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₦1.768trn 2023 Budget: Why we allocated N482.86bn, 27.3% of total size to modern Infrastructure – LASG

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….we are deliberate in the way we choose our projects – SA works

By Moses Adeniyi

The Lagos State Government (LASG) has justified why it allocated the larger chunk of the its 2023 ₦1.768trn budget to infrastructure, ahead of other key sectors as health and education.

According to the State Government, the lines of infrastructure are not close ended, but is a nexus that drives the functioning of all sectors, thus it’s line relatively defined.

The Lagos State Government has allocated 27.3% of its entire 2023 Budget to modern infrastructure, amounting to the tune of N482.86bn of the ₦1.768trn budget.

According to the State Commissioner for Economic Planning and Budget, Mr. Sam Egube, the lines of infrastructure cuts across all sectors as a nerve that enhances efficiency for their functioning.

He said: “When you think in terms of infrastructure, the budget tends to break things down into specific lines, but in the lives of our people, the feeling they get and what they see is not analysed in that way.

“So, when I do a road that opens you up and makes it easy for you to go into a healthcentre, you would call that not health, but the primary objective of doing that road is to open up the area to get into a hospital, so when you look at infrastructure, you will be looking at the infrastructure that is driving things in education, health system, transportation. So, all infrastructure is not just road or rail, it’s interwoven in a very intelligent way – a meshed way. Infrastructure is what makes the cost of doing business go down.”

Mentioning that citizens may not be disposed to provide for themselves infrastructure, he said the State looks to “build up our infrastructure basket on a developmental basis.”

Disclosing this at the press conference on the analysis of year 2023 budget held at Ikeja, the Capital City of Lagos, Egube said the 2023 Lagos budget christened “Budget of Continuity” was prepared to continue the projects of the Governor Babajide Sanwo-Olu led administration, especially in delivering reliable and sufficient infrastructure that meets the needs of a 21st century city.

Egube said: “The State is totally committed to ensuring that the dividend from its investments in Integrated Transport Infrastructure, which will materialise into the birth of the fully functional light rail (Red-Blue) system, the first of its kind by a sub-national Government in Africa and the 37km Fourth Mainland Bridge will be felt by the citizens of the State. These will reduce commute time to millions of Lagosians, reduce congestion on the existing Carter, Eko, Third Mainland Bridges and Ikorodu Road, thus increasing productivity, quality of life, as well as improving the overall transportation system in the State.”

The Commissioner highlighted the infrastructure projects the allocation captures in the budget as follows: Construction of the second phase of the Blue line rail project from Mile 2 to Okokomaiko; Completion of  eight Stadia across the five IBILE divisions of Lagos State, to facilitate youth development, engagement and community sports; continuous construction and rehabilitation of schools across the State to significantly improve access to quality education; completion of 130 bed new Massey ultra-modern and fit for purpose Pediatric programmed and emergency general hospital that will be the largest specialist children hospital in Sub-Saharan Africa.

Others include, the completion of the modern 280 beds General Hospital serving the people of Ojo and its environs which is currently at 47% completion; completion of the mental health facility in Ketu Ereyun in Epe local government; completion of the Opebi Link bridge to Maryland that will improve significantly travel time and alternative route options the axis; rehabilitation/upgrading of Phase II Eti-Osa – Lekki-Epe Expressway Project from Eleko T-Junction – Abraham Adesanya among others.

According to Egube, “most of these projects are contractor funded, with structures that provide very beneficial payment terms that gives the State upfront value (front loaded) ahead of payments; thereby increasing the sustainability benefits to the State.”

In her remarks, the Special Adviser to the Lagos State Governor on Infrastructures, Engr. (Mrs) Aramide Adeyoye, said the State is deliberate in the mannerisms of choosing projects plans for execution.

“We are deliberate in the way we choose our projects,” she said, mentioning that they are carefully selected to run in conformity to the effectiveness of the intermodal transport blueprint of the State.

Meanwhile, the State Government has also allocated 13% of the Budget for the provision of affordable and world-class education, healthcare and social services for its teeming populace to make the system accessible and affordable.

He said: “Human capital continues to be an area of deep interest to the State. We believe that a population that is healthy, skilled and inclusive can only convert the opportunities in the State to value.”

He added that: “We also intend to expand our effort in Social Interventions with an investment of N9.6bn as against N8.3bn in Y2022 Social Intervention and Humanitarian Programme that will serve as support for micro and small businesses. We will continue to procure training equipment, empowerment tools for graduates in skills and vocational centers across the State.”

