Year 2018 Budget Presentation At The Chambers Of Lagos State House Of Assembly, Alausa

Year 2018 Budget Presentation At The Chambers Of Lagos State House Of Assembly, Alausa

The Year 2017 remains a significant year in the history of Lagos State as we celebrated our Golden Jubilee anniversary colourfully and successfully. The year provided an opportunity not only for celebration but also for significant progress in our drive to becoming a globally competitive economy.

I want to sincerely thank all Lagosians, our leaders, statesmen and citizens for their superlative support thus far, most especially our tax payers throughout Year 2017.

In the outgoing year, we changed the face of Lagos for good in spite of the economic, social and security challenges as our investment in critical infrastructure development paid off and are visible across the length and breadth of the State.

Although the Nigeria economy is still fragile and just coming out of recession, commitment to our people made us work harder to deliver results as we continue our reforms to ensure a safer and more prosperous Lagos. Today, we are proud to say that our collective efforts and transformations have contributed immensely to the improvement of Nigeria’s ranking in the World Bank’s Global Index on the ease of doing business.

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To get a clear picture of the economic challenges that have confronted our government, it is necessary to restate some important indicators. Crude oil prices have been dwindling from $US100.40 in 2014, $US 52.65 in 2015, $US43.81in 2016 to $US46.39 in 2017. Exchange rate increased from N156.44 in 2014 to N305.24 in 2017. The impact of this has been a sharp reduction in the inflow from the (Federal Government) Federation account and a huge increase in the cost of project delivery.

Despite this situation, our government has been able to initiate and deliver more high quality and high impact projects; more than ever before. We have achieved this using a mix of astute financial management and prudency; increasing our internally generated revenues, adequate allocation of resources across all sectors and an all-inclusive governance approach.

It is significant to note that our administration has not contracted any new external loan to fund our projects since assumption of office. We have only completed transactions which were already in place before we assumed office. This administration inherited external loans from various past administrations which make up 60% of all our loans. This figure is made up of some loans that have been running since 1989, about 30 years ago; and were contracted at an average of N80 to $US1. Today these loans are being repaid at an average rate of N305 to $US1 translating to 205% increase in the loan repayment rate.

The State has incurred huge exchange losses on its external loans this year, 2017. The exchange loss represent 35% of the State external loans stock due to exchange rate slump of the Naira from N197.50 to $1 to N305 to $1. This is one of the side effects of an economy in recession.

Irrespective of these losses, it will be inappropriate to say that Lagos State has a high debt burden when situated with the level of development and infrastructural growth enjoyed presently by the State. We are certain that the loans have continually been used for the wellbeing of all Lagosians.

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Despite the additional burden arising from devaluation of the Naira, our debt service ratio remains very strong on the back of our impressive revenue performance. The State’s net debt stock of N874.38bn represents just about 3% of the State GDP, while the Debt service charge to Revenue ratio stood at 15.61% compared to 13.32% in 2016 and 12.45% in 2015. I am proud to report to you that, today, your State remains financially strong and the most vibrant economy in the Nigerian landspace.

As part of the State’s commitment to fiscal sustainability we have continued to ensure that our deficit financing of capital projects remain within global benchmarks and our ratings internationally and locally have reflected our prudent management of public finance.

The Year 2017 Golden Jubilee budget of N812.998billion was approved and signed into Law on January, 9th 2017 to fulfill the expectations and priorities of our people. As at November 2017, the 11 month period Revenue performed at N448.396bn/76% compared to full year’s performances in 2016 of N449.609bn/83% and N399.382bn/82% for 2015.

Suffice it to say that the overall budget performance stood at 74% as at November 2017 and it is projected to close at 80% by the end of the year 2017.

The State average contribution to the National Gross Domestic Product (GDP) from 2015-2017 remains strong at about 30%.

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Mr. Speaker, Honourable Members, distinguished guests, ladies and gentlemen, despite our modest achievements in 2017, there is still much work ahead and we must not relent in our efforts to give our people the best by way of continuous and efficient service delivery. Lagos has always been a trailblazer and we must consolidate on the economic gains made so far by initiating people-friendly programmes and projects that will attract more economic improvement in Y2018.

