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Sanwo-Olu presents N1.1 trillion 2020 budget

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Sanwo-Olu presents N1.1 trillion 2020 budget

Lagos Governor, Babajide Sanwo-Olu has presented a total budget size of N1.168trillion for 2020 to the House of Assembly. The budget is tagged “awakening to Greater Lagos”.

The Governor presented the budget estimate on Friday, allocating N723.6 billion to capital expenditure and N441.8billion for recurrent expenditure, which represents a ratio of 62-38%.

The Breakdown of the budget shows that N167.81 billion of the recurrent expenditure will go for personnel costs and other staff-related expenses, representing 22.02% of the total budget. According to the Governor, the budget for the personal cost is within the acceptable wage policy, which benchmarks 25% for staff overheads in the budget.

Speaking on the budget, the Governor said, “the 2020 Budget will be supported by a Performance Management System that will ensure that, by December 2020, we shall achieve an optimal budget implementation when compared with previous years. This is in line with our commitment to transparency and accountability in the management of public finances.

“We have provided N11.8 billion as counterpart funds in preparation for various social impact schemes. In addition, we have made provisions for N7.1 billion this year, to provide for industrial hubs, parks, graduate internship programs and virtual markets for artisans. This is in support for Micro, Small and Medium Enterprises (MSMEs) which are the engines for both economic and employment growth.”

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L-R: Lagos State Governor, Babjide Sanwo-Olu, State Speaker, the Rt. Hon. Mudashiru

While further commenting on the budget, Sanwo-Olu noted that the proposed budget would help the State achieve a sustainable social investment and scale up private sector-led economic growth through investment in infrastructure and security. He also disclosed that it would improve civic engagement in governance and foster partnership with the Federal Government and the civil society.

“Lagos faces an existential threat, arising from the interplay of demographic and climate change. Lagos will continue to be a magnet for multitudes within and outside Nigeria, in search of jobs and economic prosperity. These levels of migration put a phenomenal strain on the physical and fiscal resources of the state.

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“In response to the perennial challenges of flooding in the metropolis, we have to triple the capital budget provision to tackle these observed problems from N3 billion in 2019 to N9 billion in 2020. We are embarking on massive desilting of major drain systems across the State next year.”

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Economy & Politics

National Assembly does not have power to replace constitution – Omo-Agege

The Deputy Senate President has stated that the National Assembly does not have the power to replace the constitution.

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National Assembly does not have power to replace constitution - Omo-Agege

The Deputy President of Senate, Ovie Omo-Agege, has stated that the National Assembly does not have the power to replace the constitution.

The Senator disclosed this at a meeting with the Alliance of Nigerian Patriots led by Amb. Umunna Orjiako on Wednesday. He was represented by his media aide, Mr. Yomi Odunuga.

READ: FG to inject over N198 billion on capital projects in power sector in 2021

Omo-Agege said what could be achieved was an amendment of the constitution by the National Assembly. He urged stakeholders to channel the demands of a new constitution towards constitutional amendment.

“I am not so sure that we as a Parliament have the power to replace the Constitution. We can only make amendments and it is explicit in sections 8 and 9 of the constitution on how we can do that and the requisite number of votes required.

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READ: Nigeria is the 14th largest producer of tomatoes in the world, second in Africa – NIHORT

“I say that because there are some top attorneys in this country, who for some reasons, keep saying that we don’t even need any of this, that we should just bring a new constitution. We can’t do that.

“What we are mandated to do by law is to look at those provisions and bring them up-to-date with global best practices, especially to the extent that it tallies with the views of the majority of Nigerians. So we are not in a position to replace this constitution, but we can only amend.

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READ: Commercial banks in frenzy as they seek N1.5 trillion boost

The senator also said that the Senate would look into issues like restructuring if there is a major demand for it from Nigerians and also the exclusive legislative list.

“But, like I said, most of the issues you have raised here, like zones replacing states, that’s another euphemism for going back to the regions. We will look into that if that is what majority of our people want.

“You talked about devolution of powers. The preponderance of views we have received so far is that those 68 items are very wide and need to shed some weight and move them to the Concurrent Legislative List.”

