in subsequent years, it will further alienate the citizens of Edo State from proper and affordable health care.

 

As very critical sectors in realizing the objectives of the administration, the low attention accorded these sectors by the Edo State Government is worrying. This argument is made on the backdrop of that the fact that during the same period, allocations for Overhead Cost for the vague items Department of Government House & Protocols (Head 412A), Office of the Governor (Head 412B) and Office of the Deputy Governor (Head 412C) which was N2.5billion had a performance of 75%, surpassing performance for Education, and performance in Health.

Conclusion

 

It is worthy to note that in comparison some other Niger Delta States, Edo State has proven outstanding in the availability of its budget document, and has also been the first to abandon the contentious practice of allocating money for ‘security vote’. While this is commendable, it should also be noted that the capital budget still allocates substantial funds to items such as ‘government house and protocol’ and to the State House of Assembly.

It will seem from the budget that the Edo State Government is fixated on urban renewal and construction of roads (though good in themselves), at the expense of other vital sectors of the economy. It is advised that a balance is created that will ensure even and all round development of all the sectors.

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Edo Citizens Suggest Areas you want more focus from Government in 2012

Kindly suggest areas you want Edo State Government to focus more on in 2012.

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With fellow participants at the Managing Natural Resources in Post Conflict Recovery and Re integration Course in Montreux Switzerland.

With fellow participants at the Managing Natural Resources in Post Conflict Recovery and Re integration Course in Montreux Switzerland.

NRM Participants

Our Profile

Action For Community Development

Founded in April 2006.

 

Vision: The integral development of communities for a world without poverty.

 

Values: Integrity, Transparency, Accountability and Teamwork.

 

Mission: To empower and inspire women and youths of selected local communities to have a sense of responsibility in order to ensure a healthy, peaceful and prosperous community with access to information and innovative projects for integral development.

 

Programme Areas

  1. Popular participation, human rights, governance(revenue transparency and accountability in oil and extractive industry sector).
  2. Community information and community special projects scheme.
  3. Community Health Development( Reproductive Health, HIV & AIDS and Malaria).
  4. Water, Sanitation,Environment and Climate Change
  5. Community Research Advocacy and Peace Building.Conflict Transformation, Natural Resources Management,Post Conflict Re-integration, alternative options
  6. Community Women and youth empowerment, sustainable livelihoods. Women’s Rights

 

Target Group: Communities, Women and Youths.

 

How We Work.

We believe that poverty is mostly caused by human factors and systems that keep local people poor especially by depriving them of what is rightfully theirs. We also believe that if given the opportunity and necessary support local people can rise out of poverty and live a life of dignity. Therefore in our work to fight poverty we employ two main approaches-

  1. The rights based approach to poverty eradication by training local community people to be empowered and conscious of their rights, be able to hold their leaders in government accountable and  advocate for positive changes in their community.
  2. The community self help approach which recruits local volunteers from the communities and equips them with training on community development(civil responsibility education, value re orientation, human rights, community health education (reproductive health education, malaria e.t.c) thus enabling them to partner with others in the community for community development.
  3. We know that for development to reach the grass root  communities that we represent, there must be revenue transparency  at the federal, state and local government levels. It was this knowledge and passion that led us to join the Publish What you Pay Coalition in Nigeria since October 2006. Few months after we started.

Also in our work we communities we recognize that communities are made up of people and their neighbourhoods. And communities cannot be developed if either of the two is neglected. Thus focus is on neighbourhood development and people development(empowerment) with women and youths as our target groups.

We also work with special groups (communities), like associations, pressure groups, trade unions, e.t.c to assist them to re focus and strengthen their organization for improved service delivery

 

THE KEY DEVELOPMENT AND HUMAN RIGHTS CHALLENGES OF COMMUNITIES THAT WE ADDRESS

1.Marginalisation of local community people and exclusion from governance and development .

2. Lack of transparency and accountability in governance and oil and revenue sector.

3. Poor health- low level of knowledge of sexual and reproductive health and lack of community capacity to respond to important health issues.

4.Environmental degradation and mismanagement (lack of safe water and sanitation)

5.Lack of a sense of responsibility for development by local communities.

6.Poverty and lack of empowerment opportunities for women and youth.

7. Community peace and security challenges.

8. Exclusion of local community women from development and infringement of their rights.

 

 

 

Some Past Activities

 

*Attended a course on Managing Natural Resources in Post Conflict Recovery and Re-integration in Montreux Switzerland From 26th of February to 3rd of March 2012.

 

*. Served as local organizing NGO for Social Actions Political Education Seminar and Camp in Benin City (March 10th -15th ) 2009.

*.Organized one week human rights training with materials provided by Women Ink International of young ladies (18-30 years) on (Empowering Young Women To Lead Change).

 

* Served as the official Independent Electoral Commission (INEC) Complimentary Observer for Edo State in the 2011 General Elections.

 

*.Currently implementing European Union Micro Projects 9 EUMPP9 in 10 Communities in Edo State with governance  HIV and Gender Mainstreaming as part of project implementation. March 2011 till date

*. Organized advocacy rally to mark the international Women’s Day March 2010.

*. Organized a one month sanitation intervention to clean up Edo State as part of activities to mark this years World Environment Day. (From 5th – 26th of June 2010).

*.Attended NEITI meeting with Budget Groups in Edo State and participated as one of the paper discussants. June 9th 2010.

 

* Step Down Training for local communities on the Edo State Strategic Plan on HIV & AIDS (August 2008)

* Peer Education Training of Member and Partners (July 12 – August 16th 2008).