It is our resolve in Y2018 to strive and complete all on-going projects in order to meet their specified completion period and embark on new strategic projects. We intend to improve on our Internally Generated Revenue (IGR) in the face of the dwindling accruable revenue allocation from the Federal Government, sustain our vision on wealth creation and poverty alleviation.

The proposed Y2018 budget christened ‘Budget of Progress and Development’ has a size of N1, 046,121,181,680 (N1, 046tn). The budget will be used to consolidate on infrastructure, education, transportation/traffic management, security and health with an added emphasis on mandatory capacity building for civil servants, all teachers in public secondary / primary schools, officers in the health service sector and women & youth empowerment alongside our Medium and Small/Micro Size Entrepreneurs (MSMSE’s).

The proposed budget amount represents an increase of 28.67% over Y2017 budget with the following key components:

Recurrent Expenditure                            – N347.039bn

Capital Expenditure                                – N699.082bn

Capital/Recurrent Ratio                              – 67:33

 

The estimate of total revenue for year 2018 is N897.423billion of which N720.123billion will be generated internally. A total of N148.699billion will be sourced through deficit financing within our medium term expenditure framework.

Our investment in new technology and the reforms put in place will galvanize the efficiency of our revenue collection from our citizens.

The highlights of sectoral allocation for Y2018 include;

S/N COFOG Y2018 Proposed Budget
Total
Allocation
%
Allocation
1 General Public Services 171,623,009,348 16.41
2 Public Order and Safety 46,612,667,911 4.46
3 Economic Affairs 473,866,339,451 45.30
4 Environmental Protection 54,582,814,610 5.22
5 Housing and Community Amenities 59,904,562,576 5.73
6 Health 92,676,040,222 8.86
7 Recreation, Culture and Religion 12,511,216,257 1.20
8 Education 126,302,213,428 12.07
9 Social Protection 8,042,317,877 0.77
  Total 1,046,121,181,680 100

 

In 2018, economic affairs will continue to dominate and get the largest allocation of the budget as there is a lot to be achieved in the coming year.

Mr. Speaker and Honourable Members, it is our desire to maintain the tempo of continuous construction, rehabilitation, upgrading and maintenance of network of roads throughout the length and breadth of the State including those within the boundaries of Lagos and Ogun States.

With the favourable weather conditions prevailing now, this year’s Local Government Roads totaling 181 will be commenced as contractors will be mobilized immediately.

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We have made provisions for continuous gridlock resolution, junction improvement, construction of more laybys and advancement of signalization that will improve traffic congestion especially along the Lekki-Epe corridor.

Other key projects that we have provided for include:

  • The Agege Pen Cinema flyover,
  • Alternative routes through Oke-Ira in Eti-Osa to Epe-Lekki expressway,
  • The 8km regional road to serve as alternative route to connect Victoria Garden City (VGC) with Freedom Road in Lekki Phase I.
  • Completion of the on-going reconstruction of Oshodi International Airport Road into a 10-lane road
  • The BRT Lane from Oshodi to Abule-Egba

We will consolidate on the Lagos bus reform project with the introduction of high and medium capacity buses, construction and completion of bus depots at Oshodi, Anthony, Yaba and many more.

In the area of job creation, we will construct an ICT Focus Incubator Centre in Yaba while the development of Imota and Igbonla Light Industrial Park as well as the provision of additional small scale industrial estate at Shala will commence. The State Employment Trust Fund will disburse more funds to Lagosians to support business and stimulate the economy.

From feedback of Lagosians, more emphasis will be placed on the successes already recorded by the Employment Trust Fund to get more of our unemployed youths into gainful employment.

The process leading to the movement of Mile 12 market to Imota which commenced in Y2016 has reached an advanced stage and we will complete the infrastructure in the new location in good time to pave way for relocation next year.

We will vigorously pursue our planned direct intervention in the power value chain towards generating 3,000MW Embedded Power Programme; a 3-year plan to achieving 24/7 power supply for the State. The challenge of inadequate power supply must be resolved for our economy to perform optimally and we believe the provision of this essential utility can no longer be left in the hands of the Federal Government alone to solve. We must complement each other for the overall development of our nation.