According to the State Commissioner for Education, Mrs. Folasade Adefisayo, the budget would further build on the transformation process in the sector which she said has various steps.

Moreover, the State Government has reiterated its stand in continuing to invest in provision of affordable Homes for residents through its Social Housing Programme by injecting a total of N67.1bn.

Some of the social housing programmes the Budget targets include: the completion of 444 units of building Projects at Sangotedo Phase ll, completion of 420 units of building Projects at Ajara, Badagry Phase ll and the construction of 136 units of building Projects at Ibeshe ll, among others.

According to Egube, the State government commitment towards the State’s 5-year Agric road map had risen to the commissioning of the Imota Rice mills which will provide support to farmers and improve food systems generally in the State.

“In addition to this, the State will invest a total sum of N45.1bn for Food Security through Cattle Feedlot Project, Fish Processing Hub programmes and Wholesale Produce Hub & Market, thus improving wholesomeness of food, reduction in food prices and optimization of the Agricultural sector,” he disclosed.

He added that “The N86bn investment in Public Order and Safety Sector shows the State’s continuous commitment to ensuring that Lagos is safe for living, working and investment.

“It is important to note that N12bn has been earmarked for the provision of Rescue and Emergency operation equipment for disaster management. Also, provision has been made for surveillance and body cameras for security monitoring.”

He said the year 2023 Budget will invest in strengthening intelligence gathering/capacity building capabilities together with improving the ease of doing business through the Smart-City project, the Lagos new Data Center project, Eko Excel project, E-GIS and the Oracle upgrade project.

While reviewing the approved Y2022 Budget of ₦1.758trn which had a total revenue of ₦1.237bn and deficit financing of ₦521.275bn; Capital to Recurrent Ratio that stood at 66:34, with Capital Expenditure of ₦1.167trn and a Recurrent Expenditure of ₦591.281bn.

Egube said as at December 31st, 2022, the budget posted a performance of 74 percent, with revenue performance at 77 percent, while Capital & Recurrent Expenditure performed at 70 percent and 81 percent respectively.

He added that the 70 percent performance of capital is as a result of the late closure of the 134.815billion Bond transaction, which was oversubscribed in December 2022 and utilization differed till Y2023.

The State approved Y2023 Budget of ₦1.768trn is made up of ₦1.020trn (Capital Expenditure) and ₦748.097bn (Recurrent Expenditure- Debt Charges inclusive), resulting in a Capital to Recurrent ratio of 58:42.

The total Revenue is estimated at ₦1.418trn, while deficit-funding requirement is ₦350.411bn, which at 25 percent of Total Revenue implies that the Budget is strongly dependent on Revenue.

Egube urged the residents and businesses in the State to be tax committed to fulfil their obligations as and when due, stressing that it was by such commitment that the State Government could actualise its projects.

Recall that Lagos State Governor, Mr Babajide Sanwo-Olu had January 26th, signed the ₦1.768trn budget for implementation, reiterating it was drafted for continuity of projects his administration has begun.

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Nigeria’s Sovereign Wealth Fund hits $2.5bn

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…As NSIA grows income by 1,122% to N1.18 trillion in 2023

Latest statistics from the Nigeria Sovereign Investment Authority (NSIA) has revealed that the Nigerian Sovereign Wealth Fund has hit $2.5bn.

The NSIA was initially allocated an initial sum of US$1 billion in seed capital in 2013.

The record N1.184 trillion Total Comprehensive Income recorded by the Nigeria Sovereign Investment Authority (NSIA) in 2023 was largely driven by four tactical strategies, including cost efficiency, efficient balance sheet management, infrastructure investment and a focus on projects that yielded sustainable earnings.

This was disclosed by Aminu Umar-Sadiq, NSIA Managing Director & Chief Executive Officer who spoke to the media on Thursday, on the Authority’s recently released financial result.

NSIA’s total Comprehensive Income surged 1,122 percent to N1.18 trillion in 2023, relative to N96.96 billion reported in 2022. Total Comprehensive Income (excluding foreign exchange gains) equally rose from N21.39 billion in the previous year to N164.69 billion, marking a 670 percent growth.

Presenting the Authority’s 2023 financial performance to the media in Abuja, Umar-Sadiq explained that the renewed focus of the Authority which manages the country’s $2.5bn played a key role in delivering such impressive results.

According to him, the focus area on efficient balance sheet management ensured the timely availability of both local and foreign currency investments, thereby optimising currency utilization. This strategy also ensured optimal asset allocation and utilisation and retained a substantial portion of the balance sheet in foreign currency.

