SANWO-OLU PRESENTS N1.168TRN Y2020 BUDGET ESTIMATES TO LAGOS ASSEMBLY.

A budget estimate of 1.168 Trillion Naira to be funded through a projected Total Revenue of 1.071 Trillion Naira for the Year 2020 has been presented before the Lagos Assembly Lawmakers by the State Governor, Mr Babajide Sanwo-Olu.

The budget tagged “Budget of Awakening to a Greater Lagos” according to the Governor, intends to attract private sector investments to the state economy by creating an enabling environment; aggressively develop, upgrade and maintain infrastructure; invest in human capital development, i.e. education and healthcare; facilitate sustainable social investment and enterprise; improve capacity to collect due revenues as efficiently as possible; improve civic participation in governance, and automate public services and engagement.

He further stated that the Y2020 budget would build impactful partnerships with the Federal Government, other states, development partners and civil society; and improve the quality of the environment and our public spaces generally.

While highlighting some unique components about the proposal, Sanwo-Olu noted that in putting the budget together, several consultations were made across the three senatorial districts, in concurrence with memoranda and feedback from stakeholders’ meetings organized by the State House Of Assembly that were considered, and the support of a Performance Management System that would ensure an optimal implementation is achieved by December 2020, in comparison with previous years.

He also explained that the budget size is higher than the 2019 appropriation by 34% capital expenditure amounts to 723.75 Billion Naira and the Recurrent Expenditure is 444.81 Billion Naira giving a 62:38 capital to recurrent ratio.

This increment is in line with administration commitment to transparency and accountability in the management of public finances.

“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 programs 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.”

“It is equally proposed that a total of 167.81 Billion Naira of the Recurrent Expenditure shall be applied towards personnel costs and other staff-related expenses. This represents 22.02% of the proposed Total Revenue, which is within the acceptable wage policy of 25% of Total Revenue, and includes a provision for the new minimum wage. The budget deficit of 97.53 Billion Naira will be financed by both internal and external loans.”

“This budget seeks to aggressively invest in and develop our education, health and other physical infrastructure sectors. Although our capital spend on works and similarly, in healthcare, we have provided for a capital expenditure of 33 Billion Naira, compared to the 2019 budget proposal of 21 Billion Naira.”

“We will ensure that our primary health care institutions 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 3 Billion Naira in 2019 to 9 Billion Naira in 2020. Infrastructure was just 31 Billion Naira as at September 2019, as against the 2019 budget proposal of 78 Billion Naira, it is our intention to spend 115 Billion Naira in 2020.”

“Education will see a significantly increased capital budgetary allocation of 48 Billion Naira, an increase of 60% over the 2019 provision of 30 Billion Naira. 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.”

As the Y2020 budget awaits approval of the House, Governor Sanwo-Olu urged the members to boldly confront the existing threats faced by the state which arose from the interplay of demographic and climatic which could only be overcome by changing the collective will-power to take decisive action.

He also enjoined Lagosians to move from glib statements about Lagos as a center of excellence and rethink inter-communal relationships, infrastructural development, transport systems, our well-being and to rethink and reinvent the state as this is in line with the administration’s commitment to transparency and accountability in the management of public finances..

Rt. Hon. Mudashiru Obasa, the Speaker of the Lagos State House of Assembly, in his response, commended the Governor, Mr. Babajide Sanwo-Olu for being astute, courageous, insightful, forthright, thorough and determined.

“You have really displayed, during your few months in Office, that you are capable to maintain a track record of resourceful consistency in the State.”

The Speaker, however, reminded the gathering that the matter of budget presentation was essential.

“To indeed move Lagos forward, there is the need to focus more attention on rail to connect the entire Lagos. At the same time more still needs to be done about water transportation.”

To the Governor, “I charge you to be visionary and have a huge dream of paradise for our people”.

The Speaker assured the Governor of the strong and constant support of the House. “We are ever ready to walk the journey with you”.

Rt. Hon. Obasa enjoined his colleagues to discharge their responsibilities without expecting compensation. He added that they should continue to relate with their Constituents regularly.

He went further to advise the Local Government Chairmen to be on their toes and collaborate with the State Government.

The Lagos Speaker concluded, “We will ensure that Lagos State occupies the enviable position that has always been reserved for us. Our intention is to make this budget a special New Year gift to the people of this great State”.