December 21, 2015 – The Lagos State House of Assembly has committed the bill on Wealth Creation to the House Committees on Finance and Job Creation, with mandate to look into some grey areas for subsequent passage.
Recall that the State Governor, Akinwunmi Ambode had forwarded the Bill on Wealth Creation to the Speaker, Mudashiru Obasa with a view to addressing the alarming rate of unemployment in the state. Majority Leader, Sanai Agunbiade moved the bill which has passed through second reading and seconded by another member, Bisi Yusuff.
Leading the debate, the Chairman House Committee on Finance, Oluyinka Ogundimu who disclosed that the objectives of the Bill were embedded in section 2 said it was meant to provide financial support for residents of the state on job creation.”
The Fund, according to Ogundimu would be headed by a chairman and Executive Secretary which would be managed by Commissioner for Wealth Creation and his\her counterpart from Finance or their representatives.
The lawmaker pointed out that for the 2016 budget to perform optimally, it would require the proper implementation of the Bill if eventually passed into law, saying 60 percent of the budget would be financed through Internally Generated Revenue (IGR).
He explained that to get enough IGR to finance 2016 budget, job creation would be paramount in order to have more people that would pay taxes. Also speaking, the Chairman House Committee on Wealth Creation, Sola Giwa said the essence of the Bill was to open up entrepreneurial skills of the people.
On his part, Rotimi Olowo said part of the most interesting aspect of the Bill was that interest on the loans that attracts 3 percent for administrative purposes.
However, the Chief Whip, Rotimi Abiru stated that “it is not expressly stated in the Bill the method of disbursement and the way to recoup the loans.”
David Setonji said membership of the Board should be spread. According to him, “we should not limit it to metropolis. I think ‘IBILE’ should be spelt out.”
Gbolahan Yishawu canvassed for insurance on the loans, saying the loans must be insured in case beneficiaries were unable to pay back.
Bayo Osinowo explained that the tenure of the chairman of the Board would have to be reviewed since it would be a fund of N26bn over a period of four years, four year-tenure should be looked into.The two Committees, Finance and Budget were directed to submit the report on December 31.