Also, with the focus on sustainable earnings, the NSIA directed efforts towards swiftly stabilising infrastructure projects. This, according to him, entailed engaging with instruments that guarantee consistent and reliable returns, further bolstering the Authority’s financial stability.

Umar-Sadiq further disclosed that the NSIA pioneered investment initiatives, particularly in environmentally sustainable ventures, with notable successes achieved through partnerships in green climates with organisations like CarbonVista.

It also prioritised cost efficiency, striving to transition towards digitised, streamlined operations that effectively addressed prevailing challenges. This shift, he said, optimised resources and enhanced operational effectiveness, further contributing to NSIA’s “excellent” financial performance.

As contained in its financial statement, NSIA in the last 10 years has continued to show resilience and growth in asset performance while creating value within the economy. Its net assets have grown from N156 billion ($1 billion) in 2013 to N1.189 trillion, an equivalent of $2.47 billion as at 2023.

In 2023 alone, Total operating income rose substantially from n101.1 billion in the previous year to N1.176 trillion, representing a 1,064 percent year-on-year increase.

NSIA strategically optimised its asset allocation, resulting in a Total Comprehensive Income of N1.184 trillion for 2023 – a remarkable 1,122 percent growth from N96.96 billion in 2022.

Amidst a challenging global financial landscape, the Authority’s core Total Comprehensive Income (excluding foreign exchange gains) rose from N21.39 billion in the previous year to N164.69 billion, marking a 670 percent increase attributable to the Authority’s robust strategic asset allocation and adherence to best-in-class enterprise risk management processes.

“I think a combination of our strategic and tactical activities is what helped us transition from N96 billion net returns in 2022 to over N1 trillion in net returns in 2023,” Umar-Sadiq told journalists.

“Whilst of course there is a component of foreign exchange gains in this, you will see that even on the core basis, we actually grew our returns by over 650 percent, to 160 billion,” he added.

Besides, the NSIA embarked on several infrastructure-focused activities in 2023, and “largely achieved what it set out to do in the financial year.”

Some of those projects include the 10MW Kano solar project which is the largest grid-connected solar PV plant in Nigeria; launch of strategic platforms including $202m MEDSERVE and $63m Equilease; $50mn launch of Renewables Investment Platform for Limitless Energy (RIPLE) and a strategic partnership agreement with the IFC, among other initiatives.

In addition to its financial performance, the NSIA boss informed that the Authority emerged tops at the 2023 Global SWF Governance, Sustainability, and Resilience Ranking, after scoring a perfect 100 percent, with esteemed SWFs like Temasek and NZ Super Fund.

Umar-Sadiq explained that the GSR Scoreboard analysis reflects the Authority’s substantial progress from a previous score of 84 percent, showcasing its enhanced sustainability practices including improved policies, a robust framework, climate investment leadership, and impactful reporting.

For 2024, the Authority will lay strong emphasis on enhancing fiscal responsibility within the institution to maintain stability and credibility, as well as attracting foreign investments.

The MD was confident of an excellent financial performance in 2024, noting over $500 million investments in domestic infrastructure which has created some 545 direct and indirect jobs.

He also underscored commitment to operationalising existing platforms to effectively attract foreign capital to complement its existing resources and emphasized the need for scalability to maximise the Authority’s impact within its operational sphere.

NSIA strategic priorities in 2024 are outlined in four key areas – operationalising its subsidiaries; broad and ambitious digitisation strategy and cost-efficiency strategy in place; focus on pioneering initiatives in new sectors, driving innovation and strategic growth to stay at the forefront of economic development; and building strong relationships with regulators, strategic partners, and development finance institutions (DFIs).

NSIA Executive Director and Chief Operating Officer, Bisi Makoju, further shed light on the organisation’s financial performance, emphasising efficient fiscal management within the Authority,

According to her, a significant indicator of NSIA’s fiscal discipline is its core income ratio analysis for the year 2023 which showed a remarkable drop to 8.6 percent, as against 30.2 percent in 2022.

“This signifies that NSIA is spending significantly less than what it is earning and kept expenses below the inflationary rate,” she emphasised.

“Despite a challenging economic environment with inflation reaching approximately 28 percent by the end of 2023, the Authority’s year-on-year change in expenses stood at approximately 18.4 percent.”