We will continue to rekindle our efforts in the area of Tourism, Sports, Arts and Culture by ensuring that our objective of making the State the tourism, sporting and entertainment hub of our nation is conscientiously pursued. In order to achieve this we will focus on these projects:

  • Completion of the 5 new Art Theatres in Alimosho, Ikorodu, Badagry, Epe and Ikeja.
  • Establish a Heritage Centre at the former Federal Presidential State House recently handed over to our government
  • Build a world class museum between the fomer Presidential Lodge and the State House, Marina.
  • Fast-track construction of the proposed 4 new stadia in Igbogbo, Epe, Badagry and Ajeromi Ifelodun(Ajegunle).
  • Complete the on-going Epe and Badagry Marina projects that will turn both areas into world class destination for tourists and adventure seekers.

We are mindful of the housing needs of the citizens that is why we are poised on completing all on-going housing projects especially those at Gbagada, Igbogbo, Iponri, Igando, Omole Phase I, Sangotedo and Ajara-Badagry for delivery to our subscribers under the Rent-to-Own policy of this administration.

Distinguished Guests, Ladies and Gentlemen, this budget has something for everyone, young and old, man or woman, including the physically challenged in line with our vision of making Lagos work for all. We shall also make massive investments in the area of Healthcare, Health Insurance, Education, Food Security and General Public Service.

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I want to use this opportunity to acknowledge the cooperation and support received from the citizens of Lagos, members of the Business Community, Professional Bodies, Non-governmental Organizations and the State Civil Servants in years past. We thank you all for the support while soliciting for your continuous collaboration.

Our modest achievements so far had been made possible by the citizens that have been paying their taxes willingly and faithfully. It is expedient for me therefore to appeal to all our citizens and corporate entities to perform their civic responsibility by paying their taxes as and when due.

As we commence our Cleaner Lagos Initiative Programme, I strongly appeal to all citizens to embrace the Public Utility Levy that will commence in January 2018 for a cleaner, healthier Lagos.

The success of the proposed 2018 budget will rest on our commitment to succeed, drive to be self -sustaining and accelerate growth in both infrastructural and economic reforms, through revenue enhancement especially on fiscalization of consumption taxes, re-enactment of Land Use Law and implementation of physical planning regulations amongst others. As a result, we all have a huge responsibility at ensuring that the 2018 budgetary estimates become a reality as we take another giant stride in the history of our sustainable fiscal responsibilities.

In line with our tradition, the Honourable Commissioner for Finance will provide further breakdown of the proposed Y2018 budgetary estimates to the public later today.

I have left my commendation and appreciation of the House of Assembly for last so that the message of dutiful and selfless work rendered by this Assembly is well delivered. I am yet to see any House of Assembly in the country that is as dynamic and robust as the Lagos State House of Assembly.

Mr. Speaker, we are grateful for your leadership and continuous cooperation with the other arms of government. Honourable Members, I thank you all for your support.

Mr. Speaker and Honourable Members of this hallowed Chamber, our Royal Fathers, Distinguished Guests, gentlemen of the press, Ladies and Gentlemen, I wish you all Merry Christmas and a prosperous Y2018 in advance. Thank you for listening.

Itesiwaju Ipinle Eko Lo Je wa Logun!!

Akinwunmi Ambode

Governor of Lagos State

LASG Seeks NERC’s Approval For 3,000MW Power Project

LASG Seeks NERC’s Approval For 3,000MW Power Project

Lagos State Governor, Mr. Akinwunmi Ambode, on Friday sought a no objection letter from the Nigerian Electricity Regulatory Commission (NERC) for the State Government’s Embedded Power Programme.

Governor Ambode, who led some members of the State Executive Council, lawmakers and other critical stakeholders to a meeting at the NERC’s headquarters in Abuja, said the embedded power project was designed as his administration’s flagship programme for direct intervention in the power value chain towards achieving a 24-hour power for Lagos.

