Lagos State 2012 Budget Performance Appraisal

LAGOS STATE GOVERNMENT LAGOS STATE GOVERNMENT MINISTRY OF ECONOMIC PLANNING & BUDGET MINISTRY OF ECONOMIC PLANNING & BUDGET Y2012 BUDGET 4THQUARTER AND FULL YEAR PERFORMANCE APPRAISAL By Mr. Ben Akabueze Mr. Ben Akabueze Hon. Commissioner (MEPB) Hon. Commissioner (MEPB) At Orchid Hotels and Events Centre, At Orchid Hotels and Events Centre, Lekki Friday, 18 Friday, 18th January,2013 Lekki thJanuary,2013 1 MEPB:Q4 & Full Year Budget Performance Appraisal

OUTLINE Purpose of the Presentation Y2012 Approved/Revised Budget Implementation Strategies Notes from Q3 Q4 Performance Review Full Year Budget Performance (Jan-Dec,2012) o Revenue Appraisal o Expenditure Appraisal o Comparative Analysis Observations Conclusion(s) 2 MEPB:Q4 & Full Year Budget Performance Appraisal

Purpose of the Presentaion analyze and deliberate on Q4 and Full year Budget performance (Jan-Dec,2012) examine reasons for divergence from plan establish areas that require improvement suggest the way forward MEPB:Q4 & Full Year Budget Performance Appraisal 3

Y 2012 Budget Y 2012 Budget Preamble Preamble Y2012 Budget of N491.941bn was signed into law by His Excellency, the Governor on the 3rd of January, 2012. The Budget was revised and signed into law on 12th November,2012 without altering the Budget size. Underlying Policy Thrust of Government: Poverty Eradication and Sustainable Economic Growth Through Infrastructure Renewal and Development. 4 MEPB:Q4 & Full Year Budget Performance Appraisal

Y2012 Budget Approved Budget Nbn 399.834 Revised Budget Nbn 399.834 Detail Total Ordinary Revenue Total Recurrent Expenditure 233.620 233.620 Total Recurrent Surplus 166.214 166.214 Total Capital Receipts 25.677 25.677 Total Capital Expenditure 258.321 258.321 Financing (66.430) (66.430) External Loans (i) DPO (ii) Others Internal Loans Bond Issue 30.000 27.664 37.929 50.000 79.163 491.941 - 27.664 37.929 80.000 79.163 491.941 REPAYMENTS Budget Size MEPB:Q4 & Full Year Budget Performance Appraisal 5

Y2012 BUDGET SIZE: 491.941bn SECTORAL ALLOCATION Education 15% Social Protection 1% Recreation, Culture and Religion 2% General Public Service 22% Public Order and Safety 3% Health 8% Housing and Community Amenities 9% Economic Affairs 31% Environmental Protection 9% MEPB:Q4 & Full Year Budget Performance Appraisal 6

Highlights of Y2012 Budget Projected Revenue Sources FINANCING 66.430 14% CAPITAL RECEIPTS 25.677 5% FEDERAL TRANSFERS 110.158 22% ORDINARY REVENUE 289.676 59% MEPB:Q4 & Full Year Budget Performance Appraisal 7

CAPITAL RECURRENT RATIO RECURRENT EXPENDITURE 47% CAPITAL EXPENDITURE RECURRENT EXPENDITURE CAPITAL EXPENDITURE 53% MEPB:Q4 & Full Year Budget Performance Appraisal 8

Y2012 Budget Focus Y2012 Budget Focus Security (including Food Security) Transportation-Roads & Inter-modal Transportation System Education Health Environment 9 MEPB:Q4 & Full Year Budget Performance Appraisal

Y2012 Budget Focus..2/ Rural/Urban Development Skill Acquisition/Microfinance Water Housing and Urban Renewal E-Governance 10 MEPB:Q4 & Full Year Budget Performance Appraisal

Y2012 Budget Key Implementation Strategies Revenue Stakeholders meeting with the Governor as a vehicle for sustained Revenue drive; Enhanced transparency and accountability; Efficient allocation of resources across sectors; Tighter operating expenditure control; Periodic review of performance; More effective Project Monitoring and evaluation; Benchmark performance set at 90% 11 MEPB:Q4 & Full Year Budget Performance Appraisal

