Lagos presents biggest ever budget proposed by a Nigerian state
Ambode (right), delivering his speech
during the presentation of the Y2017
Budget Estimates to the House, at the
Assembly Complex, Alausa, Ikeja, on
Tuesday, November 29, 2016. With him
are Speaker, Lagos House of Assembly,
Rt. Hon. Mudashiru Obasa (behind) and
the acting Clerk of the House, Mr. Azeez
Adebowale Sanni (left).
The Lagos State governor, Akinwunmi Ambode, on Tuesday presented the 2017 budget proposal of N813 billion to the House of Assembly, assuring that the budget would be judiciously implemented to continue the
infrastructural renewal and the enhancement of Lagos as
one of the foremost tourism and investment destination in Africa. Mr. Ambode, who tagged the budget “The Golden Jubilee Budget” as it coincides with the State’s 50th Anniversary, said it would focus on physical infrastructure, while social sectors especially health, education, youth and
social development would get
adequate attention.
“In the course of the 2017 Financial Year, we shall carry
out fundamental reforms on
all our modes of transportation – Roads, Water
and the Walkways. In this wise, a Public Transport Infrastructure Bond will be issued in the course of the year,” Mr. Ambode said.
“The State Government will embark on the Urbanisation of the Marina axis, Waterways Channelization,
establishment of more Parks
and Gardens as well as the
Community Sports Centres
and Stadiums in different
locations across the State.”
The 2017 budget saw an
increase by N150 billion from
the 2016 budget.
The budget is also the biggest
for any Nigerian state ever.
Giving the key components of
the budget, Governor Ambode
said recurrent expenditure
would gulp N300. 535 billion
while N512.464 billion would
be dedicated to capital
expenditure, representing a
Capital/Recurrent ratio of 63 percent to
37 percent.
According to the governor, road
construction, rehabilitation and
maintenance would be one of the key
focuses of the budget, adding that efforts
would be geared towards roads that will
open up the hinterlands, improve
connectivity in the State and reduce
travel time.
He listed some of the road projects to
include Murtala Mohammed
International Airport Road from Oshodi,
Agric-Isawo-Owotu-Arepo Road in
Ikorodu, Igbe-Igbogbo Phase II- Bola
Tinubu Way in Ikorodu, Ijegun Imore
Phase II Amuwo in Ojo axis, Oke-Oso-
Araga-Poka in Epe, Epe-Poka-Mojoda in
the Epe axis and the completion of the
Abule-Egba, Ajah and Pen Cinema
flyovers.
The governor also said that within the
course of the budget implementation, his
administration would enter into a Public
Private Partnership (PPP) to execute
some road projects including Oke Oso-
Itoikin dualisation Project in the Epe
axis, Okokomaiko-Seme Road Project in
Badagry axis and Ikorodu-Agbowa-
Itoikin-Ijebu Ode Road Project in
Ikorodu axis, just as he disclosed that the
Phase II of the 114 Local Government
Roads project as well as the construction
of the Fourth Mainland Bridge would
also kick off in 2017.
“We will fully implement the Medical
Health Insurance Scheme and deploy e-
Health/ e-insurance Health Service
solutions; and complete the on-going
upgrading and extension work in the
State General Hospitals and Ayinke
House in Ikeja. Work will commence on
our Medical Park in the 2017 fiscal
year,” Mr. Ambode said.
On the revenue expected from federal
allocation, the governor said a
conservative approach was taken owing
to the falling oil prices, which according
to him, was about $41.98per barrel at
the time of finalising the budget.
He, however, expressed optimism that
the state would get an increase in
Federal allocation through the 13
percent derivation from Oil and Gas in
2017.
“In view of our financing gap, we shall
continue to sustain deficit financing in
the short-to-medium term; enhance
revenue growth throughout the year on
several initiatives including automation
and efficient revenue administration,”
the governor said.
Giving a sectoral breakdown of the 2017
Budget Estimates, Commissioner for
Finance, Akinyemi Ashade, said the
governor earmarked N205.85 billion for
General Public Services representing
25.32 percent of the budget, N36.43
billion to Public Order and Safety,
representing 4.48 percent, while
Economic Affairs received a lion share
of N295.84 billion representing 36.39
percent.
In other sectors, the commissioner said
Environment got N56.31 billion,
representing 6.93 percent, Health got
N57.29 billion representing 7.05
percent, while Education got N92.4
billion representing 11.37 percent of the
budget.
The Commissioner also said the budget
would be funded from a total revenue
estimate of N642.849billion while the
balance of N170.150billion would be
funded through a N100bn Bond Issuance
program and a combination of internal
and external loans.
Receiving the Budget, Speaker of the
House, Mudashiru Obasa, commended
Mr. Ambode for keeping faith with the
2016 budget in the area of
implementation, adding that Lagos has
witnessed a quantum leap in the last one
year.
Mr. Obasa, while assuring the governor
that members of the House would give
the 2017 fiscal document due diligence
for the benefit of Lagosians, called on
the Ministries Departments and Agencies (MDAs) to furnish the House with all the necessary documents to enable it fast-track the budget approval process.
The Lagos Speaker also seized the
occasion to call on the Senate to
reconsider the Special Status Bill for
Lagos State, saying there was no better
time to accord the State such
recognition.
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