Lagos ’23 budget: Modern Infrastructure projects to gulp N482.86bn

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Lagos ’23 budget: Modern Infrastructure projects to gulp N482.86bn

Lagos State Government has allocated N482.86 billion for the provision of modern infrastructure to its citizenry in 2023 fiscal year.

The total amount thus represents 27.3 percent of the 2023 budget size of

N1.768 trillion, christened: “Budget of Continuity,” to consolidate the development strides of Governor Bababjide Sanwo-Olu led-administration in the state.

State Commissioner for Economic Planning and Budget. Mr. Samuel Egube, in the company of other senior government functionaries, disclosed this on Tuesday, during a media briefing on the breakdown and analysis of the year 2023 budget, held in Alausa, Ikeja.

Egube said the budget aimed to continue the good work of the administration especially in delivering reliable and sufficient infrastructure that meets the needs of a 21st-century city.

He said “The State is totally committed to ensuring that the dividend from its investments in Integrated Transport Infrastructure, which will materialize into the birth of the fully functional light rail (Red-Blue) system, the first of its kind by a sub-national Government in Africa and the 37km Fourth Mainland Bridge will be felt by the citizens of the State.

“These will reduce commute time to millions of Lagosians, reduce congestion on the existing Carter, Eko, Third Mainland Bridges and Ikorodu Road thus increasing productivity, quality of life, as well as improving the overall transportation system in the state.”

The commissioner highlighted the infrastructure budget captured as follows: Construction of the second phase of the blue line from Mile 2 to Okokomaiko, Completion of 8 Stadia across the 5 IBILE divisions of Lagos State, to facilitate youth development, engagement, and community sports, Continuous Construction and Rehabilitation of schools across the state to significantly improve access to quality education, Completion of 130 bed New Massey ultra-modern and fit for purpose Pediatric programmed and emergency general hospital that will be the largest specialist children hospital in Sub- Saharan Africa.

Others include, the Completion of the modern 280 beds General Hospital serving the people of Ojo and its environs which is currently at 47 percent completion, completion of the mental health facility in Ketu Ereyun in Epe local government, completion of the Opebi Link bridge to Maryland ton improve significantly travel time and alternative route options in the axis, rehabilitation/upgrading of Phase II Eti-Osa – Lekki-Epe Expressway Project from Eleko T-Junction–Abraham Adesanya, among others.

Egube explained that: “Most of these projects are contractor funded, with structures that provide very beneficial payment terms that gives the state upfront value (front loaded) ahead of payments; thereby increasing the sustainability benefits to the state”.

He added that the state government has also allocated 13 per cent of the budget for the provision of affordable and world-class education, healthcare and social services for its teeming populace to make the system accessible and affordable.

Egube said, “Human capital continues to be an area of deep interest to the State. We believe that a population that is healthy, skilled and inclusive can only convert the opportunities in the State to value.

“We also intend to expand our effort in Social Interventions with an investment of N9.6 billion as against N8.3 billion in Y2022 social intervention and humanitarian programme that will serve as support for micro and small businesses.

“We will continue to procure training equipment and empowerment tools for graduates in skills and vocational centers across the state.”

He reiterated the government’s commitment to investment in the provision of affordable homes through its social housing programme by injecting a total of N67.1 billion.

Some of the social housing program the Budget targets includes the completion of 444 units of building Projects at Sangotedo Phase ll, completion of 420 units of building Projects at Ajara, Badagry Phase ll and the construction of 136 units of building Projects at Ibeshe ll among others.

Egube stated that the state government’s commitment towards the State’s 5-year Agric road map had seen to the commissioning of the Imota Rice mills which will provide support to farmers and improve food systems generally in the state.

In addition to this, the state will invest a total sum of N45.1 billion for food security through cattle feedlot projects, fish processing hub programmes, and wholesale produce hubs and markets thus improving the wholesomeness of food, reduction in food prices and optimization of the Agricultural sector.

He added that “The N86 billion investment in Public Order and Safety Sector shows the State’s continuous commitment to ensuring that Lagos is safe for living, working and investment. It is important to note that N12 billion has been earmarked for the provision of rescue and emergency operation equipment for disaster management.

Also, provision has been made for surveillance and body cameras for security monitoring.

Egube said the year 2023 Budget will invest in strengthening intelligence gathering/capacity building capabilities together with improving the ease of doing business through the Smart-City project, the Lagos new Data Center project, Eko Excel project, E-GIS and the Oracle upgrade project.

Breakdown

While reviewing the approved Y2022 budget of ₦1.758 trillion which had total revenue of ₦1.237 billion and deficit financing of ₦521.275 billion; with the Capital to Recurrent Ratio that stood at 66:34 with Capital Expenditure of ₦1.167trillion and a Recurrent Expenditure of ₦591.281billion, Egube said as at December 31, 2022, the budget posted a performance of 74 percent with Revenue Performance at 77 percent.

While Capital and Recurrent Expenditure performed at 70 percent and 81 percent respectively, Egube explained was as a result of the late closure of the 134.815 billion Bond transaction, which was oversubscribed in December 2022 and utilization differed till the Year 2023.

“The State approved Y2023 Budget of ₦1.768trillion is made up of ₦1.020trillion (Capital Expenditure) and ₦748.097billion (Recurrent Expenditure- Debt Charges inclusive), resulting in a Capital to Recurrent ratio of 58:42.

“The total revenue is estimated at ₦1.418 trillion, while the deficit-funding requirement is ₦350.411billion which at 25 percent of total revenue which implies that the budget is strongly dependent on revenue,” Egube stated.

As a result of this, the commissioner urged the residents and those that have business with the state to be tax conscious, and fulfill their responsibilities as and when due.