By Modupe Gbadeyanka
Governor Babajide Sanwo-Olu of Lagos State has expressed the intention of the executive arm of government to borrow the sum of N250 billion for some critical projects in the state.
Mr Sanwo-Olu transmitted a letter to the legislative arm of government yesterday, seeking its approval for the money, which has a fixed rate bond of N100 billion from the capital market and an internal loan of N150 billion.
In the letter read on the floor of the Lagos State House of Assembly by the Clerk, Mr Sani Azeez, the Governor explained that his administration intends to use the funds for the completion of Lagos-Badagry express road; Agege Pen cinema overhead bridge; Agric-Isawo road; Bola Ahmed Tinubu-Igbogbo road; rehabilitation of schools; initiate and complete smart city project and zero tolerance for portholes, among others.
According to him, the budgetary provisions of recurrent and capital budget of ministries, departments and agencies were not likely to be utilized before the end of the year, saying that N34.050 billion could be re-ordered.
He said government was constrained by the lack of revenue for the remaining months of the year and that it would not be in a position to propose a supplementary budget, which informed the recourse to re-ordering 2019 budget because as at August 31, 2019, budget of the present fiscal year had a 71 percent overall performance.
“Further analysis shows that the recurrent expenditure stood at 80 percent while capital expenditure was at 64 percent 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,” Mr Sanwo-Olu said.
He urged all other arms of government to cooperate with him to ensure spending in priority areas was improved on so as to keep electoral promises to the citizens.
Speaker of the House, Mr Mudashiru Obasa, who asked the joint committees on Finance and Budget and Economic Planning to look into the request, gave till October 21, 2019 for feedback.
Business Post recalls that on October 1, 2019, the Governor, at the annual The Platform held in Lagos, hinted that his government may consider approaching the capital market to raise funds.
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