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Economic affairs, works, loan servicing attract larger allocations in Lagos Y2021 budget
By Moses Adeniyi
A breakdown analysis of the sectoral allocations of the Lagos Year 2021 budget tagged “Budget of Rekindled Hope’’ has revealed that allocations for Economic Affairs, Works, and Loan servicing, attracted larger share in the budgetary provisions.
The allocation for the three items in the Budget was earmarked at N332.698bn; N244.845bn and N162.715bn respectively.
Other sectors Nigerian NewsDirect observed to have attracted substantial allocations beyond N100bn include General Public Services N143.168bn; Other General Public Services N118,594bn; and Education N146,934bn; Health N105,987bn.
A comprehensive breakdown of the sectoral allocation in the Budget include, General Public Services N143.168bn; Science and Technology N24.573bn; Other General Public Services N118,594bn; Public Order and Safety N42.274; Economic Affairs N332.698bn; Agriculture N12.981bn; Commerce N15,230bn; Tourism, Art & Culture N5,052bn.
Others are Energy and Mineral Resources N30.826bn; Transportation N92.745bn; Infrastructure – Works Family N244.845bn; Waterfront N9.282bn; Environment B59.656bn; Drainage N14,936bn; Other Environment Services N44,723bn.
Housing and Community Amenities N37.028bn; Health N105,987bn; Recreation, Culture and Religion 7.296bn; Education N146,934bn; Social Protection N9.156bn.
Statewide allocations include Contingency Reserve (Including Special Expenditure – Statewide and Special Expenditure- Others) N21.554bn; Loans (Repayments, CDSA & Debt Servicing) N162.715bn; Personnel Cost (Pension) N37.985bn; Grants & Counterpart Fund N57.064bn.
It will be recalled that on Tuesday, 10th November 2020, Mr. Governor, Babajide Olusola Sanwo-Olu presented the proposed Y2021 Appropriation Bill to the Lagos State House of Assembly for consideration and assent.
The bill was subsequently passed on Tuesday, 29th December 2020 by the Lagos State House of Assembly and it was signed into law by the Governor on 31st December, 2020.
The approved Y2021 Budget size is N1.164trn, which is made up of N702.935bn for Capital Expenditure and N460.587bn for Recurrent Expenditure, giving a 60:40 Capital to Recurrent expenditure ratio strongly in favour of Capital Expenditure.
The Total Revenue is estimated at N971.028trn, while the deficit is N192.494bn, which will be financed by a combination of external, internal loans and bond which are well within the State’s fiscal sustainability benchmarks.
The highlighted objectives of the 2021 Lagos budget include to aggressively develop and maintain Infrastructure; create employment and enhance food security; improve civic participation, inclusion and cooperation in governance; invest in human capital development, i.e. education and healthcare; and to deploy functional technology in public services.
Others are to improve capacity to collect due revenues as efficiently as possible; attract investments through Public Private Partnerships; improve the Health care systems, Environment and Public spaces; improve Youth Engagement, Participation and Empowerment; rebuilding Lagos.
According to the breakdown of the total ¦ 1.164 trillion budget size, the Budget will be funded from a total revenue estimate of ¦ 971.028 billion, comprising Total Internally Generated Revenue (TIGR) of 723.817 billion; Capital Receipts of 71.811 billion; Federal Transfer of 175.400 billion.
A significant percentage of the projected TIGR of N512 billion is expected to be contributed by LIRS.
In a briefing to detail the analysis of the Y2021 Budget on Thursday, the State’s Commissioner for Economic Planning and Budget, Mr. Sam Egube said the Y2021 Budget is consistent with the T.H.E.M.E.S agenda and designed to give priority to the completion of inherited on-going projects.
“The year 2021 is indeed a year of Rekindled Hope with the recent global and national events such as the COVID-19 pandemic, the EndSARS protests, and the general feeling and demand of our people for an inclussive governance, equitable quality of life and consistent economic growth,” the Commissioner said.
Egube disclosed that the feat of the projected TIGR of N512bn will be achieved by expanding the tax net in simplifying the tax process, improving transaction taxes and the appropriate use of technology in addition to improving the work environment, training and tools of the State’s tax administration personnel.
“This will improve the efficiency in operations of all revenue generating agencies.
