2009 Budget Speech - Conclusion

Budget of Accelerated Growth

Nov 10, 2008 - We implemented the Y2008 budget within the context of very unfavorable macro-economic variables. These include persistent inadequate power supply, the attendant 2.1% drop in industrial production over the corresponding period in 2007 and a double digit inflation rate of 12% according to the CBN. I must however note with satisfaction the supportive disposition of the Federal Government, particularly the presidency, to progress and development in Lagos State.

The nation recorded marked increases in oil revenues occasioned by unprecedented surge in oil price spurred partly by disruptions to oil production in the Niger Delta region. Yet, according to the Human Development Index, Nigeria was placed 158th of 177 nations and remained classified as a low human development country with HDI value of 0.470. Our challenge is to translate the huge oil revenues into practical improvements in the lives of our people as well as do all that is possible to ensure that the global food crisis and the crisis in world financial markets do not compound the problems of our economy.

Indeed, as a nation we need more than ever before to put on our thinking caps and systematically plan our way out of poverty and underdevelopment at this critical point in world history. The fall in global oil prices will without doubt affect our revenue earning capacity given our excessive dependency on oil as the country’s major revenue earner. It is likely that the intensification of the search for alternative energy sources in the west will limit our future capacity to earn jumbo revenues from oil. Now therefore is the time to begin to plan for a future without oil. The global financial and economic melt down will indeed negatively affect financial flows to Africa in terms of loans, aid, investment and trade. But this cannot be an excuse to throw up our hands in despair or despondency. If countries without oil or other natural and mineral resources can break out of the vicious cycle of poverty, we surely can. All we need is courage, character, conviction and creativity.

The evident deepening of national poverty inevitably implies further pressure on Lagos as more people flock to the state from other parts of the country in quest of a better life. Yet, as crucial as Lagos is to the national economy, the state receives no compensation for the enormous responsibilities she bears on behalf of Nigeria. The revenue currently allocated to the state from the Federation Account clearly does not appropriately reflect the enormous contributions of Lagos to the national coffers through VAT, the Petroleum Tax Fund, the Education Tax Fund and the huge revenues generated at the Lagos ports at tremendous cost to our environment and infrastructure. We will continue to advocate that Lagos be given a special grant to enable her maintain and improve the infrastructure that services the national economy. This is not a favor to Lagos but a right which she deserves as a home to people from all ethnic groups in the country. The earlier it is realized that, as the dynamo of the national economy, every investment in the infrastructure of Lagos is an investment in rapid economic growth for Nigeria, the better for us all.

I call on the Federal government to expedite action on the implementation of the power sector reforms since uninterrupted power supply is a necessary condition for economic recovery and growth. It is critical to actualizing the Vision 2020 agenda. We will do everything to support complete deregulation of the power sector as fast as possible while also exploring the options of alternative energy sources for Lagos State including solar and wind energy.

Our investment in security has borne positive dividends as the crime rate has dropped appreciably in Lagos State. I must thank the private sector, which has continued to demonstrate great support for the Lagos State Security Trust Fund. However, we still have a long way to go and I urge for more contributions to the fund to enable us continue to enhance the capacity of the security agencies to safe guard our lives and property. We will continue to explore Public- Private-Partnership strategies in the provision of infrastructure, social services and the conversion of our challenges to opportunities within the context of scarce financial resources. I am very grateful to members of the organized private sector in all ramifications who have responded to our call to partnership and shown a great and uncommon civic engagement with our government as I also express appreciation to all the security agencies for their commitment and support.

I am happy to report that the restructuring of the Lagos State Internal Revenue Service is yielding the desired result and helping to consolidate and improve on the internal finances of the state. I thank all those in the formal and informal sectors who have heeded our call on the need to meet their tax obligations. We shall continue to campaign for all of us, individuals and corporate citizens, to pay our taxes voluntarily and promptly to enable government live up to its responsibilities to the people. On our part, we shall continue to utilize public resources prudently and with integrity to achieve rapid development of Lagos State.

Let me also thank all workers in our Ministries, Departments and Agencies for identifying with our vision and working very hard to help achieve our set objectives. We have no doubt made considerable success but we are not where we want to be yet. There is still so much work to do and we cannot allow complacency to set in. As we move forward, we will intensify the ongoing public sector reforms to enable better and more efficient delivery of quality services to the public with transparency, integrity and accountability. I urge all our workers to embrace the spirit of change and constantly improve on our skills, attitudes and values in the public interest.

I am grateful to all the Honorable members of this House for your support, patience and cooperation. I thank the leadership and teeming members of the Action Congress and our Royal Fathers for your unflinching support for your government. And I am eternally grateful to the people of Lagos State for the opportunity and privilege to serve. I can assure you that we will intensify the pace of our work in the days ahead to improve and add value to your lives. For us, the reward of hard work is more work.

Your support, co-operation and belief have been our strength and inspiration to continue. Because memories may fade, I think it is important to go back a little bit and remind all of us the difficult roads we have successfully worked together, as hindsight for what we can achieve together in the next and coming years.