Palliative Home Based Care Training (August 2008)

 

*. Establishment of HIV & AIDS Information Network

http://health.groups.yahoo.com/group/hivaidsinfonetwork/ (August 2008.)

 

* Organized HIV / AIDS Training Course for  AIESEC Club University of Benin Chapter as part of requirements for them to implement Project Ask. (July 2008- September 2008)

* Implementing Community Women Safe Sex and Prevention of Mother to Child Transmission of HIV (COWSSAP) Project . (Septemer 2011 to August 2012.)

* .Commenced implementation of the Improving Reproductive Health in Nigeria (IRHIN) Project as the CSO implementation partner in Edo State with Society For Family Health and funded by USAID.October 2009 – Octoberber 2010. With final project dissemination meeting in May 2011.

.Research of informal policing structures in Edo State. (January-March

 

*.2007) (Project identified the various vigilante groups in the state and their level of cooperation with the police and level of human rights violations.

8..Fostering a better police community relationship by organizing police station visitors week in Edo State. October 24- 27th 2007.in conjunction with Altus Global Alliance and Cleen Foundation. (www.altus.org)

*. Organisation of World Water Monitoring Day in Edo State. (October – November 10th 2007)

*. Publication of Community Builder Magazine (2008 till date)

*.Attended Electoral Reforms Committee Sitting and made a presentation on the establishment of Electoral Offences Tribunal. May 30th 2008

*. Reproductive Health training For Young Adults (May 2008 Till Date)

with Society For Family Health and funded by USAID.October 2009 – September 2010.

 

* .Human Rights awareness and promotion among youths. (June 2009 Till Date) We received a Special human rights  DVD from youthforhumanrights.org that we have been using to provide enlightenment since June 2009.

*.Attended Maternal Mortality conference in Abuja organized by WHARC in August 2009.

*.Commenced implementation of the Improving Reproductive Health in Nigeria (IRHIN) Project as the CSO implementation partner in Edo State with Society For Family Health and funded by USAID.October 2009 – September 2010.

*.Attended NEITI (Nigeria Extractive Industries Transparency initiative Road Show in October 2009 in Bayelsa.

*.Attended and participated in a two day conference on Host Communities and CSOs Consultation Forum on the Petroleum Industry Bill November 27-28 2009 by Social Action.

*. Attended  CSOs Training on Fiscal Responsibility Bill organized by ANEEJ on the 30th of November 2009.And later participated in the presentation of the CSOs position paper on the bill to the Edo State House of Assembly one week later.

*. Carried out Advocacy visit to the Coordinator of Primary Health Care in Egor Local Government Area and Organized Training of Nurses(Health Care Providers) in Evbuotubu Health Centre on Family Planning Counselling. (February 2010)

 

 

Networks

 

  1. Member World Toilet organization.
  2. Member Civil Societies for HIV & AIDS in Nigeria (CiSHAN) Edo State Chapter
  3. Member Nigeria Network of NGOs and CSOs For Population and Reproductive Health (NiNPREH) Edo State Chapter.and the Current State Convener (Coordinator) of the network.
  4. Founding member of Conference of NGOs in Edo State and member of the Research and Strategy Committeee.May 2010 till Date
  5. Member Publish What You Pay Coalition. Since 2006
  6. Member Nigerian Civil Societies Network on Water and Sanitation (NEWSAN).

 

Organizational Structure

Board of Trustees

Executive Committee (headed by the Executive Director)

(Administrative Staff)

Volunteer Network.

Staff Strength : 6 Full time Staff and 15 Part time Staff.

And over 100 Volunteers.

 

Sources of Funding.

  1. From members and Volunteers.
  2. From our mentoring NGO (Lift Above Poverty Organisation (LAPO))
  3. From Research fund from Cleen Foundation.
  4. From local partners.
  5. From personal contributions and support from family members.
  6. From  IRHIN Project.
  7. From NNVS Sanitation Project.
  8. EU MPP9 Project
  9. Global Fund Round Nine Home Based Care Project

 

Registered with Edo State Government (Ministry of Women Affairs and Social Development ) Registration number ED/MWASD/NGOR/20084

(CAC Registration currently going on)

 

Contact Information

Contact Person

Mr Sam O. Ajufoh (Executive Director)

Phone:08033479893 email: actionforcd@yahoo.com

 

Website/Blog: http://actforcd.blogspot.com

www.facebook.com/actionforcommunitydevelopment

http://www.actforcd.tk

 

Office Address:# 8 Ogbahon Street off Upper Owina Road Evbuotubu Quarters  Benin City.

 

Bankers:

Guaranty Trust Bank(GT Bank) Nigeria.

Account name: Action For Community Development

Account Number:422/446592/110

 

 

Action For Community Development Life Aiders Support Group

Irrua General Hospital Irrua Esan Central Local Government.

Other Location of Volunteers, Oredo Local Government Area Egor Local

Government Area, Ikpoba Okha Local Government Area

Orhionmwon Local Government Area.

 

 

 

 

 

 

 

Donate a Computer Book Initiative

donate a computer book

donate a computer book

Action For Community Donate a Computer a book Initiative.

As part of activities to commemorate the 2012 World Book Day on the 23rd of April 2012, Action for Community Development has Flagged off her Youth Empowerment through ICT initiative. Donate a computer/computer book campaign.

For further inquiries contact actionforcd@yahoo.com.

We welcome your donations of Computer books like Auto Desk Maya 2011, Adobe Premiere Pro CS5, PHP programming, Ajax, e.t.c.

Thanks for supporting us to empower Youths in 2012.

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