“We believe that there are huge revenue generating opportunities in the state, including real estate, transportation sector and our markets generally etc. We will continue to use data and intelligence to unravel revenue opportunities and leakages.
“We have continued to maintain a relative conservative posture in our projection for Federal Transfers/Receipts compared to our annual run rate in 2020 in view of the production challenges within the Oil Sector by keeping our expectation at N175bn,” he said.
The N192.494bn deficit is projected to be funded by a combination of internal and external loans.
A breakdown of the total expenditure of N1.164 trillion budgeted for Y2021, includes Recurrent expenditure of 460.587 billion, and a Capital expenditure of N702.935 billion Capital to Recurrent ratio of 60:40.
The breakdown of the recurrent expenditure includes N168.726 billion for Total Personnel Costs; 260.074 billion for Total Overhead Costs; 31.787 billion for Debt charges .
The recurrent expenditure is moderated at a level of 40% of the Total Expenditure, out of which the personnel cost is N169 billion representing 14.5% of the Total Expenditure, which is within the fiscal sustainability ratio of 25%.
Capital Expenditure accounts for 60% of the total budget size.
According to Egube, “This is a demonstration of the administration’s commitment to massive infrastructure renewal and development towards rebuilding and actualizing a Greater Lagos.”
The budgetary provision of N150.753bn for the maintenance of roads and other infrastructures within the State is expected to address the zero-pothole strategy, create link-roads within the metropolis to resolve traffic congestion and its attendant risks.
Under the allocation for roads and other infrastructures, the sum of N15 billion was earmarked for the Rebuild Lagos project/trust fund; N11 billion for Reconstruction of lekki-epe expressway from Eleko junction to Epe T-junction (phase one); N8.750 billion for Lekki Regional Roads; N19.500 billion under Project Stabilization Fund to intervene on various projects across the State; N10 billion under State Infrastructure Intervention Fund to also intervene on Roads within Local Government and LCDAs.
The total sum of N13.115 billion was earmarked for construction/completion of Agege Pen Cinema Flyover, Oregun Bridge Road Network, Agric Isawo Road, Bola Ahmed Tinubu Road, Igbogbo, Ijede Road and Mba Cardoso Road; while N5.9 billion will be spent on Lagos Badagry Expressway
Just as the sum of N8.5 billion has been set aside under Community/Grassroot Projects for various projects.
On development of infrastructure along the coastline, a provision of N8.842 billion was earmarked to enhance coastal infrastructure in order to curb the ocean surge and protect lives and properties.
On health, a total sum of N137.948 billion (as against a total sum of N111.775 billion in Y2020) was provided for the continuous upgrading/renovation of health facilities and completion of on-going healthcare infrastructure, including Maternal and Child Care Centers (MCCs); and the continued implementation of our health insurance scheme.
“This represents over 23% increased provision for the health sector, thereby demonstrating the administration’s determination to ensure access to health care,” Egube said.
Some of the Major projects planned include: The completion and equipping of the New Massey Children Hospital, General Hospitals, Ojo, Construction of Infectious Disease Research Center, Yaba, Upgrading of e-Health Platform for Health Insurance, Rehabilitation & Upgrading of General Hospital, Lagos and Construction of the Oncology Center at Gbagada.
At the briefing Egube assured that that the administration “will leave no stone unturned in ensuring the full implementation of this budget.”
He however appealed to all the residents of Lagos to fulfil their civic responsibilities, such as pay their taxes as and when due in order to ensure the optimal performance of the budget.
Reviewing the performance of the Y2020 Budget, the Commissioner disclosed that despite the strains the chains of COVID-19 and #ENDSARS circumstances posed on the State with the downsizing of the 2020 Budget by 21% from N1.169 trillion to N920.5 billion, as at the third week of December, 2020, the total Revenue of the State performed at 93% while the total Capital Expenditure and total Recurrent expenditure performed at 80% and 86% respectively.
“In spite of all these challenges, I am delighted to inform you today that we have made remarkable progress in all crucial sectors especially Finance, Health, Education, Transportation, Agriculture, Infrastructure and the Environment,” he said.
By Matthew Denis
The Federal Ministry of Works has terminated contract numbers 6,136, 6,137 and 6,138 with Mothercat Ltd, Dantata & Sawoe Construction Ltd and RCC Ltd, respectively.
