Lagos Assembly passes N491.8bn 2012 budget

LAGOS State House of Assembly has passed a budget of N491.827 billion as the total amount to be spent by government in the 2012 fiscal year.


 

By Sulaimon Alamutu

 

LAGOS State House of Assembly has passed a budget of N491.827 billion as the total amount to be spent by government in the 2012 fiscal year.

 

The budget, which was over N6 billion above the N485.292 estimate presented to the Assembly by Governor Babatunde Fashola on November 14, 2011, was unanimously passed on Thursday after several hours of intensive debate by the lawmakers.

 

Fashola had presented a budget estimate of N485.292 billion to the House consisting of N198.182 billion as recurrent expenditure, N252.59 billion as capital expenditure with N19.261 billion as capital receipt.

 

It was learnt that the governor had lobbied the lawmakers for a quick passage of the budget before they go on recess.

 

As at Thursday afternoon, representatives of ministries, agencies and parastatals were still defending their budget estimates before various committees of the Assembly.

 

Highlights of the budget include N233.506billion, recurrent expenditure and N258.321 billion capital expenditure

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http://www.momentng.com/en/news/5745/lagos-assembly-passes-n4918bn.html

Almost 50 / 50. Does anyone have the breakdown?

too small for population of over 15 mil.

Breakdown please anyone:

Revenue sources - FG allocation, IGR and loans.
Expenditure details- LASHA, Governor's office, capital projects, security/contingency votes etc.

It would be interesting to also have the budgets for Lagos since 1970, if possible.

nakedall:

too small for population of over 15 mil.

You just sit down, lean back and watch them outperform the FG even with this tiny amount.

You'd be surprised at how far a little money can go when the government's first priority isn't stealing as much as possible.

Bridal Business Directory:

For proportional watchers recurrent expenditure is 47.4%. Interested to see the breakdown. The structure of financial management across most federating units look remarkably similar. Its just a matter of scale.

nakedall:

too small for population of over 15 mil.

I disagree, if anything compared to the rest of the country it's one of the best out there.

anonimi:

Breakdown please anyone:

Revenue sources - FG allocation, IGR and loans.
Expenditure details- LASHA, Governor's office, capital projects, security/contingency votes etc.

It would be interesting to also have the budgets for Lagos since 1970, if possible.

They don't provide further breakdown details, although most news sources say the Assembly is on the holiday recess, so it will be nice to see what they have after the total budget has been approved. From what I see, LASG House of Assembly is approving the budget piece by piece, which is a slow process but very effective because each dept can defend what they submitted.

The budget is often on the Lagos State govt website. I'm not sure if it is there yet, can't see it.

http://www.lagosstate.gov.ng/

edoyad:

I disagree, if anything compared to the rest of the country it's one of the best out there.

Compared to other states in what way?.

VoodooDoll:

The budget is often on the Lagos State govt website. I'm not sure if it is there yet, can't see it.

http://www.lagosstate.gov.ng/

I couldn't see it either, I guess it's been approved in parts, the final bill should be passed probably in another month or so. Till then, we cannot make any comparison for now, at least, they were key items such as Education and Healthcare that was approved for N32.4 and N18.4 respectively. Although as compared to the federal statistics in % budgeted, the fed budget is a slight higher than LAGOS.

Eko Ile:

Compared to other states in what way?.

In every way: recurrent to Capital expenditure ratio and even in relation to size of the population.

.

Population is roughly 20 million. Is N25,000 per head in annual budget really that high? That is about $164.

Akwa Ibom for example will have a similar budget, yet has 1/4 of the population.

It is higher of course per capita than all of the non-oil producing states. But not impressive in an absolute sense. At least in my opinion.

edoyad:

In every way: recurrent to Capital expenditure ratio and even in relation to size of the population.

The poster you quoted said the budget is too small and you replied by saying you disagreed.

The question is why your disagreement?

ekt_bear:

Population is roughly 20 million. Is N25,000 per head in annual budget really that high? That is about $164.

