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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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Eidel-Kabir: FG declares Monday and Tuesday public holidays

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The Federal Government has declared Monday 17 and Tuesday 18, as public holidays to mark this year’s Eid-el-Kabir celebration.

This is contained in a statement by the Permanent Secretary, Ministry of Interior, Dr Aishetu Ndayako, on Friday in Abuja.

She stated that the Minister of Interior, Dr Olubunmi Tunji-Ojo, who made the declaration on behalf of the Federal Government, congratulated all Muslim Ummah both at home and in the Diaspora.

He urged the Muslim Ummah to continue to imbibe the spirit of peace, kindness and sacrifice, as exemplified by Prophet Ibrahim (Peace be upon Him).

Tunji-Ojo also urged them to use the period to pray for unity, prosperity and the stability of the country.

The minister assured that the administration of President Bola Tinubu, was committed to safeguarding the lives and property of all Nigerians.

While wishing the Muslim Ummah a happy celebration, the minister advised all Nigerians to take responsibility in the resolve to hand over a prosperous Nigeria to our children.

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Tinubu to receive draft bill proposing regional govt system today

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…Afenifere chieftain unveils proposal for 8-region Nigeria, interim boundaries

…Coalition advocates new constitution in Nigeria’s Governance overhaul blueprint

…Union proposes retaining 36 States as provinces with reduced powers

By Sodiq Adelakun

President Bola Tinubu is set to receive a draft bill today that seeks to reintroduce a regional system of government in Nigeria.

The proposed legislation, titled ‘A Bill for an Act to substitute the annexure to Decree 24 of 1999 with New Governance Model for the Federal Republic of Nigeria,’ was authored by Akin Fapohunda, a chieftain of the Yoruba socio-cultural association, Afenifere.

The bill aims to establish a new governance model for Nigeria, which would involve a return to a regional system of government. If passed, the new laws would be cited as “The Constitution of the Federal Republic of Nigeria New Governance Model for Nigeria Act 2024.”

Akin Fapohunda, the author of the draft bill proposing a return to a regional government system in Nigeria, has announced that the bill will be transmitted to President Bola Tinubu on Friday.

Recall that this comes despite the House of Representatives’ earlier disownment of the bill, with its spokesman, Akin Rotimi, and the Chairman of the Committee on Rules and Business, stating that it had not been listed for deliberation in the ongoing review of the 1999 Constitution.

“I’m submitting my letter (draft bill) today but I will wait for seven days before releasing it to the public,” he said

Also, Akin Fapohunda, representing the Coalition of Indigenous Ethnic Nationalities, has unveiled a proposal to divide the country into eight distinct geo-political regions, complete with interim boundaries.

Speaking to journalists, Fapohunda outlined the envisioned regions, with the southern region encompassing Akwa-Ibom, Bayelsa, and Cross Rivers States, along with other ethnic communities.

The South Eastern region is slated to include Abia, Anambra, Ebonyi, Enugu, and Imo States, while the Western region would comprise Lagos, Ogun, Ondo, Osun, Oyo, and Ekiti States, with additional inclusion of Yoruba-speaking populations in neighbouring regions.

The Mid-Western Region would be composed of Edo and Delta States, potentially incorporating the Anioma people, while the Eastern Middle Belt Region would encompass several northern and central states.

The Western Middle Belt Region comprises Southern Kebbi, parts of Kwara and Niger States while the North Eastern Region will be made up of parts of Borno, Gombe, Bauchi, Jigawa, and Yobe States.

The North Western Region, according to the Afenifere chieftain, comprises Kaduna, parts of Kebbi, Kano, Katsina, Sokoto and Zamfara States.

Fapohunda said the coalition envisaged a two-tier government, federal and regions, adding that the latter would be at liberty to manage her affairs, “including the creation of sub-entities, based on the stipulations that are agreed upon and embedded in their respective constitutions.”

In its proposed governance stipulations, CIEN stated that “In the quest for re-configuration and downsizing, an option to consider might be to retain the present boundaries of the 36 States, as would have been adjusted, but to creatively downgrade the paraphernalia of political administration as follows:

“To introduce a new regional government framework with executive and legislative functions and bodies with the headship title of Premier.