The projects affected by the termination are the dualisation of Obajana – Benin road, section II (Okene – Auchi) in Kogi/Edo State; the dualisation of Obajana – Benin road, section III (Auchi – Ehor) in Edo State and the dualisation of Obajana – Benin road section IV (Ehor – Benin) in Edo State.
This was contained in a statement released by Orji Uchenna Orji, Special Adviser (Media) to the Minister of Works on Monday.
According to the government, the termination became necessary in view of the alleged inordinate delay by the affected companies in job performance and their failure, neglect and refusal to fulfil their contractual obligations as required by the Standard Conditions of Contract.
Orji stated that this had affected the timely completion of the projects and thus resulted in the expiration of the contracts by effluxion of time.
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Ogbe has stated that the board remains on track to achieve its target of achieving 70 percent local participation in the oil and gas industry by 2027.
The NCDMB ES made this known yesterday at the Nigerian Oil and Gas conference (NOG) holding in Abuja.
Engr. Ogbe, speaking at the opening of the Nigerian Content Seminar, said jobs in the industry can only be out-sourced when there was no in-country capacity.
He said the board would continue its stringent monitoring of projects in the country to ensure that where local capacity exists, Nigeria companies were given the opportunity to bid for the jobs.
He stressed that the “board will only approve local content plans that consist of contractors meeting the legal definition of Nigerian companies and demonstrating the capacity to execute projects within Nigeria.”
He added the NCDMB would continue to ensure that all services provided in the industry “generate values within the country.”
On his part, the Director, project Certification and Authorisation, NCDMB, Engr. Abayomi Bamidele said a lot of progress has been made in growing local capacity in the Nigerian oil and gas industry, disclosing there are currently over 13,000 indigenous oil service firms registered by the board and over 120 operators registered also.
The Federal Government has announced that the Governing Councils of Federal universities, polytechnics, and other tertiary institutions will be inaugurated on July 4, 2024. The Academic Staff Union of Universities (ASUU) has rejected the composition of the newly constituted governing councils, stating that the list is dominated by retired politicians rather than experts in academia or relevant fields.
ASUU’s national President, Prof Emmanuel Osodeke, expressed concerns over the trend in the appointment process, emphasising that the union demanded the reinstatement of the ‘illegally’ dissolved governing councils, not the constitution of new ones.
Despite ASUU’s ultimatum, the Federal Government has proceeded with the inauguration, which is expected to take place on July 4.
President Bola Tinubu approved the reconstitution of the Governing Councils and Boards of federal universities, polytechnics, and colleges of education, with 560 individuals appointed to the governing councils and boards of Federal Government-owned tertiary institutions.
The approval was given for the effective management of Nigerian tertiary institutions across the country.
It was gathered that the Acting Vice Chancellor of the University of Abuja, Prof. Aisha Maikudi, announced the inauguration date during her acceptance speech on Monday, while assuming the institution’s affairs.
A total of 560 individuals were appointed to the governing councils and boards of Federal Government-owned tertiary institutions.
For the University of Ibadan, the President appointed Chief Bisi Akande as the Chairman of the governing council. The board members are Alexander Ajipe, Nelson Alapa, Ifeoma Nwankwo, and Prof. Emmanuel Alo.
Chief Wole Olanipekun (SAN) was appointed as the Chairman of the governing council of the University of Lagos. The council members are Bello Kumo, Prof. Idowu Mark, Niyi Akande, and Bola Njoku.
Isa Yuguda chairs the board of the National Open University. The council members are Goddy Etta, Yomi Balogun, Deborah Apah, and Hingah Biem.
Siyan Oyeweso has been named as the chairperson of the governing council of Obafemi Awolowo University. Joining him are Edward Sarki, Joseph Abaagu, Wahaab Owokoniran, and Abubakar Kachaalla, who have been appointed as council members.
Additionally, Adebayo Shittu, Muiz Banire, and Senator Florence Ita Giwa have been appointed as chairpersons of the governing boards for David Umahi University of Medicine in Ebonyi State, Federal University of Transportation in Katsina State, and Federal Polytechnic in Ugep, Cross River State, respectively, among others.
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