Ongoing Lagos international airport road expansion and the Oshodi transport inter-change are listed among major projects to be funded to completion as Governor Akinwunmi Ambode finally presented the Lagos State’s 2019 budget estimate of N852.316 billion to the House of Assembly yesterday.
The two projects which are in their advanced stages of construction, upon completion, would impact positively on Nigeria’s international image and add to the quality of lives of the citizens with respect to public transport system in Nigeria’s economic capital.
The Oshodi transport inter-change project would consolidate about 13 intra-city and inter-state bus parks into three multi-storey terminals, providing standard facilities including shopping mall, waiting area, loading bays, ticketing stands, drivers’ lounge, parking areas, restrooms, accessible walkways and pedestrian sky-walks linking all the terminals.
The budget presentation, Tuesday, came after nearly two months of back and forth arguments between the executive and legislative arms of the state government, leading to a threat last week by the lawmakers to impeach Ambode. The rift was eventually resolved on Sunday following the intervention of the leadership of the All Progressives Congress (APC) and the Governor’s Advisory Council (GAC) led by Bola Tinubu, a former governor of the state (1999-2007).
The budget consists of N462.757 billion capital expenditure and N389.560 billion recurrent expenditure components, representing 54/46 capital/recurrent ratio.
The projected total revenue in the budget, according to Ambode, is N775.231 billion, of which N606.291 billion is expected to be generated internally. Also, N168.940 billion is expected from federal transfers while a total of N77.086 billion would be sourced through deficit financing with the state’s medium term expenditure framework.
Giving details of what informed the budget size, Ambode said the performance of the 2018 budget of N1.046trn as at November 2018 stood at 60 percent owing to reduction in revenue projections, while the total revenue stood at N530.192 billion.
“In the outgoing year, however, we experienced a reduction in our revenue projections, which affected our projected performance and our desired implementation of the 2018 budget,” Ambode said.
“The overall budget performance as at November 2018 stood at 60 percent/N574,206 billion with actual cumulative total revenue of N530,192 billion/64 percent; capital expenditure closed at N311,930 billion/49 percent and recurrent expenditure performed at N262,276 billion/82 percent,” he said.
Ambode further noted that in preparing the 2019 budget, his government was “very mindful of the out-going year performance, the yearnings of our people and the fact that we are going into an election year”.
“Consequently, we are today presenting a budget that will be all-encompassing, reflect the level of resources that will be available and with special consideration to the completion of major on-going projects in the state,” he said.
While outlining the key components of the 2019 budget, the governor said priority was given to completion of major infrastructure projects and smooth transition to the next administration.
The governor, who did not secure his party’s second term ticket, will hand over to a new administration on May 29, 2019.
He said his administration in the last four years had focused on nine key areas which include security, transport/traffic management, economy, tourism and agriculture, housing, education, health, infrastructure, water, wealth creation, skill acquisition/microfinance, e-governance and human capacity building, to which massive investments were made.
Mudashiri Obasa, speaker of the House of Assembly, while receiving the budget, said the lawmakers would properly scrutinise the estimate and pass it as required by law.
The state commissioner for economic planning and budget is expected to give sectoral breakdown of the budget estimate in the coming days.
JOSHUA BASSEY
