Lagos HoA to reorder 2024 budget over poor performance of MDAs

Lagos State Governor Babajide Sanwo-Olu has sought the permission of the House of Assembly to reorder the 2024 budget, which was signed into law in January and has been partially implemented.

In a letter sent to the legislative chamber on Monday, August 26, the governor cited a perceived underperformance of several Ministries, Departments, and Agencies (MDAs) as the primary reason for this decision.

Governor Sanwo-Olu, while expressing gratitude to the Assembly for its ongoing support and cooperation, noted that the government has been striving to extend the dividends of democracy throughout the state by making appropriate budgetary provisions.

However, he highlighted that the 2024 budget, totaling ₦2.267 trillion, has only achieved a 75% overall performance as of June 30, 2024, falling short of the 100% target.

The governor’s letter further explained that the recurrent expenditure stood at 4%, while capital expenditure was at 69%, resulting in a 58.42% capital-to-recurrent ratio. He pointed out that some MDAs, which were responsible for implementing capital projects, were underperforming, while others had nearly exhausted their budget provisions.

According to him, this situation necessitated a reevaluation of budget priorities to ensure more effective use of capital investments in the remaining months of 2024.

Governor Sanwo-Olu also noted that there were no new revenue sources available for the rest of the year, which led to the decision to reorder the budget. He proposed reallocating a total of ₦151.358 billion from the current budget provisions, with ₦48.5 billion coming from recurrent expenditure and ₦101.85 billion from capital expenditure.

The governor called on the House to consider the proposal, emphasizing the need to address the state’s challenges with the limited resources available.

Reacting to the governor’s message, several lawmakers expressed disappointment over the noticeable mismanagement of state resources by some MDAs. They supported the motion to address the governor’s request promptly.

Speaker of the Assembly, Rt. Hon. Mudashiru Obasa, echoed the governor’s concerns, stating that it is essential to reassess the budget to ensure it aligns with the state’s needs. He acknowledged that while some MDAs have utilized their allocations effectively, others have not delivered satisfactory results.

Given the current economic hardship and fluctuations in exchange rates, the speaker argued that it was logical to consider the proposed budgetary adjustments.

While approving the governor’s request, Hon. Obasa urged the budget committee to be vigilant in avoiding loopholes that could lead to mismanagement during the proposed review. The House is expected to deliberate further on the matter in the coming days.