“In the new dispensation, the present States (for example the six in the Western region) would be converted to provinces. Governance at this level shall be by Provincial Councils that integrate executive and legislative functions, with Chairman and Support Specialist Administrative Officers. The regions shall be at liberty to create provinces, subject to viability and self-sustainability.

“The present Local Government Areas are to be transformed into divisions, with divisional managers and specialist administrative officers; to operate as socio-economic development institutions. The new provinces shall also be at liberty to create divisions, subject to viability and self-sustainability.”

In the same vein, the Coalition of Indigenous Ethnic Nationalities has put forward a proposal for a new constitution, emphasising regional autonomy and decentralisation of federal power.

Among the key novelties outlined in the proposal is the freedom granted to regions to create, merge, or reconfigure their sub-political units without external interference, fostering a tailored governance approach to suit local circumstances.

The coalition envisions a streamlined public administration, with regions aiming to reduce the cost of civil service to a fraction of generated revenue.

Central to the proposed constitutional framework is the establishment of a unicameral federal legislature, wherein members are elected directly by their respective regions to represent their interests in the national capital, Abuja.

Furthermore, the coalition advocates for a leaner federal government, proposing a maximum of nine ministries and ministers, drawing parallels with the streamlined cabinet of the United States.

The return to a parliamentary mode of government, with built-in statutory rotation of regional leadership, is also highlighted as a crucial element in ensuring equitable representation and governance across the country.

“Regions and sub-regional entities are to be reconfigured such as would reduce the cost of public and civil service administration to less than 20 to 30 percent of generated revenue.

“In drafting their Constitutions, the peoples of the respective regional territories will take a cue and also dismantle any arrangement or configuration that will favour the politicians and the political class; with a focus on freeing resources for true development.

“A uni-camera federal legislature comprising members that are elected at the discretion of the regions for which they would be representatives at Abuja.

“Decentralisation of federal power in favour of not more than 10 regions on which there is a general national consensus, rather than the presently unwieldy number of 36 States. These old States are inconsequential indeed in being a viable unit of a truly federal system of government.”

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Lagos GDP grew by 50% in five years under my administration — Sanwo-Olu

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By Sodiq Adelakun

The Lagos State Governor, Babajide Sanwo-Olu, has said the Gross Domestic Product of Lagos, in the last five years under his administration, had risen by almost 50 percent, surpassing the size of the GDPs of over 40 African countries.

The responsible factors, the governor said, could be linked to the unending effort by his administration to improve the Ease of Doing Business and the decision to leverage the technology and entrepreneurial abilities of its population for economic activities.

Sanwo-Olu said Lagos had grown from being a state in deficit in the military era to becoming a hub for investment and technological advancements.

The governor stated this while delivering the closing speech at the ongoing 3rd AfriCaribbean Trade and Investment Forum (ACTIF 2024) in Nassau on the theme: “Global Africa, Global Lagos: The Role of Sub-Nationals in Driving the Global African Agenda.”

“Lagos is an example of a unique African success story, shaped by an interesting mix of advantages and challenges. It is the smallest of Nigeria’s 36 States, yet is responsible for more than a third of Nigeria’s entire GDP.

“Lagos has grown to have a GDP that is greater than the GDPs of all but seven African countries. In the last five years, under my leadership, we have seen an almost 50 per cent increase in our GDP,” Sanwo-Olu was quoted as saying in a statement on Thursday by his spokesman, Gboyega Akosile.

“Lagos presents a significant context on how sub-national governments are vital in writing new stories of development and advancing the economic agenda of the continent. I am proud to say that we in Lagos State have indeed mastered the art and science of Public-Private Partnerships. Having pioneered this private sector-led development in Lagos, we are now exporting that template to other States across the country.

“Our growth stories speak to the importance of African solutions and African capacity for tackling African problems. As we work towards accomplishing our aspirations, it is clear that sub-sovereign entities, such as cities, states, provinces, regions, and municipalities, can be instrumental in translating African countries’ high-level goals into tangible outcomes. It is at this sub-national level that a lot of the most remarkable reforms and transformations are playing out,” He reiterated.

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