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Economic affairs, works, loan servicing attract larger allocations in Lagos Y2021 budget

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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.

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Six killed, several injured in Borno suicide attack

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At least six persons were killed and many others injured on Saturday in a bomb attack at a wedding venue in Tashan Mararaba, Gwoza town, Borno State.

According to a security analyst and counter-insurgency expert, Zagazola Makama, the bomber, who was later identified as a young lady in her early twenties, detonated her explosive device in the middle of the gathering, causing chaos and destruction.

Intelligence sources told Makama that the victims, who were all civilians, were returning from a wedding celebration when the attack occurred near a busy motorpark.

It was learned that emergency services were rushed to the scene to rescue those injured and transport them to the hospitals in Gwoza.

One of the sources said medical personnel in the hospital said at least six people were killed while fifteen others were injured in the attack.

Speaking with reporters in Maiduguri, the state capital, the Borno State Commissioner of Police (CP), Yusuf Lawal, confirmed the attack saying it was carried out by a female suicide bomber.

Lawal said he was informed by the Divisional Police Officer in Gwoza, that at least six people were killed, with 15 others evacuated to the hospital.

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Pilgrimage sponsorship: Mixed reactions trail NAHCON’s operations, as Govs slam inefficiency

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…N90bn subsidy not for sponsorship, but to help stranded pilgrims – MURIC

…National VC of Council of Ulama backs Gov. Bago on probe of NAHCON

…It’s time to end pilgrimage sponsorship – Bishop Emmah Isong blows hot

Rauf Oyewole, Bauchi

Controversies have continued to erupt after the call by the Niger State Governor, Muhammad Umar Bago and Bala Mohammed of Bauchi State to scrap the National Hajj Commission of Nigeria (NAHCON) and set up an agency that will regulate pilgrimage.

The two governors have publicly criticised the hajj management of the Hajj pilgrimage, calling for reforms and decentralisation.

Recall that Bauchi State governor, Bala Mohammed accused NAHCON of failing to meet expectations despite exorbitant charges of over N8 million for a Hajj seat.

He deplored the hardship faced by Nigerian pilgrims in Saudi Arabia while stressing the need to decentralise Hajj operations.

According to the governor, the decentralisation would allow state governments to take full control of Hajj affairs and ensure adequate welfare of their respective pilgrims who paid for Hajj fares through the State Pilgrims Welfare Boards.

Also, Bago, who spoke in a viral clip, sharing his experience in 2024 Hajj demanded a thorough investigation into a N90 billion subsidy given by the Federal Government.

The Governor had earlier posited that “As a state governor, I want to lead a committee of the governors and the Nigerian Governors Forum  (NGF) to scrap NAHCON. NAHCON is not helping matters.”

He said the Federal Government is too big to be worried about Hajj problems.

“This is a local government issue, not a state one. State governments should be able to organise pilgrimages and engage agents from the private sector who can manage this more effectively, as other countries do. The government has no business in doing this,” he said.

“Can you imagine governors of Nigeria, the Speaker of the Federal Republic of Nigeria, paying to NAHCON and having no place to sleep and being embarrassed? People will say it is because governors have been affected. Yes, they have been affected, but it is good that we are affected, and this is the time for us to change the narrative,” he said in the video.

He further lamented that: “We have failed and continue to fail. NAHCON is supposed to be a regulator, not an operator, but it has continued to act as an operator and has, therefore, failed pilgrims. Can you imagine that feeding, accommodation in Medina, tents in Muna, transportation, and healthcare workers are all managed by NAHCON? No other country in the World does this.”

“NAHCON has no business chartering flights; it is not their responsibility to feed the pilgrims. For example, I am from Niger State. If you allow me to feed pilgrims, I will be able to transport food that people are locally used to to Saudi Arabia to feed my own pilgrims,” he said.

While speaking, the Founder/Executive Director of Muslim Rights Concern (MURIC), Prof. Ishaq Akintola, advised Governor Bago to channel his suggestion on how to improve the Hajj operation.

According to him, NAHCON has been engaging in internal restructuring and has always welcomed new ideas.

On scrapping NAHCON, Akintola said that: “We want the Federal Government to stop interfering in Hajj operations, we are capable of handling our things. About five to six years ago, the Nigerian Supreme Council for Islamic Affairs demanded that the Hajj operation be handled by Muslim Community; the government does not need to interfere at all.

“The only place the government needs to come in is the area of international relations, international travels, issuance of passports and protocols.”

MURIC dismissed the uproar on the N90 billion subsidy by the Federal Government, saying that some people were out to give the government of the day a “bad name.”

According to him, “The Federal Government did not sponsor pilgrims. The N90 billion given was not for sponsorship. Economy of Nigeria nosedived and the Naira fell against the Dollar. The value of what they have paid became short and they needed additional N2 million each to meet up. As a responsible government, the Federal Government intervened by supporting the pilgrims who could not meet up with the deadline.”

Akintola said that such intervention could be extended to Christians Community as the government has been doing to its citizens in distress. He cited the Ukraine war where Nigerian students were trapped and the government quickly intervened to evacuate the stranded students.