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Mixed reactions trail Adeleke’s proposed new logo for Osun state

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By Ismail Azeez, Osogbo

Following the condemnation that trailed the unveiling of a new logo for Osun state, Governor Ademola Adeleke has directed the holding of a logo crafting competition between April 19th and 26th.

Governor Adeleke had on Wednesday, assented to a bill adopting a new logo for the state.

Adeleke, through a statement signed by his spokesperson, Olawale Rasheed, said the new symbol is a signal of a new rebirth for Osun state.

However, the opposition party has condemned the new Logo, describing the bill on creating a new logo for the state as a waste of the taxpayers money which at the end will not make any impact.

A statement signed by the chairman of the Allied Peoples Movement (APM), Wale Adebayo, in Osogbo, Osun state capital, said that the whole idea about the new logo project was misplaced, as it amounts to climbing a tree from the top.

“We at the APM align with the critical mass of the state to say we are not impressed with the new logo project, it’s simply a waste of taxpayers’ money.

“The people need leadership that can transform their lives and concerns, provide employment opportunities for them and not logo. What has the administration given to the masses since it was sworn in? Absolutely nothing, people need the leadership of the state to solve their problems. The quality of leadership, the contentment of your citizens and the level of security in your state is what should matter.”

But, in another press statement issued on Thursday, signed by Governor’s Spokesperson, Olawale Rasheed, said, “those submitting a design are to take into account the prototype logo in terms of its contents and style.

“The submission can be made in person both soft and printed copy to the Office of the Commissioner, Ministry of Information and Public Enlightenment.

“Entries can also be submitted online via [email protected] or [email protected], with bio data and contact details of the designer. The subject should be with the subject ‘OSUN STATE LOGO.’

“The best design will be announced on April 28 and will be  unveiled on April 30th during the new edition of Ipade Imole.

“Commenting on the one week competition, Governor Adeleke noted as follows:

“As a listening leader,  I have asked that we open the change of logo to more public input through this one week competition.

“The best three designers will be invited and compensated,” the statement added.

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PDP NEC endorses Damagum-led NWC

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The National Executive Committee (NEC) of the People’s Democratic Party (PDP) at its 98th meeting in Abuja, yesterday gave a nod for the Amb. Umar Damagum-led National Working Committee (NWC) to continue in office.

Chairman of the PDP Governors Forum and Bauchi State Governor, Bala Mohammed, while fielding questions from journalists after the NEC meeting, expressed delight that contrary to expectations of the party’s enemies, the meeting was held in s peaceful atmosphere.

The camp of former Vice President, Atiku Abubakar, had moved to have Damagum return to his position as Deputy National Chairman (North) to let the North Central produce a substantive National Chairman to complete the truncated tenure of former Chairman, Dr. Iyiorchia Ayu.

Bala said, “You can see there was no dissension and rancour. It was planned that the party will have an implosion. PDP is more than that, we have given beyond all these.

“This party is a united party that is guided by experience and constitutionality. There were a lot of permutations and mischievous thinking outside there.

“But we looked at all the issues and we worked along our guidelines and constitution. There is no problem or dissension among members.”

On the issue of a new chairman from North Central, the PDPGF Chairman said, “In the next two months we will see a lot of activities.”

“Leadership is a responsibility. We said in September we would have come out from our congresses.

“We will look at the issue of leadership and look at the issue of our constitution where it will be. And we will do it with no rancour.”

Also speaking shortly after the NEC meeting, Damagum told reporters that the position he occupies is not a matter of life and death for him.

He said, “This is not a matter of life and death. I am still an elected member of this NEC. Even If I revert to deputy national chairman I’m still a member of NWC. The issue of surviving or not does not emerge.”

National Publicity Secretary of the party, Hon. Debo Ologunagba, who read the communique after the NEC meeting, said, “The NEC of our great Party, at its 98th meeting today, Thursday, April 18, 2024, thoroughly assessed the State of affairs of the Nation and the Party and resolved as follows:”

“NEC commends all the Organs of the Party for their collective resilience, steadfastness and commitment towards the unity, stability and sustenance of our great Party despite daunting challenges.

“NEC also commends members of the PDP, with particular reference to the youths and women for their courage in resisting the antics of the divisive and anti-people All Progressives Congress (APC), especially, its desperation to emasculate the opposition and foist a one-Party State on our nation.

“NEC expresses concern over the ill-implemented policies of the insensitive APC administration, leading to worsening insecurity, harrowing economic hardship, soaring unemployment rate, high cost of food and other necessities of life with pervading misery and despondency across the country.

