Emmanuel Thomas, Lagos
September 22, 2015 – The Lagos State House of Assembly yesterday approved the sum of N25, 440,253,332bn as amendment to the N489.690 billion for the 2015 fiscal year.
The Lagos State Governor, Mr. Akinwunmi Ambode had requested that the 2015 budget be re-ordered by N23.97 billion to enable him carry out projects in the state.
The House had set up an Ad-Hoc committee headed by Rotimi Olowo, Desmond Elliot, Ibrahim Layode, Saka Fafunmi, Fatai Mojeed, Oluyinka Ogundimu, Kazeem Alimi and Rasheed Makinde to look into the governor’s proposal.
The new approval represents a difference of 1.470 billion from the governor’s proposal.
Ambode wanted the sum of N23.97bn to be re-ordered. Out of this, the sum of N18.278bn was needed for capital projects, while N5.697bn for recurrent expenditure.
The approval of the House presently stood at N19,743,164,323 for capital expenditure and N5,697,089,009 for recurrent expenditure bringing the total approved sum to N25, 440, 253, 332.
The governor had stated that the recurrent expenditure presently stood at 97%, while capital expenditure performed as low as 29%, saying there was the need to follow the tradition of budget performance of 51 percent for capital expenditure and 49 percent for recurrent.
Some of the projects that would need attention as contained in the proposal included, construction of pedestrian bridges at Ojodu Berger and Okota, construction of fly-over bridges at Ajah Roundabout and Pen Cinema, Agege.
Others included, the construction of Blue Light Rail project; continuation of the construction of Lekki-Epe Expressway; acquisition of emergency/rescue helicopters and heavy duty equipment (cranes and forklift) and for Employment Trust Fund and Wealth Creation Programmes.
The letter read in part, “It is worthy of note that we are constrained by the fact that there are no new revenue sources for the remaining months of the year, and as a result we would not be in a position to propose a supplementary Budget. Hence, the recourse to a re-ordering of the Y2015 Budget.
“The budget as at 30th of June 2015, had a 63 percent, overall performance; a far cry from the set target of 100 percent. When further analysed, the recurrent expenditure stood at 97 percent, while capital expenditure was at an abysmal 29 percent performance, portending a 24:76 capital\recurrent ratio.
“This level of per has made it imperative to go back to the drawing board to structure a more conscientious approach to tilt our total capital investment in the remaining months of Y2015 in order to meet the target capital\recurrent of 51:49,” Ambode said.
The House however called on the Ministry of Economic Planning and Budget to henceforth do a quarterly review of approved budget to enhance effectiveness and determine level of compliance by the Ministries, Departments and Agencies (MDAs).
According to the letter, the Governor listed the reasons for the re-ordering to include construction of a pedestrian bridge at Ojodu Berger, construction of fly-over bridges at Ajah Roundabout and Pen Cinema, Agege.
The letter added that the budget re-ordering proposal would cater for the continuation of the construction of blue light rail project, continuation of the construction of the Lekki-Epe Expressway and acquisition of emergency/rescue helicopters and heavy duty equipment (cranes and forklift) and for Employment Trust Fund and Wealth Creation Programmes.