Notes from Q3 Review Notes from Q3 Review Item Q3 % (Jul-Sept.) Q3 Cumulative % (Jan.-Sept) Revenue Capital Receipts Recurrent Expenditure Personnel Cost Overhead Cost Capital Expenditure Financing Q3 Performance was 65% while Q3 Cumulative performance was 72% 80 23 90 99 85 43 (35) 84 42 89 94 86 56 (10) Capital/Recurrent ratio was 41:59 as against 53:47 per the Budget Q3 only performed less but Q3 Cumulative was better than same period in Y2011 at 83% in Q3 and 65% in Q3 cumulative. 12 MEPB:Q4 & Full Year Budget Performance Appraisal

Q1 - Q4 Y2012 Comparison Q1 Q2 Q3 Q4 Details Prov. Jan-Mar. Nbn Actual Jan-Mar Nbn % Perf Prov. Apr.-Jun Nbn Actual Apr-Jun Nbn % Perf Prov. Jul-Sept. Nbn Actual Jul-Sept. Nbn % Perf Prov. Oct.-Dec. Nbn Actual Oct-Dec. Nbn % Perf 80.057 80 89.243 89 Total Ordinary Revenue 99.959 85.103 85 99.959 85.117 85 99.959 99.959 52.602 90 51.913 89 Total Recurrent Expenditure (i) Personnel Cost (ii) Overhead Cost 58.405 50.736 87 58.405 51.858 89 58.405 58.405 20.237 99 19.217 94 20.406 19.046 93 20.406 17.793 87 20.406 20.406 31.690 83 32.365 85 32.696 86 37.999 37.999 34.065 90 37.999 37.999 27.455 66 37.330 90 Total Recurrent Surplus 41.554 34.367 83 41.554 33.319 80 41.554 41.554 1.488 23 1.053 16 Total Capital Receipts 6.419 2.596 40 6.419 3.216 50 6.419 6.419 27.820 43 123.383 191 Total Capital Expenditure 64.580 28.995 45 64.580 51.900 80 64.580 64.580 1.123 7 (85.000) 512 Financing (16.608) 7.968 (48) (16.608) (11.762) 71 (16.608) (16.608) 80.422 65 175.296 143 Budget Size 122.985 79.731 65 122.985 103.758 84 122.985 122.985 MEPB:Q4 & Full Year Budget Performance Appraisal 13

Y2012 Quarterly Budget Performance 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 MEPB:Q4 & Full Year Budget Performance Appraisal 14

Comparative Analysis of Q4 Budget Performance from Y2010 to Y2012 Oct. Dec. Y2010 2011 2012 Details Prov. Oct-Dec Actual Oct-Dec % Prov. Oct-Dec Actual Oct-Dec % Prov. Oct-Dec. Actual Oct-Dec % Perf Perf Perf 89.243 89 Total Ordinary Revenue 91.757 71.418 78 88.080 70.773 80 99.959 51.913 89 Total Recurrent Expenditure (i) Personnel Cost (ii) Overhead Cost 54.252 46.439 86 49.545 46.559 94 58.405 19.217 32.696 94 86 17.057 32.488 18.791 27.768 110 85 20.406 37.999 21.268 32.984 14.038 32.401 66 98 37.330 90 Total Recurrent Surplus 37.503 24.979 67 38.535 24.214 63 41.554 1.053 16 Total Capital Receipts 7.093 1.166 16 4.815 4.932 102 6.419 123.383 191 Total Capital Expenditure 65.139 45.864 70 63.149 77.202 122 64.580 (85.000) 512 Financing (20.541) 19.719 96 (19.799) (48.056) 243 (16.608) 175.296 143 Budget Size 119.391 92.303 77 112.694 123.761 110 122.985 15 MEPB:Q4 & Full Year Budget Performance Appraisal

Comparative Analysis of Q4 Budget Performance from Y2010 to Y2012 Oct Dec. 160 140 120 100 80 Series1 60 40 20 0 Y2010 Y2011 Y2012 MEPB:Q4 & Full Year Budget Performance Appraisal 16

Q4 2012 Vs Q4 2011 (Oct. Dec.) Budget Performance for the 4th Quarter, Y2012 was 143%/N175.296bn as against 110%/N123.761bn same period in 2011; N51.535bn more in absolute terms. Total Revenue (TR) recorded N89.243bn/89% compared to N70.773bn/ 80% for same period in Y2011 Recurrent Expenditure was N51.913bn/89% as against N46.559bn/94% in 2011 Recurrent Surplus was N37.330bn/ 90% as against N24.214bn/63% same period Y2011 Capital Receipts performed only N1.053bn/16% against N4.932bn/102% same period in 2011 Capital Expenditure performed N123.383bn/191% compared to N77.202bn/122% same period in Y2011 17 MEPB:Q4 & Full Year Budget Performance Appraisal

