The N3.005 trillion 2025 appropriation bill, which Governor Babajide Sanwo-Olu gave to the lawmakers last Thursday, was discussed by the Lagos State House of Assembly on Monday.
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The bill was referred to a joint appropriations and financial committee for assessment by Speaker Mudashiru Obasa, who oversaw the plenary, with a one-month turnaround time. Prior to this, Hon. Sa’ad Olumoh, the chairman of the House Committee on Budget and Economic Planning, gave a summary of the estimated spending along with a breakdown of its components.
“We have to be cautious about it,” Olumoh said, voicing reservations over the budget’s projected N408 billion deficit finance. He added that loans are beneficial when used for their intended reasons. In order to avoid depending entirely on loans, we must have a practical and sustainable method of funding our budget.
Therefore, I propose that we examine a reasonable budget and methods of funding it through alternatives such as the Public Private Partnership models. “I also want to convince my colleagues that we must thoroughly examine the 2025 budget in order to avoid waste.” He gave the government credit for its goals as outlined in the budget forecast. Adedamola Richard Kasumu, the deputy majority leader, demanded that the budget be carefully examined in order to allow for feasibility and comparative study.
A five-year retrospective study of deficit funding was proposed by Hon. Gbolahan Yishawu (Eti-Osa 2), who also pointed out that funding for climate change projects and power infrastructure was missing. Hon. Femi Sheed, his colleague, emphasized the significance of tying borrowing to vital infrastructure, such as power, while maintaining revenue efficiency and addressing possible financial leaks.
In his own words, Hon. Desmond Elliot encouraged the inclusion of programs to address the needs of the populace while drawing attention to the proposal’s lack of food security measures.
As you may remember, Governor Sanwo-Olu informed the lawmakers that the budget’s goal is to attain a capital expenditure ratio of 59% and a recurrent expenditure ratio of 41%. The deficit would be financed by both domestic and foreign loans and bonds. Eromosele Ebhomele is the Lagos State House of Assembly Speaker’s chief press secretary.
