Press Releases

Fashola Presents N405 Billion Y2009 Budget To House Of Assembly

Nov 10, 2008 - Lagos State Governor, Mr. Babatunde Fashola (SAN) on Monday presented the 2009 budget tagged Budget of Accelerated Growth totalling N 405Billion to the State House of Assembly.

Speaking while presenting the budget estimates at the State House of Assembly, Alausa, Governor Fashola said the 2009 budget has been carefully planned to sustain the great leap budget 2008 and ensure the acceleration of the tempo of infrastructural development of the State.

He said the focus of the budget was on sustenance of law and order in the State, promotion of the justice reform system and protection of life and property of the people. It is also focused on promoting the poverty alleviation initiatives of the State Government, Agricultural development, sustenance of Education, Healthcare, payment of pensions, and strengthening of th e State’s Public Service.

The Governor explained that this is also to ensure the furtherance and realization of the Government policy thrust of poverty eradication and sustainable economic growth through infrastructure renewal and development and to ensure fiscal responsibility.

He said the 2009 budget estimates is an improvement of N1.555b when compared with the budget estimates of last year which stood at N403.401b

Governor Fashola stated that the budget is composed of a capital expenditure profile of N245.716 Billion as against a recurrent expenditure of 159.284billion thus maintaining a 60:40 ratio as it was in 2008.

The budget of Accelerated Growth also has a revenue projection of N288, 963 billion made up of Internally Generated Revenue (IGR) of N208.791billion, Federal transfers of N76 billion and other Revenue (Dedicated of N4.174 billion.

Governor Fashola explained that the recurrent expenditure estimate is N159.284 billion made up of Personnel Cost of N42.835 billion along with a Pension related provisions of N12.509 billion overhead cost of N80.196 billion, subvention of N17.5 billion and a Public debt charge of N3 billion.

He listed the Sectoral component of the Capital Expenditure as Economic N109.155 billion (N44.4%); Social N43.945 billion (17.88%), Environment N42.735 billion (17.32) and Administration N49.881 billion (20.30%).

As at the end of the first quarter of last year, the overall performance of our Budget was 60%; at the second quarter it was 70.65%; while at the third quarter it was 71.145. The trend of our Budget performance has been progressively upward and we are optimistic to close the year with a performance level of at least 80%.

“We have run government like a public corporation and closely monitored the implementation of the budget by holding a fortnightly revenue meeting from January to date and a quarterly review meeting of performance and enforced budgetary compliance”, he added.

In terms of performance of revenue for the outgoing year, Governor Fashola told the audience that a total ordinary revenue of N158.714billon was realized out of the expected cumulative total of N178.074 billion representing an 89.13% performance.

He explained that out of this, Internally Generated Revenue performed at 80% or N90.875 billion while dedicated revenue performed at N6.872billion (159.48% )and Federal transfers performing at 101.06% having contributed N60.967billion out of the anticipated cumulative of N60.327billion.

The Lagos State Governor also said a total sum of N 96.580billion representing 80.67% was recorded as recurrent expenditure at the third quarter period with the Total Personnel Cost recording N30.393billion while overhead cost amounted to N39.091Billion while N6.028bn (53.20%) was expended as subvention to parastatals and the sum of N17.444Bn (104.87%) as public debt charge.

Governor Fashola said during the period under review the State Waste Management Authority (LAWMA) acquired 50 new operational vehicles while another 40 new roll on roll off trucks have also been acquired by the agency in addition to commencement of construction and equipping three out of the planned ten transfer stations at Simsim, Ogombo and Yaba.

He added that the progress so far made in making Lagos cleaner demonstrates what can be achieved, saying we need to keep the people employed to give us a cleaner city and households can help by not patronizing cart pushers and promptly paying refuse collection bills.

He listed the following as being among the core areas that would receive the attention of the government in the 2009 budget; infrastructure development on roads and bridges, Upgrading and maintenance of existing roads, bridges, implementation of integrated mass transit programme, Comprehensive emergency management and flood control, greening, and beautification programme.

