…As Speaker charges Gov. on rail, water transport, blasts critics of Assembly over Ambode

Story By Patrick Okohue, Benjamin Omoike and Alade Tasma

Governor Babajide Sanwo-Olu of Lagos on Friday presented a proposed budget size of N1.168 trillion, tagged ‘Y2020 Budget of Awakening To A Greater Lagos’, to the Lagos State House of Assembly, LAHA.
According to the governor in his presentation, the budget, which is fully consistent with the state’s THEMES agenda, gives priority to the completion of ongoing projects in the state, especially in the education and health sectors.

“The Proposed Budget Size for Year 2020 is N1.168 Trillion; to be funded by a projected Total Revenue of N1.071 Trillion, and a deficit amounting to N97.53 Billion. This budget size is higher than the 2019 budget by 34 per cent. Capital expenditure amounts to N723.75 Billion, while the Recurrent Expenditure is N444.81 Billion giving a 62:38 capital to recurrent ratio. 

“This, in our view, is strong for development. We have placed an increased focus on wealth creation where we will take deliberate steps in courting a partnership between our people and various development institutions. In line with this, we have provided N11.8bn 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 programmes and virtual markets for artisans. This is in support for Micro, Small and Medium enterprises which are the engines for both economic and employment growth.”

The Governor equally proposed that a total of N167.81 Billion of the Recurrent Expenditure shall be applied towards personnel costs and other staff-related expenses. This, he said, represents 22.02 per cent of the proposed Total Revenue, which is within the acceptable wage policy of 25 per cent of Total Revenue, and includes a provision for the new minimum wage. 

Sanwo-Olu added that the budget deficit of N97.53 Billion will be financed by both internal and external loans. He said since revenue generation was the spine of any budget, this budget would support investment in the state’s revenue generating agencies.

“As mentioned earlier, Mr. Speaker, this budget seeks to aggressively invest in and develop our education, health and other physical infrastructure sectors. Although our capital spend on works and infrastructure was just N31 Billion Naira as at September 2019, as against the 2019 budget proposal of N78 Billion, it is our intention to spend N115 Billion in 2020.

“Education will see a significantly increased capital budgetary allocation of N48 Billion Naira, an increase of 60 per cent over the 2019 provision of N30 Billion. We must improve the standard and relevance of our education outcomes to our industries. We will work together with our Local governments to strengthen early child education and teachers training/administration, leveraging technology.

“Similarly, in healthcare, we have provided for a capital expenditure of N33 Billion, compared to the 2019 budget proposal of N21 Billion. We will ensure that our primary health careinstitutions remain active and attractive to the primary health care needs of our people. Lagos belongs to us all; we will continue therefore to drive partnerships with the private sector in promoting health services within our institutions. Given the perennial challenges of flooding in the metropolis, we have tripled the capital budget provision to tackle this from N3 Billion in 2019 to N9 in 2020,” he said.

“It is time to imagine a new Lagos – A “Greater Lagos”. It is time to create and realise new and audacious dreams, targets and goals. We have to rethink inter-communal relationships.We have to rethink infrastructural development. We have to rethink our transport systems. We have to rethink our well-being. We have to move from glib statements aboutLagos as a center of excellence. Lagos has to be truly excellent in something. Something positive, remarkable and admirable. In other words, a Greater Lagos. It is on this plank that the “2020 Budget of Awakening To A Greater Lagos” is premised and I hereby present it for your kind consideration andapproval,” he concluded.

Meanwhile, Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, has charged Governor  Sanwoolu to look into the direction of water and rail as means of effective transportation system in the state. 

The Speaker tasked the Governor while giving his remarks at the presentation of the budget. According to the Speaker, “There is the need to focus more attention on rail to connect the entire Lagos. A rail from Ogun State boundary down to Lekki Epe side, a rail from Ikorodu to also same area should be urgently considered. And the ones under construction must be speedily completed. No amount of road patching, rehabilitations and constructions will really solve our transportation problem judging by the influx of people into Lagos on daily basis. With money or not, we have to start doing something.

“At the same time, more still needs to be done about water transportation. Ilo rivers running from Sango links Alimosho, Ojo, Amuwo back to CMS. Also, Odo Iya Alaro runs up to Ikorodu. This might sound like a tall order. But we should start from somewhere. Dubai did not start in a day. They laid the foundation and continue building on it. Now, it is an envy of all,” the Speaker stated. 

Reacting to criticisms of the House over Its stand on the immediate past Governor of the State, Akinwumi Ambode, the Lagos chief lawmaker condemned the action of those he called “faceless group” for unnecessarily blackmailing the House. He accused them of bias and being unreasonable.

“People like one Olu Fajana with his faceless group calling themselves the Legislative Probity and Accountability, LPA, led a protest to this House. They used the medium to blackmail the House instead of reasoning with us to join hands in moving the state forward, by avoiding the treasury of the state from being touched unconstitutionally. With this, it is common knowledge that the last administration employed blackmailing and harassment to witch-hunt and deprive the House from performing its duties appropriately.”

The Speaker, however, promised that the House will never be deterred from doing its work and will be ready to collaborate and support the administration and to ensure that the government’s electoral promises are achieved and delivered promptly.   

Obasa further charged the Governor to be bold in laying a solid foundation to be built on by successive administrations. “It is high time to come up with innovative ideas and strategies to bring about change to the state with the aim of taking it to the next level.”
The Speaker commended the Governor’s capability in maintaining a track record of resourceful consistency in the state. 

“Mr. Governor, your actions so far have shown the zeal, desire and passion in you to get things done, to fix what has been left undone and to move the state forward. Hence, we believe that the content of the budget will serve this purpose in making life worthy of living for our people in Lagos State. As is evident, the Y2020 Appropriation Bill is significant in that it is the first budget proposal to be presented by Mr Governor. This will give him the opportunity to encapsulate his vision and mission for us all as the budget will lay the foundation for this. For this singular reason, we are all hopeful and expectant that this coming year will witness more of democracy dividends for betterment of Lagos and Lagosians,” the State chief lawmaker stated. 

The Speaker promised to make the passage of the budget a new year gift to the people of the state.