Full Year Budget Performance Highlights (Jan Full Year Budget Performance Highlights (Jan- -Dec) Dec) Details Prov. Jan-Dec. Actual Jan-Dec. Performance % Total Ordinary Revenue 399.834 340.637 85 Total Recurrent Expenditure 233.620 207.366 89 Total Recurrent Surplus 166.214 133.271 80 Total Capital Receipts 25.677 9.613 37 Total Capital Expenditure 258.321 232.098 90 Financing (66.430) (89.214) 134 Budget Size 491.941 439.464 89 18 MEPB:Q4 & Full Year Budget Performance Appraisal

Q1 Q4 Y2012 Revenue performance Q1 Q2 Q3 Q4 Provision Jan Mar. Nbn Actual Jan Mar. Nbn Perf % Provision Apr June Nbn Actual Apr June Nbn Perf % Provision July Sept. Nbn Actual July- Sept. Nbn Perf % Provision Oct Dec Nbn Actual Oct Dec Nbn Perf % Total Revenue (A+B) 99.959 85.244 85 99.959 85.177 85 99.959 80.057 80 99.959 89.243 89 A Internally Generated Revenue 72.419 55.824 77 72.419 57.876 80 72.419 51.203 71 72.419 52.784 73 I. L/S Internal Revenue Services (LIRS) 52.750 43.111 82 52.750 48.885 93 52.750 42.955 81 52.750 37.745 72 II. Internally Generated Revenue (Others) 10.369 5.692 55 10.369 5.267 51 10.369 3.575 34 10.369 12.900 124 III. Dedicated Revenue 7.110 3.589 50 7.110 2.392 34 7.110 2.212 31 7.110 1.575 22 IV Extra Ordinary Revenue 2.191 3.432 157 2.191 1.332 61 2.191 2.461 112 2.191 0.564 26 B. Federal Transfers 27.540 29.420 107 27.540 27.301 99 27.540 28.854 105 27.540 36.459 132 I. Statutory Allocation 14.416 14.516 101 14.416 12.195 85 14.416 14.027 97 14.416 19.901 138 II. Value Added Tax 13.124 14.904 114 13.124 15.106 115 13.124 14.827 113 13.124 16.558 126 C. Capital Receipts 6.419 2.308 36 6.419 3.216 50 6.419 1.488 23 6.419 1.053 16 MEPB:Q4 & Full Year Budget Performance Appraisal 19

Q1 Q4 Y2012 Revenue Performance 90 88 86 84 82 Series1 80 78 76 74 Q1 Q2 Q3 Q4 MEPB:Q4 & Full Year Budget Performance Appraisal 20

Y2012 Full Year Revenue Performance (Jan. Y2012 Full Year Revenue Performance (Jan. Dec.) Dec.) Y 12 Provision Jan. Dec Nbn Y 12 Actual Jan.- Dec. Nbn Performance % Total Revenue (A+B) 399.834 340.637 85 A Internally Generated Revenue 289.676 218.459 75 I. L/S Internal Revenue Services (LIRS) 211.000 166.516 79 II. Internally Generated Revenue (Others) 41.475 31.946 77 III. Dedicated Revenue 28.439 11.991 42 IV Extra Ordinary Revenue 8.762 8.006 91 B. Federal Transfers 110.158 122.178 111 57.662 60.783 105 I. Statutory Allocation II. Value Added Tax 52.496 61.395 117 C. Capital Receipts 25.677 9.613 37 MEPB:Q4 & Full Year Budget Performance Appraisal 21