MURIC said it would not comment on the demand for a probe of NAHCON as it has enough evidence of any mismanagement of funds.

Speaking on the sponsorship of pilgrimage, National Publicity Secretary of Pentecostal Fellowship of Nigeria (PFN) and Former Chairman of PFN Cross River State, Bishop Emmah Isong, said in his personal opinion, it is time to stop sponsorship of pilgrimage to holy lands.

According to him, Nigeria has many religious historical sites that could attract foreigners to Nigeria.

He said, “Let’s make it a public-private partnership. I mean where the government will provide security and manage visas, diplomatic matters.”

He said that as a stakeholder in Christian Association of Nigeria (CAN), he never used government resources to perform pilgrimage.

“I raise money to sponsor myself. Somebody should do so. We must not be colonialistic in our ways.

“What we have now is people sponsoring their girlfriends, those who have three or four wives are sponsoring their families to both Mecca and Jerusalem. The poor man doesn’t go on pilgrimage, those without connection don’t go on pilgrimage. Pilgrimage is your personal venture for spirituality. So what is the business of Nigeria?”

Also speaking, the National Deputy Chairman, Council of Ulamas, Sheikh Danazumi Musa, aligned with the submission of Governor Bago to probe the fund released to NAHCON, saying that the as a major stakeholder must have experienced or noticed injustice before coming to the public to demand for the probe.

“In Islam we don’t tolerate injustice. I’m in support of a special Committee of Inquiry into this year’s Hajj exercise. There are a lot of complaints from the pilgrims.”

Musa believed that there was nothing wrong in subsidising Hajj for Nigerians pilgrims, adding that subsidy is given to citizens across the World when a responsible government feels that things are tough for its people.

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Minimum wage: We will pay what we can — Southern Govs

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The 17 Governors from the Southern part of Nigeria under the aegis of the Southern Governors’ Forum have advocated that each state be allowed to negotiate a new minimum wage they can pay with the labour unions.

This was contained in a communique issued at the end of their meeting held in Abeokuta, the Ogun State capital.

“The Forum discussed the minimum wage issues demanded by labour and unanimously agreed that the minimum wage should be reflective of the cost of living and ability to pay, and each State be allowed to negotiate their minimum wage,” the communique partly read.

In the 16 points communique, the Forum called for strengthening of fiscal federalism and devolution of powers and expressed concern over current practices where mineral licences are issued and explorations undertaken without recourse to state governments.

It noted that issuing mineral licences without carrying the states along have resulted in criminal activities, attendant negative environmental impact, ecological degradation, and with no remediation commitment or revenue accruing to the States or the Federal Government.

The governors maintained that being the economic and industrial region of the country, there was a need to address the inadequate power supply in the region by taking advantage of the recent constitutional amendment that now allows States to regulate, generate, transmit and distribute electricity whilst also considering optional sources like renewables.

The southern governors said they have resolved to aggressively embark on energy transition plan from fossil fuels (petrol and diesel) to cleaner energy and specifically CNG (Compressed Natural Gas) and ultimately EV’s (Electric Vehicles) to help reduce the cost of transportation, which would lower the cost of food, goods and services of the citizens and residents.

The meeting also called on the Federal Government to rehabilitate, repair and reconstruct Trunk A roads and transfer some roads to States that have expressed interest in taking them over, applauding President Tinubu for conceptualising and commencing the construction of the Lagos-Calabar Coastal Road, which cuts across eight states of the region.

The Communique hinted that the governors have resolved to commission a regional multimodal transport master plan that would prioritise connectivity of rail, road, air and water transportation, to facilitate interstate, intra-regional movement of persons, goods and services and thereby enhancing the ease of doing business.

It further stated that Southern States Development Agenda (SSDA) would comprise of a team whose primary responsibility is to outline a holistic plan to foster trade and investment, sustainable growth and development, economic prosperity, social harmony and food security for the region would be set up.

The Development Agenda, the governors added, would work hand in glove with individual State Investment Promotion and Facilitation Agencies, the Nigeria Investment Promotion Commission (NIPC) and other relevant MDA’s and multilateral agencies as necessary.

On the issue of state police, the Governors resolved to continue to advocate for the creation of State police against the backdrop of the success of the regional community based security outfits, which have been effective in intelligence gathering.

The governors, the communique further stated, resolved to remain united and committed to oneness of purpose, noting that the physical boundaries that divide the people of the south could not be compare to the strong bonds of enterprise, resilience and culture that they share just as they have resolved to be deliberate and intentional about intra region trade, partnerships and investment facilitation and promotion which was agreed would require a structured and coordinated collaborative approach.

The members of the Forum commended Mr President Tinubu for the food palliative support to States and the laudable economic recovery reforms and policies through the implementation of the Renewed Hope Agenda pledging to support him in his unwavering resolve to reposition the country and build a greater future for all.

It would be recalled that at the end of the meeting, Prince Dapo Abiodun was chosen to provide the needed leadership as Chairman of the Forum, while Professor Charles Chukwuma Soludo, the governor of Anambra State was appointed as the Vice Chairman.

The communique concluded that quarterly meetings of the Forum would be held and rotated among member states.

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