He said the proposed power programme would generate up to 3,000MW of power through accelerated deployment of various power plants in strategic locations across the State by private sector power providers within three to six years.
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He noted that Nigerians’ aspiration to create a secured and prosperous nation that is globally competitive will be difficult to achieve without stable power supply.

Governor Ambode posited that while efforts are ongoing to resolve the power crisis, it had become increasingly clear that the problems in the energy sector could no longer be left to the Federal Government alone to solve.

“Embedded power was designed as our flagship programme for direct intervention in the power value chain towards achieving a 24-hour power for Lagos. Lagos State has always demonstrated its capacity and willingness to play a leading role in resolving the power sector challenges in the state, subject to the limit of the federal authority allowed regulations.

“Having succeeded in powering government facilities, the next level of intervention for our government is to collaborate with other stakeholders in the power sector to design and implement a roadmap for uninterrupted power supply to homes and businesses in Lagos State.

“The draft of the Lagos State Embedded Power Bill was finalised in May 2017 and submitted to the National Electricity Regulatory Commission for clearance before same can be forwarded to the State House of Assembly.

“The stakeholders meeting holding today is a continuation of the ongoing engagement between NERC and the Lagos State Government on the Lagos State Embedded Power Programme.

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“We are convinced that the offer by our government to deploy the state’s balance sheet in support of power generation, transmission, distribution, gas supply, metering, collection and enforcement in Lagos State will significantly relieve the national grid and free more energy for distribution to other parts of Nigeria.

“The proposed power programme will generate up to 3,000MW of power through accelerated deployment of various power plants in strategic locations across the state by private sector power providers within three to six years.”

He said the State Government would issue guarantees in support of the Power Purchase Agreements that will be signed between the distribution companies and the private sector embedded power providers to enhance bankability of the projects.

He added that the power generated under the programme will be distributed through the networks of Eko and Ikeja Distribution Companies while the state would support the distribution companies in upgrading their distribution infrastructure for embedded power areas in line with NERC guidelines.

“The State Government will support the distribution companies in installation of smart prepaid meters in the areas where embedded power is deployed. We will institute a cost-reflective tariff regime that is fair to all stakeholders, sustainable and capable of attracting private capital to the sector on a continuous basis.

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“Other areas of collaboration include support for revenue collection, legislation and establishment of an agency for enforcement of power theft laws in Lagos.

“Our prayer today is to seek the commission’s no objection letter for the Lagos State Embedded Power Programme, based on cost reflective tariff regime that is fair to all parties and capable of unlocking private sector investments into the power sector on a sustainable basis,” the Governor said.

Responding, the NERC’s Commissioner in charge of Legal License and Compliance, Dafe Akpeneye, who stood in for the Commission’s Vice Chairman, promised that the NERC would work with the Lagos State Government to ensure the success of the programme.

“Within the ambit of the law and existing regulations, you have our unflinching support in this project.

“So in response to what you said in your prayers to us, Your Excellency, I reaffirm the support of NERC towards this project. Our commitment is to create a viable electricity industry that works for Nigeria and Nigerians
“As the laws and regulations permit us, we will work with you on this project to ensure that it does see the light of the day,” Akpaneye promised.

Akpeneye however called the Governor’s attention to some safety issues that concern the state.

He spoke about the right of way, standards and designs, electricity theft as well as customers’ enumeration.

He noted that a situation where the Commission’s record indicates that there are only 1.2million registered electricity customers in Lagos State is not tidy enough when almost all the houses in the state are connected to national grid.

Representatives of both Eko and Ikeja Distribution Companies at the meeting declared their support for the project, saying that it would be detrimental to the progress of Nigeria if they opposed it.

Lagos State Government Targets 3000mw 24-Hour Power Generation

Lagos State Government Targets 3000mw 24-Hour Power Generation

…32 Communities In Badagry To Be Connected To National Grid By March

Lagos State Governor, Mr. Akinwunmi Ambode on Wednesday said the quest by the country to achieve energy security can no longer be left for the Federal Government to address alone, just as he revealed plans by the State to attain 24-hour power supply through generation of 3000megawatts of electricity by 2022. 