READ: Update: Buhari seeks power to freeze accounts, clamp down on money launderers

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What you should know 

  • Nairametrics reported last week, that Sokoto State Governor, Aminu Tambuwal, said any plan to restructure Nigeria and the Constitution must pass through legal due process from the National Assembly.

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Economy & Politics

Dapo Abiodun presents N339 billion budget to Ogun State Assembly

Ogun State Governor has presented a N339 billion 2021 budget to the State House of Assembly.

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The Governor of Ogun State, Prince Dapo Abiodun, presented the N339 billion budget for 2021 tagged “Budget of Recovery and Sustainability,” to the Ogun State House of Assembly.

This was disclosed by the Governor on Wednesday after he presented the budget proposal to the House. He added that the budget will remain focused on completing as many projects as possible.

READ: We are working to clear N124 billion backlog of export claims – NEPC

READ: Buhari presents N13 trillion 2021 Budget to National Assembly

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READ: Reps to support total reforms in aviation industry through legislation – Speaker

What they are saying 

Aggregate expenditure for the State Government is N339billion, with a recurrent expenditure of N162billion and capital expenditure of N177billion,” the State Governor said in his statement.

He added that the budget would be focused on project completion in the state.

READ: Sanwo-Olu presents N1.1 trillion 2020 budget

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The budget remains focused on the completion of as many ongoing projects as possible. The State House of Assembly would be presented with the most critical projects, which we must all work collectively to ensure they receive adequate funding,” he said.

READ: Lagos Rail Mass Transit: House of Assembly approves N153 billion for construction

He also said that the budget will provide suitable grounds for recovery from the obvious economic challenges of the current fiscal year, while ensuring that Ogun State’s local economy remains sustainable going forward.

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Economy & Politics

Gov. Wike presents 2021 budget worth N448.6 billion

Rivers State Governor has presented the 2021 budget worth N448.66 billion to the Rivers State House of Assembly.

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Budget, Oyigbo: We announced curfew to prevent ethnic clashes- Wike, #EndSARS: IPOB killed 6 soldiers and 4 policemen, burnt police stations - Wike

The Governor of Rivers State, Nyesom Wike, has presented the 2021 budget titled “Budget of Recovery and Consolidation,” worth N448.66 billion to the Rivers State House of Assembly for consideration.

According to a report by the News Agency of Nigeria, the budget represents more than 20% increase over the 2020 Revised Budget of N300 billion.

READ: FG’s unsustainable budget deficit and debt service cost

What you should know

  • The 2021 budget comprises the sum of N305.89billion budgeted for capital expenditure, while N142.78billion is earmarked as recurrent expenditure.
  • Of the budgeted sum for capital expenditure, which represents 68.18% of the total sum constituted; Administrative Sector, N87.7 billion; Economic Sector, N105 billion; Law and Justice, N1.7 billion; Social sector, N132 billion; and deductions/Loan repayments, N38 billion.
  • N82.9 billion is budgeted for provision of infrastructure including roads, bridges and the completion of flyover projects at Okoro-Nu-Odo, Rumuola, Rumuogba, and GRA junctions, all in Port Harcourt metropolis.
  • Out of the sum budgeted for recurrent expenditure, N76 billion is for personnel costs; N18.8 billion is for overheads and N47.7 billion will be for grants and transfers to the consolidated revenue charges.

READ: IGR: States generate N612.9 billion in H1 2020, dips by 11.7% 

What they are saying

Commenting on the budget, the Governor said: “The 2021 budget will also prioritise security and sustain existing efforts in combating insecurity and keeping residents safe and secure.

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“We will also deliver the Ogoni/Andoni/Opobo unity road, the Eastern Bypass dualisation, 6th and 7th flyover projects and the Wakama road, as well as all other ongoing rural roads in our communities and local government areas across the state.”

READ: N200 billion Unclaimed Dividend: Securities dealers reject FG’s plan to manage fund

READ: SEC says state governments have borrowed N900 billion from capital market

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What this means

With about 68.18% of the total budget allocated to capital expenditure, this is a pointer that the present administration is committed to continuing various capital and developmental projects aimed at transforming the state, advancing its economic and social growth, and positioning it as one of the frontline states in Nigeria.

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