Y2010 - Y2012 Revenue Performance ` Y2010 Y2011 Y2012 Prov. Jan. Dec. Nbn Actual Jan. Dec. Nbn Prov. Jan. Dec. Nbn Actual Jan. Dec. Nbn Prov. Jan. Dec. Nbn Actual Jan. Dec. Nbn Perf. % Perf. % Perf. % Total Revenue (A+B) 322.027 279.067 87 352.320 312.037 89 399.834 340.637 85 A Internally Generated Revenue 234.027 183.795 79 262.620 197.328 75 289.676 218.459 75 I. L/S Internal Revenue Services (LIRS) 170.000 144.191 85 192.000 167.896 87 211.000 166.516 79 II. Internally Generated Revenue (Others) 39.000 24.372 62 36.520 17.152 47 41.475 31.946 77 III. Dedicated Revenue 20.027 10.762 54 26.100 6.915 26 28.439 11.991 42 IV Extra Ordinary Revenue 5.000 4.470 89 8.000 5.365 67 8.762 8.006 91 B. Federal Transfers 88.000 95.272 108 89.700 114.709 128 110.158 122.178 111 I. Statutory Allocation 45.000 47.986 107 46.000 57.690 125 57.662 60.783 105 II. Value Added Tax 43.000 47.286 110 43.700 57.019 130 52.496 61.395 117 C. Capital Receipts 28.372 12.087 43 19.261 9.313 48 25.677 9.613 37 MEPB:Q4 & Full Year Budget Performance Appraisal 22

Revenue Appraisal (Jan Dec.) Total Revenue (TR) performed N340.637bn representing 85% of target compared to 89%/N312.037bn for Y2011, though N28.600bn more in absolute terms Internally Generated Revenue (IGR) was N218.459bn/75%, against N197.328bn/75% during same period in Y2011; and 64.13% of TR vs. 63.24% in Y2011 Dedicated Revenue made N11.991bn representing 5.49% of IGR and 3.52% of the TR LIRS performance of N166.516bn/79% accounted for 76.22% of the IGR and 48.88% of the TR, compared to N167.896bn/85% of IGR and 53.81% of TR in Y2011; N1.38bn less in absolute terms 23 MEPB:Q4 & Full Year Budget Performance Appraisal

Revenue Appraisal (Jan Dec.) 2/ Capital Receipts performed at N9.613bn/37% of target; Federal Transfers contributed N122.178bn representing 35.87% of the TR; Statutory Allocation (SA) contributed N60.783bn/105%,while VAT performed at N61.395bn/117% of provision. Note that for the second consecutive quarter in Y2012, VAT contributed more than SA in absolute terms Extra Ordinary Revenue performed better due to contribution of LSG/LCDAs on refuse and utility payment MEPB:Q4 & Full Year Budget Performance Appraisal 24

Q1 Q4 Appraisal of Capital Receipts; Q1 Q2 Q3 Q4 Details Provision N (billion) Actual N (billion) % Provision N (billion) Actual N (billion) % Provision N (billion) Actual N (billion) % Provision N (billion) Actual N (billion) % Perf. Perf. Perf. Perf. Grants (Donor Agencies) 0.867 0.042 5 0.867 1.332 154 0.867 0.182 21 0.867 1.053 121 Investment Income 0.072 - - 0.072 - - 0.072 - - 0.072 - - Other Capital Receipts 5.480 2.266 41 5.480 1.884 34 5.480 1.306 24 5.480 - - TOTAL CAPITAL RECEIPTS 6.419 2.308 36 6.419 3.216 50 6.419 1.488 23 6.419 1.053 16 25 MEPB:Q4 & Full Year Budget Performance Appraisal

Appraisal of Capital Receipts; Jan.Dec. 2012 Details Provision N (billion) Actual N (billion) % Performance 3.468 Grants (Donor Agencies) 2.609 75 0.289 Investment Income 0.144 50 21.920 Other Capital Receipts 6.860 31 25.677 TOTAL CAPITAL RECEIPTS 9.613 37 26 MEPB:Q4 & Full Year Budget Performance Appraisal

Y2010 2012 Capital Receipts Performance 2010 2011 2012 Details Provision N (billion) Actual N (billion) % Provision N (billion) Actual N (billion) % Provision N (billion) Actual N (billion) % Perf. Perf. Perf. Grants (Donor Agencies) 5.021 1.790 36 4.194 0.876 21 3.468 2.609 75 Investment Income 0.250 0.215 86 0.275 0.221 80 289 144 50 Other Capital Receipts 23.101 10.082 44 14.792 8.216 56 21.920 6.860 31 TOTAL CAPITAL RECEIPTS 28.372 12.087 43 19.261 9.313 48 25.677 9.613 37 27 MEPB:Q4 & Full Year Budget Performance Appraisal