Speaking at Lagos House in Ikeja after receiving the report of the Embedded Power Technical Committee constituted by the State Government with representatives from the public and private sector, Governor Ambode said while the Federal Government continues in its efforts to resolve the power crisis, the sustainable solution going forward would be the pulling together of commitment and resources of all stakeholders in the power value chain. 

While explaining the rationale behind the embedded power initiative of the State Government, Governor Ambode said the major bane of the power situation in the country has always been with transmission, adding that the initiative was designed to permanently resolve power crisis in the State and by extension in the country.

He said: “The reason why we embarked on this initiative is that we believe strongly that if the power problem is solved in Lagos, it is technically solved in the whole of the country and so because Lagos has more or less tested a solution that works, we can scale this up and also address it on a national scale.

“The problem of power in Nigeria is the problem of transmission and that is the truth. Yes, we have generating companies and we have distributing companies and they say power is in the hands of the private sector but we know technically that that is not totally true.

“We also know that transmission is hundred per cent owned by government but we have tested here in Lagos and we have been able to provide 48 kilowatts of power without transmitting it which means that we generate and then distribute.

Lagos State Governor, Mr. Akinwunmi Ambode (middle), in a group photograph with Deputy Governor, Dr. (Mrs) Oluranti Adebule (4th left) and members of the Power Technical Committee during the presentation of the Embedded Power Initiative report to the Governor at the Lagos House, Ikeja, on Wednesday, February 15, 2017.
Lagos State Governor, Mr. Akinwunmi Ambode (middle), in a group photograph with Deputy Governor, Dr. (Mrs) Oluranti Adebule (4th left) and members of the Power Technical Committee during the presentation of the Embedded Power Initiative report to the Governor at the Lagos House, Ikeja, on Wednesday, February 15, 2017.

“So, if that works for 48 kilowatts, can we put Lagos into clusters and actually use embedded power initiative to drive the business of Lagos? That is what this initiative is all about and I want to thank all the stakeholders for submitting their business template into what government sees as the right step to take so that we can join hands together to say in the next two to five years, we can actually power Lagos and then grow our GDP.”

Governor Ambode said the target of the State Government is to generate up to 3,000MW of power through accelerated deployment of various embedded power plants in strategic locations in the State within three to five years.

Out of the 3000MW, the Governor said 350MW would be delivered by Q1 2018, additional 850MW by Q4 2018, and the balance of 1,800MW not later Q3 2022, while the State Government will support the Power Purchase Agreements (PPAs) to be signed between the Distribution Companies and the embedded power providers, to enhance bankability of the projects.

He said the embedded power will be distributed off-grid within Lagos State through the network of Eko and Ikeja Distribution Companies, while the State Government will support the Distribution Companies in upgrading their distribution infrastructure and installation of smart prepaid meters in the areas where embedded power is deployed.

Other areas of collaboration, according to the Governor, would include support for collection, appropriate legislation and enforcement of power theft laws.

Besides, Governor Ambode said his administration will collaborate with operators of oil blocks in the Lagos area to accelerate the extraction of gas feedstocks for power generation, adding that alternative sources of fuel would be explored to sustain uninterrupted power supply in the medium to long term, including partnerships on investments in gas pipeline infrastructure through the State’s owned oil and gas Corporation – Ibile Oil and Gas.

While recalling the success of the Light Up Lagos Project with installation of over 47,000 poles of street lights, and connection of about 67 communities in the Ibeju Lekki axis to national grid after about six years off grid under the rural electrification project, Governor Ambode said another 32 communities in Badagry which have not had access to electricity for over sixteen years would be connected to the grid within the next 21 days.

Responding on behalf of Distribution Companies (DISCOS), Chairman of Eko Distribution Company, Mr. Charles Momoh commended Governor Ambode for the embedded power initiative, saying it was the best thing that has happened to Lagos State in recent times.

He also expressed the confidence of DISCOS in the ability of the Governor to see to the success of the initiative.

