2023 budget: Sanwo-Olu to spend N759bn on personnel cost, debts

THE Lagos State Governor, Babajide Sanwo-Olu, has proposed to spend N759.96 billion, representing 45 per cent of the state’s 2023 Appropriation bill, on personnel cost, overhead and debt services.

Sanwo-Olu disclosed this on Thursday when he presented the N1.693 trillion 2023 Appropriation bill to the House of Assembly.

According to a statement signed by the governor’s Chief Press Secretary, Gboyega Akosile, the fiscal proposal, tagged, ‘Budget of Continuity’, has a capital expenditure of N932.7 billion, representing 55 per cent of the 2023 budget. The recurrent expenditure, which includes personnel cost, overhead and debt services, is N759.96 billion, representing 45 per cent.

The governor proposed a N153.5 billion allocation to education next year, representing 9.07 per cent of the total budget estimates, “in order to consolidate the gains of the past years in the sector.”

Sanwo-Olu attributed the vote for education to the “achievement of a record high performance of 82 per cent in the 2022 West African Senior School Certificate Examination (WASSCE).”

He pledged to sustain strategic investment in human capital and channel resources to deliver more infrastructure to keep the state’s economy on the path of growth beyond next year.

He also earmarked N339 billion capital (20.06 per cent) to provide infrastructure in various sectors next year, while dedicating an aggregate of N191 billion, representing 11.29 per cent, to health and environment

The statement quoted the governor as saying that next year’s spendings would further demonstrate his administration ’s determination to scale up good governance and quality service to the people through the T.H.E.M.E.S Agenda, stressing that the budget would propel the state to higher level of fiscal growth and social development.

He said, “The Year 2023 Appropriation Bill, which will be the final budget of our administration before the 2023 general elections, expresses our unwavering determination to keep serving the people of Lagos through our development agenda.

“This Budget of Continuity will propel Lagos to the next fiscal level and economic growth. Next year, we will aggressively focus on completing ongoing projects, while also expanding our social intervention programmes and support for citizens, and for micro and small businesses.”

Of the proposed 2023 expenditure contained in the statement, N1.343 trillion would accrue from internally generated revenues (IGRs) and federal transfers, while a deficit financing of N350 billion would be sourced from external and domestic loans, and from bonds projected to be within the state’s fiscal sustainability parameters.

The governor also proposed an aggregate of N67.4 billion, representing 3.98 per cent of the 2023 budget, to achieve the government’s social housing programme and provide amenities across communities.




     

     

    Sanwo-Olu justified the state’s continued investment in security, noting that Lagos was relatively safer than most parts of the country that are facing serious security breaches. He raised the vote dedicated to public order and safety to 4.78 per cent to sustain security spending and make Lagos safer for living, working and investment.

    He said, “I am delighted to announce that we are on the cusp of successfully birthing a fully functional light rail system in the metropolis. This is the first project of its kind, fully funded, by a sub-national government, anywhere in the world. The Lagos Blue and Red lines are scheduled to commence commercial operations next year. The combination of both rail lines will reduce the daily commute time of millions of Lagosians from 2.5 hours to 30 mins, significantly enhancing productivity and improving quality of life.

    “We have also successfully facilitated more than $600 million in investment into the Lekki Deep Sea Port, working closely with our private and public sector partners. From next week, the test-running of the Lekki seaport will start. This brand-new port has three times the capacity of the Apapa Port and will give Lagos almost 50 per cent of the shipping logistics volumes in West Africa. In addition, we have just recently received the Federal Government’s approval for the development of the Badagry Deep Sea Port.”

    Sanwo-Olu said the current year’s budget had recorded 74 per cent performance by the end of the third quarter, but raised the prospects of closing the implementation above 80 per cent by the end of the year.

    Experienced Business reporter seeking the truth and upholding justice. Covered capital markets, aviation, maritime, road and rail, as well as economy. Email tips to [email protected]. Follow on Twitter @theminentmuyiwa and on Instagram @Hollumuyiwah.

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