Akwa Ibom for example will have a similar budget, yet has 1/4 of the population.

It is higher of course per capita than all of the non-oil producing states. But not impressive in an absolute sense. At least in my opinion.

Haba, where you not the same person who quoted according to a Reuters or Bloomberg's articles about two months ago that Lagos population was about 18million latest @ $3,000 per capita? This same population you disputed that the 15 million estimate wasn't accurate, however, wasn't that how they arrived at $54billion? How come is the same population floating roughly about 20 million?

ekt_bear:

Population is roughly 20 million. Is N25,000 per head in annual budget really that high? That is about $164.

Akwa Ibom for example will have a similar budget, yet has 1/4 of the population.

It is higher of course per capita than all of the non-oil producing states. But not impressive in an absolute sense. At least in my opinion.

Akpabio, Tuesday, presented a budetary
allocation of N397. 141 billion for 2012
financial year to the State House of
Assembly for consideration and approval.
This came against the backdrop of
N419.785 billion budgeted for this financial
year by the state government.
Governor Akpabio said, while presenting the
budget, that of the amount, N66. 244 billion
is for Recurrent Expenditure while N330.
897 billion goes for Capital Expenditure.
He noted that the projected recurrent
revenue for next year is put at N263.777
billion representing a decrease of N12. 817
billion or five per cent compared with
N276.595 billion of 2011 corresponding
revised estimates.
A breakdown, according to him, showed
that Internally Generated Revenue has
N21.646 billion, Statutory Allocation – N36
billion, Derivation- N200.132 billion, while
N6 billion would accrue from Value Added
Tax (VAT) .
He said: “For 2012 fiscal year, Recurrent
Expenditure is estimated at N66.244 billion
made up of N33. 286 billion for Personnel
Cost and N19. 855 billion for Overhead Cost
and N13. 103 billion for Consolidated
Revenue Fund charges including gratuities
and public debt.
The total capital receipts and expenditure
for 2012 is estimated at N330. 897 billion
as against the corresponding revised figure
of N360. 222 billion for 2011, a decrease of
N29.325 billion or eight per cent.

Well you're making some sense there, but Akwa ibm's is a whopping 100 bn. less than that of lagos. And when you consider that more than half of A. ibom's is sourced from oil derivation funds, i don't think lag has done too badly.

manny4life:


Haba, where you not the same person who quoted according to a Reuters or Bloomberg's articles about two months ago that Lagos population was about 18million latest @ $3,000 per capita? This same population you disputed that the 15 million estimate wasn't accurate, however, wasn't that how they arrived at $54billion? How come is the same population floating roughly about 20 million?

The goal is not an exact #, but a ballpark estimate.

I'm choosing extremely round figures to make the calculations easier. 500/20 is easier to calculate than 492 divided by 18 point whatever. . .

Lagos GDP is c$54bn. Let's call it $50bn

Budget is N491bn, let's call it N500bn.

N500bn is roughly $3.23bn so round down and you get $3bn.

Lagos state budget is roughly 6% of Lagos's GDP.

In comparison:
Nigeria's GDP is $350bn (some figures are higher or lower).

Budget is N4,700bn or roughly $30.2bn let's call it $30bn.

So our national budget is 8.5% of our National GDP.

Given the huge infratructual deficit Nigeria has, should we be taxed more to provide infrastructure?

Interesting to see how that compares with the other states and other African countries.

Nigeria's GDP is not anywhere near $350 billion. PPP yes, but nominal, no. Nominal is on the order of $200-250 billionish or so.

@EktBear

Nigeria's GDP is being recalculated and rebased from the 1990s to c 2008.

Thus the recalculation expects the GDP to be c$350bn. Which experts believe is a more accurate reflection of our GDP.

It was all over Reuters last month.