Earlier in his remarks, the Commissioner for Energy and Mineral Resources, Mr. Wale Oluwo, said he was confident that the implementation of the report holistically would address electricity problem in the state.

Address Delivered At The Presentation Of The Report On Embedded Power Technical Committee

Address Delivered At The Presentation Of The Report On Embedded Power Technical Committee

Powering Lagos Of The Future: The Lagos State Embedded Power Programme

On my resumption of office as Governor of Lagos State, one of the many firm resolves I made was to tackle the structural and administrative issues slowing down our State from realising its full economic potentials. You will agree with me that the problems plaguing the entire power sector value chain in Nigeria has had very negative impact on productivity, sustainable growth and development of the nation.

While the Federal Government continues in its efforts to resolve the power crisis, it has become clear that the problems in the Energy Sector can no longer be left to the Federal Government alone to solve. The sustainable solution going forward is one that pools together the commitment and resources of ALL stakeholders in the power value chain.

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In this regard, and in fulfillment of my election promise to create an enabling environment for people and businesses to thrive in Lagos State, our government initiated the Light Up Lagos programme as a platform to drive sustainable intervention in the following areas:

  1. Street Lighting – To improve illumination, aesthetics, night economy and security in the state.This isbeing relentlessly pursued, with over 47,000 poles of street lights under concession for effective management and optimum performance.
  1. Rural electrification – To improve grid and off grid power to communities. In this regard, about 67communities in the IbejuLekki axis were connected to the grid in March 2016 after about six years off grid. Another 32 communities in Badagry have not had access to electricity for over sixteen (16) years. We have been working around the clock and I am delighted to inform you that the communities will be connected to the grid within the next 21 days.
  1. Embedded Power – To work with stakeholders towards achieving a 24-hour power for Lagos.

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The overall objective of our power intervention programme is to ensure ENERGY SECURITY for Lagos State, by implementing the following:

  • Generate up to3,000MW ofpower through accelerated deployment of various Embedded powerplants in strategic locations in the State within 3 to 7 years. It is planned that 350MW of this incremental power will be delivered by Q1 2018, additional 850MW by Q4 2018, and the balance of 1,800MW not later Q3 2022.The State Government will support the Power Purchase Agreements (PPAs)that will be signed between the Distribution companies and the embedded power providers, to enhance bankability of the projects.
  • Distribute the Embedded Power, off-grid, within Lagos State through the network of Eko and Ikeja distribution companies. We will support the distribution companies in upgrading their distribution infrastructure and installation of smart prepaid meters in the areas where embedded power is deployed.
  • Other areas of collaboration will include support for collection, appropriate legislation and enforcement of power theft laws.
  • We will actively collaborate with operators of oil blocks in the Lagos area to accelerate the extraction of gas feedstocks for power generation. Alternative sources of fuel will be explored to sustain uninterrupted power supply in the medium to long term, including partnerships on investments in gas pipeline infrastructure through the State’s owned oil and gas Corporation – Ibile Oil and Gas.

 

In August 2016, the State’s Ministry of Energy & Mineral Resources presented its findings from the Power Advisory Committee to The State Executive Council and outlined The Roadmap for Powering Lagos of The Future with strategic focus on Embedded Power.

The presentations made where well received by the State Executive Council, leading to the setting up of a Technical Committee to review the Embedded Power proposals and advise the government on its implementation. I thank members of the Technical Committee, which includeGeneral Electric, Siemens, Schneider Electric, Shell Gas, PriceWaterhouseCoopers-PWC, Crisps Capital, Gaslink, Falcon Gas, Eko Distribution Company, Ikeja Electric, Detail Solicitors, Gbolahan Elias & Co, Powertech Limited, Ibile Oil & Gas Corporation, Egbin Power Company, Access Bank, Sparkwest Limited and I-Zap Engineering Services.

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I am delighted to receive the report of the Technical Committee on the Lagos State Embedded Power Programme. I have a strong conviction that the wealth of knowledge available within the committee would validate the assumptions and recommendations contained in this report.

It is my hope and belief that the integrated road map contained in your report will deliver to the people of Lagos State an uninterrupted power supply, which will in turn spur economic growth and prosperity.