Capital Receipts Appraisal Capital Receipts Appraisal Cumulative Capital Receipts performed below expectation at N9.613bn/37%, compared to same period in Y2011 which was N9.313bn/48% Other Capital Receipts (Dedicated) performed at N6.860bn/31% of projection Responsible Agencies are: Waterfront Infrastructure Development N398,495,607/20% Housing N732,959,750/8% Physical Planning & Urban Development N1,246,742,536/58% New Towns Development Authority N1,959,752,222/28% Source: Returns forwarded to MEPB by MDAs as at Nov.2012 28 MEPB:Q4 & Full Year Budget Performance Appraisal

RECURRENT EXPENDITURE RECURRENT EXPENDITURE FROM Y2008 TO Y2012 FROM Y2008 TO Y2012 YEAR PROVISION (N bn) ACTUAL (N bn) Performance % 2008 146.752 125.581 86 2009 150.464 116.296 77 2010 178.015 156.148 88 2011 198.182 183.845 93 2012 233.620 207.366 89 MEPB:Q4 & Full Year Budget Performance Appraisal 29

Q1 Q1 Q4 Y2012 Q4 Y2012 Personnel Costs Performance Q1 Q2 Q3 Q4 Detail Provision (Nbn) Actual Nbn % Provision (Nbn) Actual Nbn % Provision (Nbn) Actual Nbn % Provision (Nbn) Actual Nbn % Perf. Perf. Perf. Perf. Total Personnel Cost 20.406 19.046 93 20.406 17.793 87 20.406 20.237 99 20.406 19.217 94 16.574 16.275 98 16.574 16.125 97 16.574 16.590 100 16.574 16.447 99 Personnel Costs (including Consolidated) NYSC/Interns(Allowances) 0.075 0.064 85 0.075 0.073 97 0.075 0.067 89 0.075 0.087 116 Other Personnel Costs (Contingency) 0.167 - - 0.167 - - 0.167 - - 0.167 - - 7.5% Govt. Share of Contributory Pensions 1.201 0.728 61 1.201 0.722 60 1.201 0.729 61 1.201 0.731 61 30 MEPB:Q4 & Full Year Budget Performance Appraisal

Q1 Q1 Q4 Y2012 Q4 Y2012 Personnel Costs Performance .2 Q1 Q2 Q3 Q4 Detail Provision (Nbn) Actual Nbn % Provision (Nbn) Actual Nbn % Perf. Provision (Nbn) Actual Nbn % Provision (Nbn) Actual Nbn % Perf. Perf. Perf. 5% Pension Redemption Bond Fund 0.801 0.813 102 0.801 0.539 67 0.801 1.098 137 0.801 0.822 103 Pension & Gratuities(Civil Servants, Teachers) 1.175 0.776 66 1.175 0.261 22 1.175 1.359 116 1.175 0.728 62 Pensions & Gratuities(Lagos State High Court) 0.063 0.045 71 0.063 0.015 24 0.063 0.065 103 0.063 0.045 71 Pensions & Gratuities(Others) 0.050 0.045 90 0.050 - - 0.050 0.029 58 0.050 0.057 114 Pension Sinking Fund 0.300 0.300 100 0.300 0.300 100 0.300 0.300 100 0.300 0.300 100 31 MEPB:Q4 & Full Year Budget Performance Appraisal

Full Year Full Year Personnel Costs Performance (Jan-Dec.12) Detail Provision (Nbn) Actual Nbn % Performance 81.625 76.550 94 Total Personnel Cost Personnel Costs (including Consolidated) NYSC/Interns(Allowances) 66.296 65.437 99 0.300 0.291 97 0.669 - - Other Personnel Costs (Contingency) 4.804 2.910 61 7.5% Govt. Share of Contributory Pensions 32 MEPB:Q4 & Full Year Budget Performance Appraisal

Full Year Personnel Costs Performance (Jan-Dec.12) ...2/ Provision (Nbn) Actual Nbn % Performance 3.203 3.272 102 5% Pension Redemption Bond Fund Pension & Gratuities(Civil Servants, Teachers) Pensions & Gratuities(Lagos State High Court) Pensions & Gratuities(Others) 4.700 3.124 66 0.253 0.185 73 0.200 0.131 66 1.200 1.200 100 Pension Sinking Fund MEPB:Q4 & Full Year Budget Performance Appraisal 33

