Governor of Lagos State, Mr. Babatunde Fashola on Wednesday proposed a budget of N489.690bn for the year 2014 before members of the State House of Assembly.
The budget proposal, which he described as zero-deficit, is made of Recurrent Expenditure at N234.665bn and Capital Expenditure at N255.025bn with a Capital to Recurrent ratio at 52:48 as against 58:42 in Year 2013. According to Fashola, this is a budget of consolidation.
“As I promised last year about reducing our deficit, a zero deficit financing requirement is proposed for Y2014,” he said, adding that General Public Service takes N100,215,966,990bn or 20.47 per cent, Public Order and Safety takes N17,977,368,027bn or 3.67 per cent, Economic Affairs takes N160,046,436,169bn or 32.68 per cent, Environmental Protection takes N39,727,711,248bn or 8.11 per cent, Housing and Community Amenities takes N50,537,201,984bn or 10.32 per cent.
Also, Health takes N37,812,553,057bn or 7.72 per cent; Recreation, Culture and Religion takes N3,482,081,806bn or 0.71 per cent billion, Education takes N77,423,827,872bn or 15.81 per cent, and Social Protection takes N2,466,309,939bn or 0.50 per cent.
Delivering the budget presentation speech at the chambers of the Assembly, Fashola said that every time he has had the privilege to present a budget for the State, he did so with a lot of pleasure and with a deep sense of responsibility for the expectations that the budget raises for the people that things will get better.
“Year after year, we have met those expectations and things have got better. That feeling of pleasure and the sense of responsibility is no less different today as I present our budget proposals for 2014,” he said.
“As far as responsibility goes, it is incumbent upon me to report how far we have implemented the 2013 budget as proof, if one is needed, that budgets are important for us, and that we do our best to keep the promises that we make.
“Many will recall that we were the first Government at any level to begin the quarterly reporting of budget performances in this democratic dispensation and this year has not been an exception since we started the practice in 2007.
In the first quarter of this year, I reported a budget performance of 61 per cent, while the second quarter performance was 83 per cent and the recently reported third quarter performance was 70 per cent giving us a cumulative aggregate performance of 71 per cent.”
He expressed the commitment of the government to improving upon the fourth quarter performance and ultimately the total year 2013 budget performance, but gave explanations on why the performances he just reported were not exceeded.
“Let me start by saying emphatically, that budget implementation in Lagos is no longer a matter of capacity. We have a highly resourceful and well-motivated workforce in the public service; budget implementation is constrained by the limitation of financial resources. As our population continues to grow, the provisions that we require to support them and meet their expectations are also growing. Regrettably, the financial resources are not growing at the rate of our people’s expectations.
“While I salute those who pay their taxes and whose contributions have helped to continuously develop our state by taking our destiny in our hands, I urge those who are yet to start paying to do so. It is a commonwealth that gives everybody a chance to realize their aspirations. It requires a common contribution to make it sustainable. While our tax contributions have helped to reduce our dependence on the Federal Government monthly FAAC remittance, to about 35 per cent of our financial needs, that 35 per cent is still critical. The recent inefficiencies that States have experienced in the process of Federal Government agencies accounting for revenues and the consequent delays in remittances owing to disputes over accounts have affected all States in different degrees.
“While salaries were delayed in other states; happily, that did not happen here, but the effect was felt in a slight reduction of our third quarter budget performance. This state of affairs, of delays in the discharge by Federal Government agencies of their responsibilities compels me to make a comment about the recent announcement by the Federal Government that a $200m World Bank loan had been approved for Lagos to fund capital projects such as the Light Rail, Adiyan Water Works and so on.
“While I thank them for finally giving the approval, it is instructive to contextualize the timing of the approval. You might all recall that in 2010 when I presented the year 2011 budget, I announced that we had negotiated a World Bank loan for $600m to fund a three-year medium term expenditure framework for years 2011, 2012 and 2013 which required Federal Government approval.
“Although the approval for the loan was given then and the year 2011 first tranche for $200m was released in that year, the year 2012 and 2013 tranches were frustrated by Federal Government agencies. It is the year 2012 component and year 2013 component that is now being approved in the last quarter of 2013.
In truth and in fact, our state’s development was held up and slowed down for two years.
“Progress on the Rail was held back, supply of additional 70 million gallons from Adiyan Water Works was slowed down, progress on Lagos Badagry Expressway was slowed down. Improvement in the quality of life of Lagosians was slowed down. But we did not sit idly by and moan. We are the Centre of Excellence. Our tax payers’ contributions were our inspiration. We went to the financial market to raise money, knowing that our state is solvent. So the projects such as Lagos Rail, Adiyan Water Works have started and the Lagos-Badagry Road progresses, even though the approval is just coming.”