In September of 2007, we were compelled to shut down one section of the bridge linking Mile 12 to Ikorodu to enable us rebuild it so that it will not collapse suddenly and take innocent lives. Although it caused discomfort, we finished it before Christmas of 2007 as we promised you and it has continued to serve our people better and safer.

We collaborated together to build part of Lekki-Epe Express way and Adetokunbo Ademola Street. While you endured the discomfort of the construction period, we did our best to work at night while we managed the traffic during the day.

Today, both roads have been completed; Lagos now has them delivered to the highest possible quality and the pain has been replaced with the pleasure of driving.

On the 2nd of August this year, we had to take the painful but necessary decision to partially close the 3rd Mainland Bridge and promised to complete the rehabilitation works in partnership with the Federal Government. You agreed to endure the discomfort; we kept our promise and delivered ahead of the deadline. Today, we have a safer bridge and the pain is gone.

Last year in December, Tejuoso market was unfortunately gutted by fire. We were advised to evacuate the whole market to avoid the disaster and possible loss of life that may follow a sudden collapse.

You agreed to work with us, and today, two markets, the old burnt section and the recently burnt one are simultaneously being rebuilt. Very soon we will be getting two brand new markets that are modern, safer and will be a pride to our state.

On September 21, 2008, with your cooperation, we walked an uncharted technological highway together. We achieved the first controlled demolition of a partially collapsed high rise building in Sub-Saharan Africa. Giving the go ahead for the final countdown of ten seconds for the building to be demolished has so far been the most testing decision I have probably had to make. I found the courage in your support and belief. I will never take them for granted.

There are more challenging roads ahead that we must walk together if we must achieve the Lagos of our dreams.

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.

When we started last year, some people complained that we were in a hurry, that we were running a marathon of four years like a sprint. I am happy and proud first to say that we did so. The global credit crunch reinforces my view that we were right in our strategy because the opportunities are dwindling, the price of oil is coming down but we have invested wisely in infrastructure and the gains will be enduring.

The size of our challenges has outgrown our traditional sources of revenue. We cannot use the same tools to get new results. We will expect more cooperation from all taxable persons, artisans, professionals and corporations who are liable to pay taxes to us to do so promptly and voluntarily. Because of the dwindling prices of oil, the National benchmark for the Federal budget has been reduced from $52.00 to $45.00 in the 2009 budget. Although we have kept almost the same size of budget, our expected revenues from the federal purse have significantly diminished. We believe that with prompt and full payment of taxes by all taxable adults, we can bridge this funding gap.

However, we must continue to sprint through this marathon, to cross the Rubicon, before the door of opportunities close in a possible global recession.

This is why we must do a lot more than we did next year. This is why we must sacrifice more, invest wisely, forebear expectantly so that we can reap bountifully.

We will take more courageous and seemingly difficult decisions. We mean well and intend to do well and will consult with you as best as possible, but we assure you that this is all about you and less about us.

The other road is one we cannot afford to walk. This is the road of inactivity, excuses and failure. It is the road to poverty. The road we have chosen and promised is the road to prosperity. It is the more difficult road, but because of you, we dare to walk it if you will go with us.

It is the road to the brighter rewarding future. It is the road that ensures that Eko O Ni Baje.

An ancient monarch of the Egyptian Empire, Amenhothep IV, once rightly declared that “the glory of a king is in the welfare of his subjects”. In the same vein, the fulfillment of a democratically elected government lies in the happiness and well being of the people. This is why we have a single minded commitment as an Administration to liberating our people from the bondage of poverty, disease, ignorance, joblessness, homelessness and other limitations that detract from the dignity of man. We have the privilege and unique opportunity to actualize the immense potentials of our state and launch her on the part of irreversible prosperity for the benefit of our people. We will optimally utilize this opportunity to leave indelible imprints on the landscape of Lagos State.

We live in very challenging times that task the ingenuity of nations and their leaders. In a highly competitive globalized world, visionary, competent and audacious leadership that inspire a people for greatness can make the difference between the wealth and poverty of nations. The current global financial crisis has reinforced clearly the indispensability of wise and courageous leadership for national greatness. We have seen giant economic organizations-banks, insurance companies, mortgage firms collapse in the twinkling of an eye. We have seen millions lose their life investments and plunged into economic despair. And we are seeing in several countries the ability of strong and determined leadership to offer hope in times of despair; to give people a reason and a purpose for living when all seems lost. Indeed so critical is leadership that the whole world keenly followed the energy, passion, time and resources that Americans invested in the rigorous process of electing their new President.

More than ever before, the world needs leaders who will lead with compassion, courage, wisdom and intelligence; leaders who can see tomorrow today and take proactive steps to save their people from future dangers; leaders who can inspire their people to strive for the best that lies within them in spite of daunting odds. In particular, countries like ours, with so much potential begging for fulfillment requires leadership of the highest quality. It is that committed, honest, creative, sacrificial, courageous and audacious leadership that our Administration promises Lagosians as we continue on our collective journey to actualizing the clean, beautiful, secure and prosperous Lagos of our dreams.

Thank you. God bless you.

Long live Lagos State.

Long live Nigeria.

Eko O Ni Baje!

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