Y2010 Y2010 2012 2012 Personnel Cost Comparison Comparison Y2010 Y2011 Y2012 Detail Provision (Nbn) Actual Nbn % Perf. Provision (Nbn) Actual Nbn % Provision (Nbn) Actual Nbn % Perf. Perf. 81.625 76.550 94 Total Personnel Cost 55.079 53.947 98 71.429 73.995 104 66.296 65.437 99 46.816 42.215 90.17 56.790 61.740 109 Personnel Costs (including Consolidated) 0.300 0.291 97 NYSC/Interns(Allowances) 0.360 - - 0.360 0.189 53 0.669 - - Other Personnel Costs (Contingency) 0.828 0.827 100 2.003 1.186 59 1.934 1.899 89 3.010 2.773 92 4.804 2.910 61 7.5% Govt. Share of Contributory Pensions 34 MEPB:Q4 & Full Year Budget Performance Appraisal

Y2010 Y2010 2012 2012 Personnel Cost Comparison Comparison 2/ Y2010 Y2011 Y2012 Detail Provision (Nbn) Actual Nbn % Perf. Provision (Nbn) Actual Nbn % Perf. Provision (Nbn) Actual Nbn % Perf. 5% Pension Redemption Bond Fund 1.256 2.648 211 2.006 3.070 153 3.203 3.272 102 Pension & Gratuities(Civil Servants, Teachers) 2.500 4.857 194 5.000 3.187 64 4.700 3.124 66 Pensions & Gratuities(Lagos State High Court) 0.185 0.501 271 0.368 0.137 37 0.253 0.185 73 Pensions & Gratuities(Others) 0.200 - 0 0.200 0.022 11 0.200 0.131 66 Pension Sinking Fund 1.000 1.000 100 1.200 1.200 100 1.200 1.200 100 35 MEPB:Q4 & Full Year Budget Performance Appraisal

Personnel Cost Performance Appraisal (Jan Personnel Cost Performance Appraisal (Jan Dec.) Dec.) Total Personnel Cost (TPC) was N76.550bn recording an increase of N2.555bn over the same period in Y2011 at N73.995bn TPC gulped N76.550bn/35.04% of IGR and 22.47% of TR and 36.91% of Total Recurrent Expenditure, marginally exceeding some of the key wage cost triggers. MEPB:Q4 & Full Year Budget Performance Appraisal 36

Q1 Q1- -Q4 Y2012 Overhead Costs Performance Q4 Y2012 Overhead Costs Performance Q1 Q2 Q3 Q4 Provision Budget (Nbn) Actual (Nbn) % Provision Budget (Nbn) Actual (Nbn) % Provision Budget (Nbn) Actual (Nbn) % Provision Budget (Nbn) Actual (Nbn) % Perf Perf Perf Perf Total Overhead Costs 37.999 31.690 83 37.999 34.065 90 37.999 32.365 35 37.999 32.696 86 Overhead Costs 21.396 23.641 110 21.396 25.733 120 21.396 27.380 128 21.396 8.138 38 Dedicated Expenditure 6.399 1.456 23 6.399 1.961 31 6.399 1.068 17 6.399 6.009 94 Subvention 7.230 3.600 50 7.230 2.629 36 7.230 3.357 46 7.230 14.688 203 Staff Housing Fund 0.013 - - 0.013 - - 0.013 - - 0.013 0.050 400 External Debt Charges 0.263 0.157 60 0.263 0.195 74 0.263 0.191 73 0.263 0.264 101 Internal Debt Charges 1.740 2.836 163 1.740 3.547 204 1.740 0.369 21 1.740 0.156 9 Debt Charges (Bond) 0.961 - - 0.961 - - 0.961 - - 0.961 3.391 353 MEPB:Q4 & Full Year Budget Performance Appraisal 37

Overhead Cost Full Year (Jan. Dec12) Provision Budget (Nbn) Actual (Nbn) % Performance 151.995 85.582 130.816 84.892 86 99 Total Overhead Costs Overhead Costs 25.595 28.918 0.050 1.050 6.958 3.842 10.494 24.274 0.050 0.807 6.908 3.391 41 84 100 77 99 88 Dedicated Expenditure Subvention Staff Housing Fund External Debt Charges Internal Debt Charges Debt Charges (Bond) MEPB:Q4 & Full Year Budget Performance Appraisal 38