Fashola lamented that the state has had to borrow money at shorter tenures of seven years and higher interest rates of 17 per cent and 14 per cent, instead of 1 per cent and 40-year tenure, which the delayed World Bank loan offered.
“But nevertheless, our spirits are high, the high interest costs notwithstanding; I am pleased to report progress on these construction sites which provides employment for 1000 workers on the rail project and 500 workers at Adiyan Water Works. The promise of reliable rail transport system for Lagos and an additional 70 million gallons per day of water when Adiyan is completed makes it all worthwhile.
‘Ti eni be igu loju. Igi ma ru we’.
“As if all these were not enough, FERMA, another Federal Government agency, is threatening to start collecting fuel levies, which is a matter within the residual revenue authority of the state. As I have said before, we will resist this incursion by taking legal action to stop the desecration of our fiscal federalist principles.
“Distinguished ladies and gentlemen, in spite of the slowdown, whether by commission or omission, I am pleased to report that ‘Eko o ni baje!’ Our dear state is making progress on all fronts. Except for our cynical opponents who need ‘jigi Bola’ to see the progress, the overwhelming consensus within the state, outside the state and all over the world, is that Lagos is working. Our commitment to Power, Agriculture, Transportation and Housing is manifesting incredible results.
“We have just commissioned the 10mw Alausa Power Plant, which I promised in my budget speech last year. In the aftermath, we have de-commissioned over 120 generators and our secretariat is now on its own dedicated electricity power, run on clean gas fuel. It is the first government secretariat that I know of in our country that has its own dedicated IPP. We have also extended street lighting earlier in the year to Ikorodu Road from Jibowu to Anthony, as we have done across Lagos including 12 streets in Alimosho, and on Carter Bridge to mention a few.
“In total, we have now provided about 70km of street lighting across Lagos, to improve safety and stimulate our night economy.
We have dedicated the month of October as our Energy Month, during which we have commenced an energy saving initiative and just yesterday we flagged off a clean cooking energy initiative of Liquefied Petroleum Gas (LPG) to reduce wood cutting.
“We are in the process of converting the remaining functional generators to LPG fired generators, which will save us 50 per cent in fuel costs. Pole by pole, IPP by IPP with Lekki and Ikeja GRA IPPs to come next year, we are committed to lighting up Lagos. In the area of Agriculture, we are gradually inching towards our objective of improving on food security. The governor of Ogun State graciously approved land for us pursuant to my request as I promised in 2011.
Although I told you that our rice cultivation moved from 20 hectares to 250 hectares and that we were targeting 500-hectare cultivation, I am pleased to report that we are now cultivating 850 hectares of rice and we are milling at our Imota Rice Mill.
“From our farm in Araga, in Epe, we are now producing 150,000 eggs per day, translating to over 50 million eggs a year. Our fish and poultry farming programmes are empowering young and old farmers and agriculture has become a business as well as a strategic security initiative in our state. We are determined to also improve the quality of nutrition available to our citizens especially beef. Accordingly, the Ministry of Agriculture is acting appropriately to restore best practices to cattle rearing, slaughter and processing, including the sanctioning of operators of illegal abattoirs. We are not only enforcing, we are also training. This is why we sponsored 35 cattle dealers and butchers in Oko-Oba Abattoir on a training excursion to Kenya and Bostwana to sensitize them about the vision for cattle and beef production standards that we think our citizens deserve.
“As we embrace these standards, things can only get safer, businesses can only get stronger and opportunities will certainly expand for jobs and jobs seekers, if we move from sub-optimal practices to global best practices. As we deal with increasing capacity in the production of carbohydrates sources such as rice and cassava, and protein sources such as fish, poultry and beef, fruit and vegetable production are also increasing within the State in Araga Epe and from our farm in Osun state.”
According to the governor, Lagos is also providing ready sales outlets and guaranteed market in farmers marts, which first started in Alausa and has now extended to Ajah and Surulere with a further three coming up in Shomolu, Ikorodu and LASU. He added that public transportation, the state’s biggest challenge, is by many parameters one of our biggest successes, as the history of the world shows that many cities and states often address one major transport solution at a time.
“The Boston Road Tunnel, the Mumbai Mono-Rail and the Madrid Bypass Calle 30 are examples of transport solutions individually undertaken in cities.
In this area, our state has set an unprecedented record of five simultaneous transport solutions undertaken by one government, from the 40.5km Lekki-Eti-Osa Epe Expressway, to the 61km Lagos Badagry Expressway, the 13.5km Mile 12-Ikorodu Expressway, the 27km Okokomaiko-Marina Lagos Blue Line Light Rail; to the ferry terminals in Ipakodo, Osborne, Badore, Mile 2-Ebute Ojo, it is obvious that your government has its hands full and remains committed to developing first class multi-modal transport solutions befitting of the economic and financial capital of West Africa. In the area of traffic management, about 2,406 personnel of LASTMA have been in intensive training for almost one year, and have written competence examinations and they are now set to graduate with a new ethos to traffic management.