Let me use this opportunity to thank every member of the Power Advisory Committee, the precursor to laying the solid foundation upon which the Technical Committee was birthed. I would also like to commend them and the State’s Energy Team for putting together this report. I am confident that we can collectively –  Government, industry key players and the private sector represented here defeat the most burning challenge facing our State and country, most especially now as Lagos turns 50!

Distinguished ladies and gentlemen, thank you all for your attention.

ItesiwajuIpinleEko…..lo je walogun!

Year 2017 Budget Presentation At The Chamber Of The Lagos State House Of Assembly, Alausa, Ikeja

Year 2017 Budget Presentation At The Chamber Of The Lagos State House Of Assembly, Alausa, Ikeja

At the commencement of this administration, we began a journey with the people of Lagos with a promise to make the State work for all. We undertook this journey with great hope for tomorrow. We set forth not alone, but with the Almighty who has been faithful and very generous to us as a State in spite of the present economic situation we have found ourselves as a Nation.

On behalf of all the people of Lagos State, I wish to commend the Honourable Speaker and all Honourable members of this hallowed chamber for their unrelenting strides in growing and developing the economy of the State and being worthy ambassadors of our people.

The Year 2016 budget of N662.588bn was approved and signed into Law on January 4th, 2016 to focus on the expectations and priorities of our people. As at the end of October, 2016, the overall performance of the budgetwas 71%. Total revenue stood at N350bn/77.5% while Capital Expenditure closed at N200bn/62%and the Recurrent Expenditure performed at N180bn/82%.

As you are all well aware, we shall continue to render our performance/activities through in our Quarterly Town Hall Meetings in which the last Three meetings showcased all our activities in all sectors.

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It is my strong belief that by the end of this year; there would have been more improvements in the performance indices due to our strong investment in infrastructure. It is worthy to note also that the reforms and restructuring in the Public Service have continued to yield positive and encouraging results as we continue to invest the resultant savings in othereconomic sectors of the State.

Mr. Speaker, Honorable Members, Distinguished Ladies and Gentlemen, “The People’s” budget of 2016 has positively impacted the lives of Lagosians and I am confident that the year 2017 budget will consolidate on our modest achievements and propel our State to enviable heights.

The Year 2017 Budget will be in effect at anauspicious time when our State will be celebrating its Golden Jubilee Anniversary.The proposed budget with a size of N812.998billion will continue the massive renewal of our infrastructure and the enhancement of Lagos as one of the foremost tourism and investment destination in Africa.

While we focus on physical infrastructure, we shall continue to pay due attention to social infrastructure especially health, education, youth and social development in 2017.

 The key components of “The Golden Jubilee Budget”are:

Budget Size                                               –          N813bn

Recurrent   Expenditure                          –          N300.535bn

Capital    Expenditure                             –          N512.464bn

Capital/Recurrent ratio                           –          63:37

We have maintained a conservative approach in estimating our Federal Allocation due to falling oil prices that was about$41.98per barrel at the time we finalized this budget; however the State expects an increase in Federal allocation through 13% derivation from Oil & Gas in 2017.

In view of our financing gap, we shall continue to sustain deficit financing in the short-to-medium term; enhance revenue growth throughout the year on several initiatives including automation and efficient revenue administration.

We would explore more collaborations with local and international investors through Public-Private Partnerships (PPP) especially in the areas of Road network expansion,Transport;Housing, and the Environment.

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The sectoral allocations as proposed in this budget will be distilled further by the Commissioner of Finance later today.

We will equally continue implementing the ease of doing business reforms – starting a business, property registration, tax payment, e-GIS/ Smart  Cityproject,continue to encourage investments in Lekki Free Trade Zone (FTZ), Badagry Deep Sea port and the Eko Atlantic project.

We will remain steadfast in our responsibility to make the State safe and secure for all our citizens.We will continue to invest in Security. The NeighbourhoodSafety Agency will become fully operational by 2017 with presence in all our Local Governments and LCDAs.

