Home Lagos House of Assembly this Week Sanwo-Olu Seeks Lawmakers’s Approval For N250bn Loan

Sanwo-Olu Seeks Lawmakers’s Approval For N250bn Loan

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……Requests Re-ordering of 2019 Budget

By OKUNADE ADEKUNLE

The Executive Governor of Lagos State, Mr. Babajide Sanwo-Olu, has approached the members of the State’s House of Assembly for the approval of N250bn loan which is to be sourced through capital market and internally.

Sanwo-Olu also requested for re-ordering of 2019 budget which stands at N873.532 billion by the House of Assembly.

These were contained in a letter read on the floor of the House of Assembly by the Clerk, Mr. Sani Azeez during plenary on Tuesday.

Sanwo-Olu pointed out that budgetary provisions of both recurrent and capital budget of ministries, departments and agencies are not likely to be utilized before the end of the year and the sum of N34.050 billion can be re-ordered.

The breakdown shows that the recurrent is N24 billion while the capital is N10.050 billion.

The Governor said that the government is constraints by the lack of new revenue sources for the remaining months of the year and as a result, he would not be in a position to propose a supplementary budget, hence the recourse to re-ordering 2019 budget.

Sanwo-Olu, in the letter, noted that the 2019 budget had been partially implemented by the last administration before the tenure came to an end on 29th May, 2019.

According to him, the budget as at 31st August, 2019 had a 71 per cent overall performance which is below the set target of 100 per cent.

“Further analysis shows that the recurrent expenditure stood at 80 per cent while capital expenditure was at 64 per cent performance, portending a 49:51 capital/recurrent ratio against the target of 55:45.

“It should be noted that some of the major MDAs that are supposed to implement the capital expenditure are performing below expectation, while others have almost exhausted their budgetary provisions”, he added.

He, therefore, implored all other arms of government to cooperate with him by ensuring that they improve on spending in priority areas.

The Governor stressed that the present administration is confronted with the need to keep its electoral promises to the citizens and resolved to take advantage of the weather condition in the later part of the year to complete various projects.

“As a result, the present structure of the budget would have to be amended to specifically drive capital expenditure through the completion of various ongoing capital projects, which were started by the previous administration, in addition to accommodating few new priorities such as completion of Lagos Badagry express road, Agege Pen cinema over head bridge, Agric-Isawo road, Bola Ahmed Tinubu -Igbogbo road, rehabilitation of schools, initiate and complete smart city project and zero tolerance for portholes amongst others”, he said.

The Speaker, Rt Hon. Mudashiru Obasa, however, committed the governor’s request to the joint committees on Finance and Budget and Economic planning and to report back on Monday, 21st of October, 2019.

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