“Junction by junction, the number of traffic light installations are increasing and kilometer by kilometer, lane marking and traffic signs are appearing on our roads to make motoring a safer experience. We are encouraged that these solutions are working because of the feedback we get from citizens. On Friday 25th October 2013 a citizen sent me a text message saying: ‘The traffic light at Ojuelegba has been adjusted. No more hold up.’ As far as road repairs are concerned, the Public Works Corporation is building three new asphalt plants in Ojodu Berger, Ikorodu and Ajido Badagry to increase the speed of response to repair potholes; and the Ministry of Works is currently executing over 200 inner city road projects, which I promised in my budget speech last year.”
While he stated that it is impossible to list all the roads in the address, it was important to mention completed or ongoing works, such as:
Ago Palace Way in Okota
Salabiu Olanrewaju in Epe
Ado Kekere in Ajah Badore
Medical Road/Kodeshoh in Ikeja
Igi Olugbin in Somolu
Adetola Road in AgudaSinari Daranijo Street in Victoria Island
Glover Road in Ikoyi
Isaac John/John Ogunnaike in Ikeja
Balogun Amodu/Alhaji Dodoyowa in Ejirin Epe
Awolumate/Oguntande Street in Ifako Ijaiye
Showonuola Street in Agege
Akinola/Victor Fagbemi/Kollington/Imulokanle in Alimosho
Okusanya/Kufeji/Idowu Williams/Olaniyi at Ifako Ijaiye
Roundabout to Moshalashi/Ipaja/Ayobo Road in Alimosho
Bamgbose/Lewis, Alakoro, Marina/Kosoko Roads in Lagos Island
Orile Ilasan/Iroko Awe Road in Eti Osa
Continuing, the governor said: “In addition to these, there are bridge works in Ajao Estate, Agiliti, Tedi and Ijegun which are at different stages of construction and making progress towards completion. I have also recently approved the commencement of another 25 roads and as these roads and bridges are being completed, we expect to see improved connectivity and improved journey times.
Happily, the Lagos Traffic radio continues to remain the City’s favourite source of advance traffic information, while the Lekki-Link Bridge has achieved its iconic design purpose by becoming a favoured destination for residents and visitors alike and in the same vein is successfully performing its travel time reduction objective.
“In response to public appeal, and after extensive consultations, our party the APC and our government have acquired the concession rights to the Lekki-Eti-Osa Expressway with the approval of the House of Assembly and plans are underway to complete the due diligence and takeover of the assets and to complete the road.
I am also happy to report that one year after its implementation, the Traffic Law has recorded huge successes in its life and property saving objectives.
Traffic accidents have reduced from 646 reported accidents in August 2012 to 118 reported accidents in July 2013, and deaths from motorcycle accidents have reduced from an average of 12 per month to one per month and indeed no deaths were recorded in August, September, and October.
“We are concluding plans to implement the next phase of the Law, and we have been working with the Transport Unions to sensitize them. But before I move to housing; a little but serious word must be said about the Traffic Law.
Let me reiterate that out of over 10,000 roads in Lagos, the law restricted motorcycles from plying only 475, which are highways, if such motorcycles were not up to the 200 cc capacity. The law also provided that in the over 9,000 roads where there is no restriction, the riders must wear safety helmets and not carry more than one passenger.
“While I must commend the operators for largely complying, I cannot say the same for a few law enforcement agents and few military personnel who have either turned enforcement into an extortionist exercise for money or have seen themselves as above the law by violating our traffic laws and BRT Laws. Let me say to them clearly, that it is bad enough if law enforcement personnel violate the laws they are constitutionally paid to enforce; it is the height of impunity if they do so in uniform. That uniform is the symbol of the authority of the state and it is funded from tax payers’ money. I have news for those bad eggs who give law enforcement a bad name in this country. We will bring you to justice and make examples of you; before you bring dishonour to these timeless institutions that have produced officers and true gentlemen.
“In the area of housing, I will not take more time than is necessary. I will only state that the LagosHoms programme is on course. Many of our housing units are making progress on 15 different construction sites, employing a total of 7,757workers, in Shitta, Gbagada, Ajara, Ilupeju, Sangotedo, Igbogbo, Mushin, and Omole to mention a few. At least 3,192 housing units will be added in the first quarter of 2014 to the already completed 1092 units.
“We intend to commence more developments to ensure that there is no shortage of supply once we start the allocation process. Apart from Power, Agriculture, Transport and Housing, we have not relented in other sectors. Our commitment to improving on the successes we have made in the area of security remains at an all-time high. We are consistently breaking up criminal gangs, arresting their members, recovering illegal arms and effecting seizures of hard drugs.”
