Press Releases

Fashola Advocates Public Spending On Infrastructure As Recipe Against Recession
• As Governor Commissions, hands over H.A.B. Fasinro Court in Apapa

Nov 24, 2011 - Lagos State Governor, Mr. Babatunde Fashola (SAN), Thursday advocated public spending on infrastructural development as the most viable means to counter economic recession saying his administration intends pursuing vigorously massive construction of houses at all levels in the implementation of its Year 2012 Budget.

Governor Fashola, who spoke at the commissioning and handing over of a 60-flat housing project of the Lagos State Development and Property Corporation (L.S.D.P.C. ) named after Elder Statesman, Senator H.A.B. Fasinro, in Apapa, said it was also the responsibility of Government to lead the spending drive in times of economic difficulty in order to attract the private sector.

Pointing out that 2,558 workers found employment at the site during the period of construction of the estate, Governor Fashola declared, "For me, this is the kind of public spending governments must pursue at a time of economic difficulty. These are the kind of projects for the construction of houses at all levels that we intend to pursue vigorously in the implementation of the year 2012 Budget as soon as it starts".

According to the Governor, "If Government does not lead the spending drive in times of economic recession and depression, Private Sector will not venture. The danger this brings on is a consequence of capital flight leading sometimes to excessive demand for repatriation of foreign exchange".

"It is clear to me that using this matrix alone of 2558 people finding employment on one site, it means that if we have ten sites, 20,000 people will be working therein", he said adding, "And this is what we commit to do next year".

Governor Fashola explained that his administration has adopted a multi-pronged strategic approach in tackling the housing problem of the State pointing out that the approach was meant to meet the housing demands of all levels of the society while also enabling Government to earn profit from the privileged to subsidize the less privileged.

Quoting the Managing Director of LSDPC who, in his welcome address, said the houses had been fully subscribed and paid for, the Governor declared, "Now, if there was no demand at the upper level of society, clearly the houses would still be available for sale, so we are addressing this challenge across board "

"But what this means for us is that through this initiative, this Government has earned some profit by servicing the privileged and from it can fund the needs of the less privileged. This approach in Apapa by which we built for the rich to earn profit to subsidize the poor is different from the strategy that we used in Otedola Housing Scheme in Epe.

"In the Olaitan Mustapha and Adetoun Mustapha Housing Schemes in Ojokoro which were driven with direct Government funding it's a way to subsidize the cost of delivering the houses. It is also different from the approach that we used in the Elegant Court Project in Ikota where Government only provided land with the view to sharing in the profit from the sales by the private developer through which Government again can continue to fund social commitments and obligations", Governor Fashola said.

He continued, "While I am convinced that the pursuit of this multi-strategic options remains the most viable route to our goal of reducing the housing deficit and increasing access to shelter, because everybody gets to participate at one time or the other, what is instructive is that all of these choices have one thing in common and that is that they continuously stimulate economic activity in our State. They stimulate growth and they create jobs and address the issue of employment".

Speaking on the difficulties which the residents of Apapa currently encounter, Governor Fashola, who pointed out that the difficulties were being exacerbated by Okada riders, trailers and tankers in the area hinted that a policy was in the offing to address and deal decisively with the problem.

Governor Fashola, however, declared, "But what we see and experience clearly is a failure of agencies of the Federal Government to do their work and they manage the port at the expense of the lives of the residents. Just recently, it was announced that N188 billion was generated from this Port; but the question is, how much of it was spent in Lagos? How much of it was spent or committed to building rail that will evacuate cargo from the Port?".

The Governor advised the residents to strengthen their Association and community involvement as well as work with the Local and State Governments and "rise up to assist in reclaiming this neighbourhood", adding that, Okada being a business, if the residents refuse to patronize it, it would die naturally.

"As I have said to all those who care to listen, if okada is a problem to you, stop using it; because it is a business and if you don't patronize it, it will leave you alone", the Governor said. On the inner city roads, Governor Fashola, who said his administration had started regeneration of a number of roads in the area, added, "With the passage of the 2012 Budget, we intend to scale up our activities here and build more roads".

He, however, solicited the collaboration of the residents "working with the Local Government Chairman to tell us how, where and in what manner we can make life in this place much more conducive".

Commending the management of the LSDPC for the successful completion of the Project, Governor Fashola said the H.A.B. Fasinro Court was the fourth housing estate to be handed over between September this year and now adding that his administration would continue to do so more vigorously in the new year.

In his welcome address earlier, the Managing Director/ Chief Executive Officer of LSDPC, Mr. Biodun Oki said the H.A.B. Fasinro Court sits on 1.635 hectares of land and contains 10 blocks of 6-units 3-bedroom flats adding that the Corporation has adopted the design that enhances and fosters the sense of community while retaining for each block, adequate space for services and parking.

According to him, "As much as we strive to have our presence felt in all the Local Government and Local Council Development Areas, we are constrained by the shortage of land", adding that the Corporation had to forfeit its staff quarters which was built on the land in order to make the housing project possible.

Also present at the occasion were Commissioner for Housing, Mr. Bosun Jeje, Secretary to the State Government, Mrs. Oluranti Adebule among other members of the State Executive Council, Chairman of Apapa Local Government Area, Hon Ayodele Joseph, Ojora of Ijoraland, Oba Fatai Aromire and a representative of the Oba of Lagos among other traditional rulers, Managing Director of Guaranty Trust Bank, financiers of the project, Mr. Segun Agbaje, as well as other stakeholders and top government functionaries.