Olorogun Kenneth Okpara is the Commissioner for Finance and the Coordinating Commissioner in-charge of the Delta State Ministry of Economic Planning. In this interview with journalists during the Mid-Term Ministerial briefing in Asaba, Opara explained how the N50 billion bond accessed by the state was expended and how his boss and Delta State Governor, Dr. Emmanuel Uduaghan, had judiciously expended the oil money that have accrued to the state since he assumed office in 2007. ADEWOLE MARTINS was there for The Eagle Online. Excerpts:
What have been your major achievements since you were appointed by Governor Emmanuel Uduaghan as Commissioner for Finance?
The growth of the state’s Internally Generated Revenue. It has grown from N11.952 billion in December 2007, the year His Excellency, Governor Emmanuel Uduaghan, assumed office, to N38.762 billion as at September 30, 2013, a percentage growth of about 224.3 per cent for about six years period ended 30th September, 2013. The result-oriented strategies that catalyze the leap in IGR are not far-fetched. The Governor restructured the management team of the Board of Internal Revenue in line with the Consolidated Revenue Law, 2009 and strengthened the internal processes, control and monitoring of the board to forestall leakages. Besides, he provided appropriate ICT platform for the board to automate IGR collection via e-receipts and e-TCC schemes and established nine ETCC printing centres among the three senatorial districts of the state. Twenty-one out of the 55 offices of the BIR across the states are online to the effect that there is a significant reduction in revenue leakages. To populate the Tax Net, the BIR is now interfacing with the Ministry of Lands, Survey and Urban Development for automation of land and stamp duties’ activities and other MDAs will soon be included. We didn’t leave out aggressive media and tax awareness campaigns. As I speak to you, Delta State is currently one of the six pilot states for the Joint Tax Board Taxpayers’ Identification Number project, an electronic system of tax payers’ registration. We have also ensured the enforcement of PITA provisions as it affects PAYE operations in public service. Our Internal Revenue Consolidation Law, 2009 is being enforced as it relates to all IGR to the BIR by MDAs. Besides, we have established a Debt Management Department in the ministry to be responsible for harmonizing and managing the state’s internal and external debts as well as periodic reconciliation of accounts with the Revenue Mobilization Allocation and Fiscal Commission and local banks. Also the establishment of Project Financing Management Unit in the ministry has resulted in improved monitoring and reporting of financial activities of the state and in compliance with the Fiscal Responsibility Law. Moreover, the 7.5 per cent Public Servants’ Pension contributions swelled to N11.180 billion as at June, 2013, even as 10 per cent state government total contribution of approximately N14.907 billion to the Contributory Pensions Scheme for the same period. We have kept to our avowed promise of regular monthly salary payments to civil servants and staff of parastatals on or before the 25th of every month in line with the policy of timely and effective service delivery to the people, even as all revenues accruing to the 25 Local Government Areas of the state and Federation Accounts are released promptly to the councils to cater for their recurrent and capital demands.
What about disbursement to the state’s Oil Producing Area Development Commission, especially the laws establishing 13 per cent derivation?
It may interest you to know that a total of N179.4 billion has been released to DESOPADEC to execute its activities within the period under review. Check it out: between May to December 2007, N10,535,304,919.86 was disbursed to the commission. In 2008, N29,488,055,439.20 was released. In 2009, N27,859,353,029.75 given. The following year, M19,800,000,000.00 was disbursed. The year after, N36,336,076,346.51 was released to the commission. In 2012, 36,500,000,000.00 was disbursed. Between January and September last year here, N18,857,827,487.20 was disbursed. What we have disbursed so far have amounted to N179,376,617,222.52, and we are in another year now.
Despite the fact that Delta State is rich, it is still borrowing from the Capital Market. What is responsible?
The aggregate expenditure incurred by the state government between May 2007 and September 2013 amounted to N1.45 trillion, comprising N773.45 billion as recurrent expenditure and N676.13 billion as capital expenditure , against recurrent expenditure provision of N845.38 billion and capital expenditure provision of N1.18 trillion, respectively. So, my brother how has that amounted to extravagancy? We have not trespassed our boundary. Instead, we have been judicious in our spending.
What has the state used the N50 billion bonds it took for?
Yes, the ministry in 2011 secured a N50 billion Infrastructural Development Bond Programme to execute various projects including the development of the Warri Industrial Park and others. The Warri Industrial Park takes N3.0 billion from the total amount, the dualization of Ughelli-Asaba expressway gulps N5.0 billion, the dualization of Effurun-Eku road another N5.0 billion, the dualization of Ugbenu-Koko road N2.0 billion, the four new state polytechnics take N4.0 billion, the Delta state University Senate Building N1.0 billion, Sapele Modern Market N1.0 billion, Education Initiatives – Primary, Secondary and Tertiary projects gulp N8.8 billion, N2.2 bilion was expended on the rehabilitation of Eku Baptist Hospital, the Maternal and Childcare Centre, Central Hospital Warri takes N1.0 billion. We also spent 0.5 billion on Ekpan Maternal and Childcare Centre, N1.0 billion on the state’s School of Engineering, 0.5 billion on the School of Maritime Technology, N1.0 billion on rehabilitation of courts, N2.0 billion on Warri Water Project, N5.5 billion on Transportation (Taxis, Boats, Big Buses) and N3.1 billion on the construction of township roads within Asaba, Warri, Agbor, Sapele and Abigborodo.
Your boss has always told those who care to listen that his administration is highly interested partnering local and foreign investors. Has it invested in any way since 2007?
The Ministry through its investment arm, Ministry of Finance Incorporated, holds a well diversified investment portfolio measured at market value for quoted investments and at cost of acquisition for unquoted investments valued at N14,372,467,052.60 as at September 30, 2013. MOFI’s investment strategy takes a holistic approach focused not only on maximizing profits but also on positively impacting on the livelihood of Deltans through its investment in power generating companies, recapitalization of Delta Trust Mortgage Finance Limited to provide long term mortgage financing for Deltans and release of counterpart funding with Bank of Industry for on-ward lending to the small and medium scale enterprises in the state. The dividends received between 2007 and 2013 is over N3,983,712,576.35. In 2007 alone, we realized N264,129,405.79. it rose to N978,785,325.66 in 2008. It dropped to N19,706,022.92 in 2009. It rose again in 2010 to N355,979,328.73. it experienced a slight drop in 2011’s N182,506,125.67. It was a bumper harvest in 2012’s N1,588,479,560.03. It dropped to N594,126,807.35 last year. So, we have raked in N3,983,712,576.35 so far through our investment drive. And since we have effectively coordinated the Overseas Development Assistant Department and monitored the implementation of donor assisted projects and the utilization of donor funds. The development partners who we currently work with include UNDP, UNICEF, World Bank, EU (MPP9), and UNITAR among others.
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