Y2010 Y2010 - -2012 Overhead Costs Performance 2012 Overhead Costs Performance 2010 2011 Y2012 Provision Budget (Nbn) Actual (Nbn) % Provision Budget (Nbn) Actual (Nbn) % Provision Budget (Nbn) Actual (Nbn) % Perform ance Perform ance Perfor mance Total Overhead Costs 122.936 102.201 83 126.753 109.850 87 151.995 130.816 86 Overhead Costs 69.199 68.996 99.7 69.037 80.338 116 85.582 84.892 99 Dedicated Expenditure 17.027 15.613 92 22.191 3.314 15 25.595 10.494 41 Subvention 19.027 10.988 58 23.475 17.612 75 28.918 24.274 84 Staff Housing Fund - - - 0.050 - - 0.050 0.050 100 External Debt Charges 1.220 - - 1.050 0.552 53 1.050 0.807 77 Internal Debt Charges 15.263 5.185 34 6.958 8.034 115 6.958 6.908 99 Debt Charges (Bond) 1.200 1.419 118 3.992 0 0 3.842 3.391 88 MEPB:Q4 & Full Year Budget Performance Appraisal 39

Overhead Cost Appraisal Overhead Cost Appraisal Total Overhead Cost performed N130.816bn/86%; recording 63.08% of the Total Recurrent Expenditure and 59.88% of IGR compared with N109.850bn/87%, recording 59.75 % of Total Recurrent Expenditure and 55.67 % of IGR in Y2011 Subventions performed at N24.274bn/84% as against N17.612bn/75% in Y2011 MEPB:Q4 & Full Year Budget Performance Appraisal 40

Q1-Q4 Capital Expenditure Performance Q1 Q2 Q3 Q4 Details Budget N (billion) Actual N (billion) % Budget N (billion) Actual N (billion) % Budget N (billion) Actual N (billion) % Budget N (billion) Actual N (billion) % Perf Perf Perf Perf Core Capital 56.092 27.061 48 56.092 47.072 84 56.092 25.553 46 56.092 119.679 213 Capital Development 5.480 0.624 11 5.480 2.157 39 5.480 0.389 7 5.480 0.454 8 Risk Retention Fund 0.025 - - 0.025 - - 0.025 - - 0.025 0.100 400 Special Expenditure 1.250 0.870 70 1.250 1.162 93 1.250 1.646 132 1.250 1.295 104 Grants from Donor Agencies 0.867 0.042 5 0.867 1.332 154 0.867 0.182 21 0.867 1.053 121 Counterpart Fund 0.866 0.398 46 0.866 0.177 20 0.866 0.050 6 0.866 0.802 93 Total 64.580 28.995 45 64.580 51.900 80 64.580 27.820 43 64.580 123.383 191 MEPB:Q4 & Full Year Budget Performance Appraisal 41

Capital Expenditure Full Year Performance(Jan. Dec.12) Details Budget N (billion) Actual N (billion) % Performance Core Capital 224.368 219.365 98 Capital Development 21.920 3.624 17 Risk Retention Fund 0.100 0.100 100 Special Expenditure 5.000 4.973 99 Grants from Donor Agencies 3.468 2.609 75 Counterpart Fund 3.465 1.427 41 258.368 232.098 90 Total MEPB:Q4 & Full Year Budget Performance Appraisal 42

Y2010-12 Capital Expenditure Performance 2010 2011 2012 Details Budget N (billion) Actual N (billion) % Budget N (billion) Actual N (billion) % Budget N (billion) Actual N (billion) % Perf Perf Perf Core Capital 191.585 156.743 82 223.071 152.649 68 224.368 219.365 98 Capital Development 24.204 3.269 14 14.242 1.650 12 21.920 3.624 17 - - - Risk Retention Fund 0.200 0 0 0.100 0.100 100 Special Expenditure 7.500 6.801 91 6.267 3.707 59 5.000 4.973 99 Grants from Donor Agencies 5.021 1.790 36 4.194 0.876 21 3.468 2.609 75 Counterpart Fund 5.246 4.506 86 4.619 4.326 94 3.465 1.427 41 Total 233.556 173.109 74 252.593 163.208 65 258.368 232.098 90 MEPB:Q4 & Full Year Budget Performance Appraisal 43

Capital Expenditure Appraisal Capital Expenditure Appraisal Cumulative performance was N232.098bn/90% as against N163.208bn/65% the same period in Y2011; representing our best performance since this administration As at end of Q4 2012, the cumulative Capex: Recurrent ratio was 53:47 achieving the set target and better than 47:53 in Y2011 Resolute action is required to maintain this trend by all concerned in Y2013 44 MEPB:Q4 & Full Year Budget Performance Appraisal

