LASG: N1.046tn Budget Signals Robust Economic Outlook in 2018

Gboyega Akinsanmi

Amid diverse uncertainties that still becloud the national economy, the Lagos State Government has promised that its 2018 budget valued N1.046 trillion will lead to socio-economic activities that will generate jobs and create wealth for its residents in the fiscal year.

This is contained in the text of the 2018 appropriation bill analysis, which was authored by the state Commissioner for Economic Planning & Budget, Mr. Akinyemi Ashade, detailing what the state would spend in the fiscal year project by project and programme by programme.

Under the 2018 fiscal year, the state government proposed to spend N699.082 million on strategic capital projects, which the budget analysis shows, accounted for 67 percent of the total appropriation plan.

Citing the 2017 budget that had already recorded over 80 percent performance, the state government proposed to generate a total revenue estimate of N897.423 billion with a comprehensive plan to generate the balance of N148.699 billion through a N85 billion Bond Issuance Programme and the balance from the combination of internal and external loans.

Quite ambitiously, the state put its total internally generated Revenue (TIGR) at N720.123 billion, representing 80 per cent of the total revenue, proposing that the balance of N177.300 billion, representing 20 percent, would come from federal transfers including its share of 13 percent derivation account from its current status as oil producing state.

At the budget presentation, however, the state governor, Mr. Akinwunmi Ambode, had allayed fear that the state’s debt stock of N N874.38 billion might slow down its economic growth and project execution.

Ambode, then, noted that the debt stock “only represents about 3 percent of the state GDP, while the debt service charge to revenue ratio stood at 17.61 percent compared to 13.32 percent in 2016 and 12.45 per cent in 2015.”
In the text of the budget analysis, therefore, Ashade said the state government would spend N135.815 billion on developing strategic road infrastructure and inner-city road projects tagged special road intervention in all local government areas (LGAs) and local council development areas (LCDAs).

As indicated in the budget analysis, he listed the road projects to include Pen Cinema flyover in Agege; Opebi-Mende Link Bridge; Oshodi-Murtala Mohammed International Airport road; Lekki-Epe expressway from Eleko junction and Agric-Isawo-Owutu-Arepo road in Ikorodu among others.

Also, Ashade noted that the state government “will continue the expansion of Bus Rapid Transit (BRT) corridors to other areas, signages and road signalisations; lane-marking and community traffic initiatives; reclamation of Lekki Foreshore; advancement of ‘Light-up’ Lagos project to inner-city roads through provision, rehabilitation and maintenance of streetlight facilities including solar power.”

He indicated the plan of the state government to utilise the public-private partnership (PPP) to develop 3,000 megawatts embedded power programme; Ikorodu-Agbowa-Itoikin-Ijebu Ode road project as well as the Okokomaiko-Seme section of Lagos-Badagry expressway.

Like road infrastructure, the commissioner disclosed that a sum N101.358 billion was earmarked for light rail (blue line) project, 10-lane Lagos-Badagry road, construction of jetties and terminals at Marina in Epe and Badagry with shoreline protection as well as procurement of ferries to improve water transportation and encourage tourism.
Likewise, he said the state government “will continue the expansion of BRT lanes in Lagos. We are committed to the completion of Oshodi-Abule Egba BRT corridor. We shall continue to implement the fundamental reforms on all our modes of transportation – roads, water, rail, and the walkways.”

He added: “To complement this reform, provision has been made for purchase of over 850 high-and-medium-capacity buses, construction and completion of three depots at Oshodi, Anthony and Yaba, to complement bus terminals at Ikeja, Oyingbo and Ajah.”

Ashade dwelt much on the plan to spend N54.582 billion to execute its Cleaner Lagos Initiative, landscaping and beautification of Gbagada-Oshodi expressway as well as the establishment of modern recreation park or botanical garden along Gbagada-Anthony road.

Under the environment, the commissioner said the state government “will construct 15 new waterworks; rehabilitate 13 existing mini/micro water works, continue Phase II of the Adiyan waterworks project. We are equally collaborating with private investors towards ensuring all-year-round provision of potable water in the state especially on new water schemes.”

He put the total allocation for housing and community amenities at N59.904 billion, which he said, would allow the Ambode administration deliver affordable housing units to all subscribers under the ‘rent-to-own’ schemes in Gbagada, Igbogbo, Iponri, Igando, Omole Phase I and Sangotedo among others.

He gave insight into the plan of the state government “to embark on slum regeneration to improve the living conditions of identified blighted areas; efficient issuance of electronic Certificates of Occupancy (C of O); re-engineering and maintenance of existing estates; effective provision of geospatial information, provision of infrastructural facilities at Golden Jubilee and other estates as well as continuous payment of compensation on acquired land.”