 A key focus of the budget for the 2017 is road construction, rehabilitation and maintenance. Our government will focus on roads that will open up the hinterlands, improve connectivity in the State and reduce travel time. Some of these projects will include:

  • Murtala Mohammed International Airport Road from Oshodi.
  • Agric-Isawo-Owotu-ArepoRoad in Ikorodu
  • Igbe-Igbogbo Phase II- Bola Tinubu Way in Ikorodu.
  • IjegunImore Phase II Amuwo in Ojo axis.
  • Oke-Oso-Araga-Poka in Epe.
  • Epe-Poka-Mojoda in the Epe axis.
  • Completion of the Abule-Egba, Ajah and Pen Cinema flyovers.

Our administration shall enter into PPPs for the following projects;

  • Oke Oso-Itoikindualisation Project in the Epe axis.
  • Okokomaiko-Seme Road Project in Badagry axis
  • Ikorodu-Agbowa-Itoikin-Ijebu Ode Road Project in Ikorodu axis

We will commence the Phase II of the 114 Local Government Roads project and the Fourth Mainland Bridge in 2017.

In the course of the 2017 Financial Year, we shall carry out fundamental reforms on all our modes of transportation – Roads, Water and the Walkways. In this wise, a Public Transport Infrastructure Bond will be issued in the course of the year.

The State government will embark on the Urbanisation of the Marina axis, Waterways Channelization, establishment of more Parks and Gardens as well as the Community SportsCentres and Stadiums in different locations across the State.

We will fully implement the Medical Health Insurance Scheme and deploy e-Health/ e-insurance Health Service solutions; and complete the on-going upgrading and extension work in the State General Hospitals and Ayinke House in Ikeja. Work will commence on our Medical Park in the 2017 fiscal year.

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With the aim of making Lagos State the next technology frontier in Africa, we will invest in Digital Libraries (e-Libraries) as well as Code Lagos projects to prepare our younger ones to meet the new workforcedemands, harness the benefits of technology and communicate in the language of the future.

Our administration is committed to various projects in the area of Tourism. Our vision is to create a Tourism Hub around the Onikan-Lagos Marina Axis. We will also develop the Epe and Badagry marinas to harness the tourism potentials of these areas. We will establish Museum for Art and Culture in Ikeja, construct 5 Arts/Culture theatres in Alimosho,Badagry, Epe, Ikorodu and Ikeja with a 400-seater hall in each of them.

We will accelerate the food expansion programme with a special focus on rice production, animal husbandry and root crops. We will intensify our collaboration with other States in the development of a commodity Value Chain specifically for food commodities. We will invest more to boost fish production in the State, by improving the production capacity of Ayobo Fish Farm Estate in Alimosho area in addition to providing employment opportunities for the youths.

The Employment Trust Fund has commenced financial support to our youths and entrepreneurs and this will be intensified throughout next year.

In the area of environment, we will improve water supply through Public Private Partnership (PPP) and increase the capacity utilization of water treatment plants, ensure efficient waste management system by increasing the number of Transfer Loading Stations from three (3) to fifteen (15), mitigate the effect of climate change through the conservation of the natural environment and promotion of biodiversity, as well as minimizing flood through effective erosion control.

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Mr. Speaker, Honorable Members, Distinguished Guests, Ladies and Gentlemen, in our bid to ensure that Lagos works for all, we have presented an all-inclusive budget. However, we are constrained by rising inflation as well as limited financial resources.

Weseek the cooperation and understanding of all residents in prompt payment of taxes and for the information of our citizens, the State Government has embarked on extensive revenue collection reforms.We will soon introducemore effective multi-pay channels to improve the administration and collection of Revenue. Our Central Billing System and efforts to fully automate revenue collection for ease of payment have reached an advanced stage.

The successful implementation of this budget   depends on all Lagosians. We all have a huge responsibility to ensure that it succeeds as we cannot just afford to fail even at this critical period of economic recession.

As we approach the end of the year, we implore all citizens to be conscious of their environment and take all preventive measures as appropriate. We will continue to ask for your support at all times as we continue to build the Lagos that works for all.

I wish you all, a prosperous and more fulfilling Year ahead.