GDP rebase link:

http://af.reuters.com/article/libyaNews/idAFL5E7MB2D420111111?pageNumber=2&virtualBrandChannel=0

ekt_bear:


The goal is not an exact #, but a ballpark estimate.

I'm choosing extremely round figures to make the calculations easier. 500/20 is easier to calculate than 492 divided by 18 point whatever. . .

Ok brother, I got you, don't scare us like that again, 

ekt_bear:

Nigeria's GDP is not anywhere near $350 billion. PPP yes, but nominal, no. Nominal is on the order of $200-250 billionish or so.

Retracted

VoodooDoll: Hrm, ok. So you are right. . . Nigerian economy is probably much larger than the #s suggest, at least based on these rebasing articles.

Btw where did you get the 350 from? The rebasing hasn't been done yet, has it? So we won't have an estimate until it is done.

Anyway, fine, we can use that number. It is probably a better estimate that 250.

Rebasing per the Reuters link puts it at around $390bn. I've seen figures elsewhere which are more modest. 

GDP calculation isn't an exact science but if we are still using a 1990 base year then the old numbers look seriously outdated.

From the above the capital exceeds the rucurrent. That looks good to me not like the stupid budget presented by FG where reccurent is about 75%. Works budget for FG is about 171b (just about 3%) in a country where there is no infrastructure. Well may be they are planning to privatise all the roads.

tunene:

From the above the capital exceeds the rucurrent. That looks good to me not like the silly budget presented by FG where reccurent is about 75%. Works budget for FG is about 171b (just about 3%) in a country where there is no infrastructure. Well may be they are planning to privatise all the roads.

Most states in Nigeria, if not all, have capital expenditures that exceed recurrent. While that may look good at the surface, it's not as rosy as it sounds. Many of these governors use these capital funds in handing out over inflated contracts ti themselves and their allies. At the end the money isn't so "capital" afterall, Just a means of looting.

Well i trust the case isn't the same in Lagos

VoodooDoll:

Rebasing per the Reuters link puts it at around $390bn. I've seen figures elsewhere which are more modest. 

GDP calculation isn't an exact science but if we are still using a 1990 base year then the old numbers look seriously outdated.

Eh. They got the # by just looking at how much rebasing increased Ghana's economy by:

When Ghana made rebased its vital statistics last November, output shot up by 60 percent.

A similar increase for Nigeria's $247 billion economy would bring it to $395 billion, much closer to the continent's top economy, South Africa -- currently at $422 billion.

That really isn't very convincing. They are guessing just like we are.

Anyway like I said, I don't have a problem with this 350 #. . . it is probably closer to the truth than say 250.

Reference:

For proportional watchers recurrent expenditure is 47.4%. Interested to see the breakdown. The structure of financial management across most federating units look remarkably similar. Its just a matter of scale.

I noticed that.

Rebasing will likely take the economy around 250-280 because it would still reflect other realities. Ghana's rebasing included oil which was not previously there,  There will be no new sector so the 390 billion dollars being thrown around is wrong

This is likely a cheap way to get South Africa out of the front of Africa and stick Nigeria there because Goodluck Jonathan is mainly a puppet of the Western establishment and does what the French and English want. 

So, the writer of the Africa article is either a slowpoke or in on a dirty agenda. There are no new ground breaking sectors coming in so, it should not jump to that extent.

Food for thought.

How can a person whose country Al Qaeda is taking over,  who recognized Al Qaeda's take over of Libya and other ills lead Africa.??


He should focus on security and with security the economy will grow to unheard of heights. Rebasing the economy if done transparently would mainly attract investors but, with no security investors will run. If Boko Haram keep their activities up this action will mean nothing.


So, focus on Security security Security!!!

But the economy is already at $250 to $280 using 1990 figures when our population was 88.5m. Our population is now 160m people, there is only so much guessing and adapting you can do to update the numbers.

GDP calculation is an art and most countries massage the numbers so it would be interesting to see what number they calculate especially as PDP has an interest in the biggest number so they can borrow and damn us all to hell.