CAPITAL /RECURRENT RATIO PERFORMANCE CAPITAL /RECURRENT RATIO PERFORMANCE FROM Y2008 TO Y2012 FROM Y2008 TO Y2012 YEAR BUDGET PROJECTION 64:36 63:37 57:43 56:44 53:47 ACTUAL PERFORMANCE 56:44 60:40 53:47 47:53 53:47 2008 2009 2010 2011 2012 MEPB:Q4 & Full Year Budget Performance Appraisal 45

Full Year Performance (Jan-Dec.) Y2012 Financing Activities Approved Budget Nbn 66.430 66.430 145.593 Revised Budget Nbn 66.430 66.430 145.593 % Actual Nbn 89.214 73.882 139.227 Detail Perf. 134 111 96 FINANCING REQUIREMENT FINANCING FINANCING (SOURCES) External Loans 30.000 27.664 37.929 50.000 79.163 - - - (i) DPO 27.664 37.929 80.000 79.163 21.298 37.929 80.000 65.345 77 100 100 83 (ii) Others Internal Loans Bond Issue REPAYMENTS External Loans (Principal Repayments) Internal Loan (Principal Repayments) Consolidated Debt Service Accounts 0.613 0.613 0.735 120 36.811 36.811 32.930 89 41.739 41.739 31.680 76 MEPB:Q4 & Full Year Budget Performance Appraisal 46

Y2012 Financing Activities contd Financing Activities as at the end of December , 2012 showed a net deficit of N89.2bn but the State borrowed a net amount of N73.882bn, implying that cash/bank balances totaling N15.3bn was utilized in 2012 Ministry of Finance / Debt Management Office was able to conclude the bond issue to meet the expenditure requirement of Government. This underscores the need for DMO/MOF to keep faith with the financing plan included in the Budget for 2013 MEPB:Q4 & Full Year Budget Performance Appraisal 47

TOTAL VALUE OF PAYMENT CERTIFICATES FOR THE PERIOD Oct Dec., 2012 [BY SECTOR] S/ N SECTOR No of Pc Total Contract Sum Advance / Previous Payment Amount Due General Public Services 1 14 236,801,262.42 384,927,243.48 132,577,576.30 Education 2 89 3,318,933,453.86 1,904,388,408.64 759,617,797.18 Environmental Protection 3 28 9,023,670,416.42 6,005,650,585.87 1,352,428,246.99 Economic Affairs 4 5 77 112 44,981,126,549.63 9,665,826,167.22 28,317,974,730.99 4,871,029,137.97 16,029,835,715.58 2,064,824,236.11 Housing Community Amenities Health 6 3 455,500,000.00 263,898,470.00 170,916,030.00 TOTAL 323 67,681,857,849.55 42,113,868,576.95 20,510,199,602.14 MEPB:Q4 & Full Year Budget Performance Appraisal 48

SUMMARY OF RETURNED PAYMENT CERTIFICATES FOR THE PERIOD OF OCT-Dec., 2012. S/N SECTOR No of Pc Total Contract Sum Advance / Previous Payment Amount Due 250,442,493.60 169,138,187.57 77,920,553.98 1 Education 7 176,269,443.54 114,759,539.60 50,362,225.34 2 Environment [Direct Labour] Housing & Community Ammenites Economic Affairs 6 247,170,065.38 183,120,006.98 73,132,515.75 3 5 685,000,000.00 274,000,000.00 173,039,844.63 4 1 TOTAL 19 1,358,882,002.52 741,017,734.15 374,455,139.70 5 MEPB:Q4 & Full Year Budget Performance Appraisal 49

COMPARATIVE ANALYSIS OF AMOUNT DUE BY SECTORS BETWEEN Q4-2011 & Q4-2012. S/N SECTOR Amount Due 2011 Amount Due 2012 1 General Public Services 903,653,912.93 132,577,576.30 2 Education 663,162,460.26 509,068,904.49 759,617,796.75 1,352,428,246.99 3 Environmental Protection 4 Economic Affairs 7,673,463,444.01 2,953,819.50 1,048,613,477.39 16,029,835,715.58 170,916,030.00 2,064,824,236.11 5 Health 6 Housing Community Amenities 7 Public Order & Safety 34,862,750.00 295,307,241.99 NIL NIL 8 Social Protection TOTAL 11,131,086,010.57 20,510,199,601.73 MEPB:Q4 & Full Year Budget Performance Appraisal 50