“NEC expresses serious apprehensions over the spate of acts of terrorism and violence including the escalated cases of mindless killings, mass abduction of innocent Nigerians and marauding of communities in various parts of the country.

“NEC condemns the insensitivity, nonchalance, incompetence and arrogance in failure of the APC administration which continues to conduct itself in a manner that shows that it has no iota of interest or commitment towards the wellbeing of Nigerians.

“NEC also condemns the creeping totalitarianism and tendencies towards a One-Party State which is inimical to the peace, stability and corporate existence of our nation as well as the development of Democracy and good governance in the country.

“NEC, after due consideration demands that President Bola Ahmed Tinubu should urgently convene a special National Security Council meeting to proffer a holistic solution and measures to curb the disturbing insecurity with its attendant negative consequences on our national life.

“NEC also demands that President Tinubu should immediately rejig his Economic Team to bring in persons of proven integrity and competence without bias and vested interest to assist in repositioning the economy.

“NEC further demands that the Federal Government should review all policies and programmes which are stifling the economy with a suffocating effect on the lives of citizens; including the increase in price of fuel without cushioning measures, hike in electricity tariff, increased taxation and implementation of adverse fiscal policies.”

According to him, it was also agreed at the meeting that all Organs, leaders, critical stakeholders and indeed all members of the PDP should close ranks, put aside every personal or group interests and work together in the overall effort to reposition and return the PDP to power at the center in the interest of the Nigerian people.

Other key decisions taken include the consideration and approval of the Timetable for Party Congresses across the country.

It  also  approved the Reconstitution of the Party Disciplinary and Reconciliation Committees to further ensure the stability of the Party.

The body also approved the extension of the life of the Party Constitution Amendment Committee to allow it to receive new amendment proposals for inclusion in its deliberation and final report for consideration by NEC.

Ologunagba equally announced that “NEC commended the efforts of the National Working Committee in its effort towards rebranding the Party including the new look PDP Logo which is widely accepted by Party members and Nigerians in general.”

Earlier, in his opening remarks the BoT Chairman, Sen. Adolphus Wabara, expressed concerns about the attitude of party leaders toward observing constitutional provisions and conventions with respect to party leadership positions.

He cited the controversy surrounding the position of the Ag. National Chairman as well as the National Secretary.

Wabara said, “We cannot ignore the fact that our party is facing internal strife, fueled by inactions, disagreements and misunderstandings that threaten to undermine the very foundation upon which the PDP stands.”

“The recent events have brought to light the urgent need for reconciliation, unity, and collective action to steer our party back on course.

“As the custodians of our party’s values and principles, it is incumbent upon us to address the crises that have arisen from the recent challenges surrounding the leadership and actions of the National Working Committee.”

Also in his opening remarks at the beginning of the NEC meeting, Damagum gave an account of his stewardship since he assumed office about one year ago.

He said, “Let me specially welcome you to this all important meeting, the first of its kind coming after the 2023 general elections.”

“As you are all aware that the last general elections came with lots of unexpected challenges that robbed us of victories.

“These challenges were both internal and external. However, the outcomes of the general elections were appropriately challenged by our well selected legal teams in all the Election Petition Tribunals down to the final Court where the final verdicts were delivered.

“As a law abiding party, we accepted the verdict of the final Court but not without many reservations.However, we must give kudos to our legal team for their tenacity and professionalism while the case lasted and our party faithful who were always physically available during each sitting to give moral support to the party.”

He congratulated all elected governors and legislators of the party for winning their elections, especially those who were returned by various electoral tribunals.

Presenting his report on off-cycle elections under his watch, Damagum said, “NEC will also recall that there have been off-cycle elections that have been concluded.

“The outcome of the off-cycle elections in the trio states of Imo, Bayelsa and Kogi have come and gone with our party retaining Bayelsa state.

“Preparation is also on in Edo and Ondo governorship elections. With the support of all concerned we are confident that soon we will congratulate ourselves.”

On the state of the nation, the PDP Acting National Chairman said, “It is no longer news that Nigerians are suffering under the hard and unfriendly APC-led government.

“The rate of unemployment, poverty, insecurity is so high that most Nigerians go to bed without food in their stomach. Our farmers can no longer go to their farms because of fears of being killed.

“Industries are closing down and moving to neighbouring countries as a result of unstable power supplies, unfavourable government economic policies.

“Young Nigerians and professionals of various fields now sleep in various embassies so as to procure their papers and JAPA.”

He also spoke of efforts being made to reconcile and unite aggrieved members in the overall interest of the party.

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