Others are systematic physical planning for sustainable development, improved solid waste management system through development of sanitary land-fill sites and transfer loading stations, Sustaining security initiatives, (law, order, and justice sector reform), Construction and rehabilitation of schools including laboratories and libraries and Teachers’ welfare enhancement.

Governor Fashola also named Community –based vocational education, Improved access free and quality healthcare, Affordable mass housing schemes, state-sponsored home ownership mortgage scheme, Empowerment of farmers/fishermen for food production and processing, Expansion/construction of new micro-water schemes, Tourism development, social and youth empowerment through the renewal of sports and recreational facilities, Facilitation of liberalized micro-finance scheme and Integrated rural development as other areas that will receive major attention in the 2009 budget.

The Governor also listed some of the achievements recorded by his administration to include construction and rehabilitation of over 400 roads whose contracts have been awarded and contractors already visibly at work in various locations, listing some of them to include reconstruction of Murtala Mohammmed way(Yaba-Iddo), Herbert Macaulay Way, Okota- Itire Overhead Link bridge and road works, Ijegun –Isheri Oshun Isolo roads, as well as the dualisation of the Mobil Road and Wilmer Crescent in Apapa.

On transportation, Governor Fashola said the fleet of the high capacity BRT buses has been increased from 126 to 246 with a capacity to transport 180,000 persons daily, adding that during the year contracts have also been awarded for rehabilitation and construction of jetties, dredging of waterways and other infrastructure in readiness for the implementation of an efficient private sector operated ferry services.

He also informed that road improvement have been undertaken in areas like Odo- Iya -Alaro underpass, descent of Anthony bridge, expansion of Town Planning Way, additional lane at Otedola underpass, improvement of Old Toll gate road and the provision of a u-turn to link Ahmadu Bello Way through Army Officers Mess, Onikan to relieve the gridlock around TBS through Marina.

Governor Fashola also sought the cooperation of all and sundry to understand that the use of siren constitutes an unacceptable slur on the traffic management system of the state and that everyone needs patience to negotiate through traffic and not siren as he has successfully demonstrated.

In terms of the Eko- Micro finance initiative, Governor Fashola said the first set of 5000 beneficiaries have been given credit worth N850 million to start new businesses or expand existing ones while another set of 4500 graduates of our vocation and skills acquisition centers were equally empowered through the scheme to set up small scale businesses.

In terms of job creation as a major tool for poverty eradication, Governor Fashola said several people have been provided employment among whom are 5000 employed as street sweepers, over 2000 employed by the PSP operators for solid waste management, over 2000 employed in the massive drainage and canal clearing works, about 3000 directly employed in the various greening and beautification projects including those employed in the supply chain.

He listed other job creation exercises embarked upon as including about 2000 drivers employed for the BRT operation, about 500 directly engaged in the Agricultural initiatives like Rice-for-Jobs, about 1000 additional staff employed by LASTMA and the Lagos State Fire Service by end of 2008, over 9000 self-employed persons graduated from the state’s Skills Acquisition programmes and received financing under the Lagos State Micro-finance Initiative,

Continuing, Governor Fashola over 10000 have been employed directly as construction workers on the various roads, bridges and housing construction projects, the upsurge in public construction works as well as some new regulations have created job opportunities for surveyors, architects, valuers, engineers, accountants and lawyers and the under the state’s vacation job programme, about 10,000 young people were employed on our Enterprise Registration and Identification (ENTRIDA) scheme during the last long vacation period.

He reiterated his clamour for the provision of a special grant for Lagos to enable her maintain and improve the infrastructure that services the national economy saying this is not a favor but a right which Lagos deserves as a home to all ethnic people.

He called on the Federal Government to expedite action on the implementation of the power sector reform since uninterrupted power supply is a necessary condition for economic recovery and growth, promising that Lagos would do everything to support the process.

He expressed his appreciation to members of the State House of Assembly, the Action Congress Party, royal fathers and people of Lagos State for their unflinching support and opportunity to serve the state, promising to intensify the pace of work in the days ahead.

Said he: “I will be there at all times you look for me, never letting you down, giving my best at all times to deliver on your hopes and aspirations and I hope that every time I look behind me, I will find you there, because I can only lead, if I am being followed by all of you”.