In recession, Lagos increases budget by N150bn

The 2017 budget of Lagos state has an increase of N150 billion compared to the 2016 appropriation bill.

The budget, which is also the biggest for any Nigerian state ever, was presented to the state house of assembly by Akinwunmi Ambode, governor of the state, on Tuesday.

Ambode told the assembly that the budget proposal of N813 billion 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,” Ambode said.

“The state government will embark on the Urbanisation of the Marina axis, Waterways Channelisation, establishment of more parks and gardens as well as the Community Sports Centres and Stadiums in different locations across the state.”

Giving the key components of the budget, 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 Muhammed 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.

“We will fully implement the medical health insurance dcheme 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,” 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,” he said.

Giving a sectoral breakdown of the 2017 budget estimates, Akinyemi Ashade, commissioner for finance, 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 programme and a combination of internal and external loans.