The Lagos State governor, Mr Babajide Olusola Sanwo-Olu, recently presented the proposed 2025 Annual Budget tagged: “Lagos 2025 Budget of sustainability” to the Lagos State House of Assembly for consideration and approval. For those that are not familiar with the budget preparation process, it begins in January each year with a call circular sent to various ministries, departments and agencies (MDAS). In this circular, the MDAS are requested to prepare their annual budget for both recurrent and capital expenditures. The 2025 proposed Lagos State budget has been prepared by various ministries, departments and agencies and forwarded to the governor for further necessary action.
First and foremost, I will like to commend the Lagos State Government for consistently delivering budget performance in excess of 70 percent in the last three years. In preparing the 2025 proposed budget, the Lagos State Government has incorporated the input of relevant stakeholders; not only that, but also studied the global and local economic realities. According to the write-up by one Tayo Ogunbiyi titled: “Reflecting on Lagos 2025 Budget of Sustainability” which appeared in the Vanguard Newspaper of Monday November 25, 2024, the proposed 2025 budget consists of a recurrent expenditure of N1.239 trillion representing 41 percent of the total budget and a capital expenditure of N1.766 trillion which represents 59 percent of the budget.
The breakdown of the proposed 2025 budget is as follows: A total of N231.176 billion will be spent on Environment which constitutes the lion share. N204.005 billion will be spent on education, N124.073 billion on security, safety and public order while social protection will gulp N47.077 billion. The Lagos State Government proposed a total of N3.005 trillion budget estimate, earmarking a huge capital investment of N908.7 billion to the economic affairs sector which consists of tourism and creative arts, agriculture, transportation, works and infrastructure, industry and investment.
The proposed 2025 Budget is well articulated, however, I have some comments to make. First and foremost, with due respect, I would like to suggest that Education sector should be given priority over other sectors. It has been observed that over the years, the budget for education sector has consistently been inadequate even at the federal level. It is crucial to remember that the United Nations Educational Scientific and Cultural Organisation (UNESCO) has recommended 20 percent of our annual budget be allocated to the education sector. Unfortunately, this recommendation has not been consistently implemented.
The reasons why I think education sector be given priority are as follows: firstly, human capital development is very critical for national development and that is why education is a top priority in many other parts of the world. Secondly, the Lagos State Government has three universities namely: Lagos State University, Ojo; The University of Education at Ijanikin and The University of Science and Technology, Ikorodu. Due to the current economic realities in the country, the subvention allocated to these institutions is no longer sufficient to meet their needs. Therefore, there is need to adequately fund these universities so as to enable them meet the rising cost of learning materials, pay the new salary structure resulting from the recently approved minimum wage for workers in the state, as well as carrying out research work. Thirdly, our youths are the future leaders. Therefore, it is the responsibility of the government to provide them with quality education so that they can become responsible citizens, and be able to contribute to national development. Fourthly, the state government has to make provisions for the out-of-school children and find a way of reducing the numbers. In addition, the government should also improve on school enrolment, retention, transition and completion.
Other areas where I want the state government to focus its attention on are in the areas of energy and agriculture. Obviously, electricity is unarguably one of the most important factors of production and economic growth. Today, Nigerians have been groaning in darkness exacerbated by the fuel subsidy removal and free falling naira value. Many businesses are grounded because they can no longer afford petrol or diesel to run their generators as a litre of petrol goes for as high as N1,200 in some places while a litre of diesel goes for N1,600. Due to incessant power supply coupled with high cost of petroleum products, most industries particularly in Lagos State have closed down their facilities resulting in high unemployment rate among the youths.
I would like to advise the Lagos State Government to consider exploring alternative sources of energy such as solar, wind and geothermal which are cheaper and environment friendly.
Another area which I want the state government to spend money on is the agricultural sector. This year alone, the prices of food stuffs such as rice, beans, yams, garri, tomatoes, onions and some other food items have increased more than 200 percent.
According to the latest statistical figures on food inflation by the National Bureau of Statistics (NBS), the food inflation rate in the month of September 2024 was 37.77 percent on a year-on-year basis, 7.13 percent higher than the rate recorded in September 2023 (30.64 percent). The rise in food inflation on a year-to-year basis was caused by the twin policies of the Federal Government, namely oil subsidy removal and devaluation of our local currency.
In the area of Internally Generated Revenue (IGR), the Lagos State Government should also try to explore the economic potentials in the Tourism Sector. For instance, Kenya generates a lot of money from tourism and I think Lagos State Government can borrow a leaf from Kenya. Moreover, efforts should be intensified to ensure that people living in Lagos State pay their taxes promptly so as to assist the Lagos State Government in providing the dividend of democracy.
Finally, all hands must be on deck to ensure that the 2025 budget is fully implemented.
Oladipupo writes via [email protected]
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