Lagos Proposes 62% Of N1.168tr 2020 Budget For Capital Expenses

Lagos Proposes 62% Of N1.168tr 2020 Budget For Capital Expenses


Post Views: 147 •Public Infrastructure To Gulp N115bn Governor Babajide Sanwo-Olu, on Friday, proposed a budget of N1.168tr for the 2020 fiscal year t...

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•Public Infrastructure To Gulp N115bn
Governor Babajide Sanwo-Olu, on Friday, proposed a budget of N1.168tr for the 2020 fiscal year to the Lagos State House of Assembly, announcing plans to further expand her economy through aggressive investments in critical sectors like physical infrastructure, environment, human capital, and security.
The proposal, which includes a provision for the new minimum wage, he explained, will be funded primarily through a projected Internally Generated Revenue (IGR) of N1.071tr, while the N97.53bn deficit will be financed through internal and external loans.
According to a breakdown of the budget tagged “Awakening to a Greater Lagos,” Sanwo-Olu earmarked N723.75bn, representing 62% of total spending for capital expenditure, leaving N444.81bn or 38% for recurrent spending. Sanwo-Olu said the proposed budget is “unique”, because its details reflect the wishes of residents, following series of consultations and feedback from stakeholders across senatorial districts.
The governor assured residents of transparency and accountability in the implementation of the budget, pointing out that there would be strict performance mechanism to drive compliance and measure the progress of the budget at the execution stage.
“The 2020 Budget will be supported by a Performance Management System that will ensure that, by December 2020, we shall achieve an optimal budget implementation when compared with previous years. This is in line with our commitment to transparency and accountability in the management of public finances,” he assured.
A further breakdown showed that an estimated N167.81bn or 22.02% of the total revenue will go for personnel costs and other staff-related expenses, which he said is within the acceptable wage policy benchmarks 25% staff overheads in the budget.
The proposed budget, he believes, would help Lagos achieve a sustainable social investment and scale up private sector-led economic growth through investment in infrastructure and security. He said it would also improve civic engagement in governance and foster partnership with the Federal Government and the civil society.
Explaining why his administration will be earmarking huge funds to the environment and public infrastructure, Governor Sanwo-Olu said Lagos had been facing combined threats from population explosion and climate change.
In his words: “Lagos faces an existential threat, arising from the interplay of demographic and climate change. Lagos will continue to be a magnet for multitudes within and outside Nigeria, in search of jobs and economic prosperity. These levels of migration put a phenomenal strain on the physical and fiscal resources of the state.
“This budget seeks to aggressively invest in and develop our education, health, and other physical infrastructure sectors. As of September 2019, our capital expenditure on works and infrastructure was just N31bn, which is less compared with N78bn proposed in the current year. It is our intention to spend N115bn on physical infrastructure in 2020.
“In response to the perennial challenges of flooding in the metropolis, we have to triple the capital budget provision to tackle these observed problems from N3bn in 2019 to N9bn in 2020. We are embarking on massive desilting of major drain systems across the State next year.”
By sector, Lagos plans to spend N48bn on education and technology, representing a 60% increase in capital allocation to the Ministry of Education; followed by the N33bn earmarked for healthcare, including a proposal to revamp and re-equip over 350 Primary Health Centres.
Continuing, the governor said N11.8bn has been provided “as counterpart funds in preparation for various social impact schemes. In addition, we have made provisions for N7.1bn this year, to provide for industrial hubs, parks, graduate internship programs, and virtual markets for artisans. This is in support of Micro, Small and Medium Enterprises (MSMEs) which are the engines for both economic and employment growth.”
Reviewing the performance of the 2019 Appropriation Bill, which he signed into law in June shortly after he assumed office, Sanwo-Olu said his administration embarked on strict implementation of the budget and achieved 69% efficiency at the end of September.
He said his administration completed critical projects that directly impacted residents, including two Maternal and Child Care Centres (MCCs) in Eti-Osa and Alimosho areas, and 492-flat Lateef Jakande Housing Estate in Igando.
The governor said several other capital projects captured in the 2019 budget, including 31 arterial roads in Ojokoro/Ijaiye area, a High Court and Magistrates Court complex in Eti-Osa Local Government Area, and a Police Command Complex in Ojo Local Government Area will be completed.
Sanwo-Olu observed that the approved re-ordering of the 2019 budget by the legislature gave the administration an opportunity to raise N250bn needed to address critical infrastructure needs, including rehabilitation of public schools, ongoing construction of the Lagos–Badagry Expressway, Agege–Pen Cinema Overhead Bridge, Agric–Isawo Road, Bola Ahmed Tinubu–Igbogbo Road, and an ongoing road rehabilitation by Lagos Public Works.
He added that the loan will also enable his administration to start the desilting of drain systems, provision of security and emergency hardware, light rail infrastructure, and construction of a General Hospital in Ojo, which is to be fitted with a Spinal and Neurology Unit.
Sanwo-Olu reiterated that his administration’s development agenda, known as Project T.H.E.M.E.S, was designed to address major challenges facing the State and create a city that would work for the citizens. He said his administration was ready to transform Lagos by rethinking projects that will improve the wellbeing of the residents.
Commenting, the Speaker, Rt. Hon. Mudashiru Obasa, said Sanwo-Olu’s activities since assuming office have re-assured Lagosians about his zeal, desire, and passion to fix the problems he inherited from the last administration.
He, therefore, expressed the belief that the 2020 budget will make life worth living for residents of Lagos, assuring that the Assembly would ensure speedy passage of the budget as a “New Year” gift for the people.