LAGOS N3TN BUDGET PASSES SECOND READING, LAWMAKERS CAUTION AGAINST LOANS
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The Lagos State House of Assembly on Monday debated the 2025 Appropriation Bill of N3.005 trillion, which Governor Babajide Sanwo-Olu presented to the lawmakers last Thursday.
The Speaker, Mudashiru Obasa, who presided over the plenary, committed the bill to a joint Committee on Appropriation and Finance for review with a mandate to report back in one month.
Earlier, the Chairman, House Committee on Budget and Economic Planning, Sa’ad Olumoh, provided an overview of the proposed spending with a breakdown of items in the estimate.
While raising concerns over the projection of N408 billion deficit financing in the budget, Olumoh, who noted that loans were good when used for actual purposes, said, “We have to be cautious about it. We need a sustainable and pragmatic way of financing our budget so that we don’t rely solely on loans.
“So, I would suggest we look at a realistic budget and ways to finance it using alternatives like the Public-Private Partnership models.
“I also want to implore my colleagues that for the 2025 budget, we need to scrutinise it to prevent wastage properly.”
He commended the state government for its intentions as stipulated in the budget estimate.
Deputy Majority Leader Adedamola Kasumu, called for a careful budget review to enable comparative analysis and feasibility.
Another lawmaker, Gbolahan Yishawu, representing Eti-Osa Constituency 2, noted the absence of allocations for electricity, infrastructure and climate change initiatives while suggesting a five-year retrospective analysis of deficit funding.
His colleague, Femi Saheed, representing Kosofe Constituency 2, stressed the importance of linking borrowing to critical infrastructure like electricity while ensuring revenue efficiency and addressing potential financial leakages.
On his part, another lawmaker Desmond Elliot, who represents Surulere Constituency, highlighted the omission of food security measures in the proposal while urging the inclusion of initiatives to meet citizens’ needs.
Last Thursday, the state governor told the lawmakers that the budget aimed to achieve a 59% capital expenditure and 41% recurrent expenditure ratio, with deficit financing to be sourced through external and internal loans and bonds.
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