Lagos Assembly Begins Review of N3.005 Trillion 2025 Budget, Sets One-Month Deadline for Report
The Lagos State House of Assembly has commenced deliberations on the 2025 appropriation bill of N3.005 trillion presented by Governor Babajide Sanwo-Olu last week.
During the plenary session on Monday, Speaker Mudashiru Obasa referred the budget to a joint committee on appropriation and finance for a thorough review, instructing the committee to report back within one month.
Chairman of the House Committee on Budget and Economic Planning, Hon. Sa'ad Olumoh, provided lawmakers with a detailed breakdown of the proposed budget. He raised concerns about the projected N408 billion deficit financing, emphasizing the need for prudence in relying on loans.
“While loans are useful when directed toward actual purposes, we must explore sustainable and pragmatic ways to finance our budget. Alternatives like Public-Private Partnerships (PPPs) should be considered to reduce dependency on borrowing,” Olumoh advised. He also urged the Assembly to scrutinize the budget to minimize potential wastage.
Other lawmakers echoed similar concerns during the debate. Deputy Majority Leader, Hon. Adedamola Richard Kasumu, advocated for a comparative and feasibility review of the proposal. Hon. Gbolahan Yishawu (Eti-Osa 2) pointed out the lack of allocations for electricity infrastructure and climate change initiatives, recommending a five-year analysis of deficit funding for better planning.
Hon. Femi Sheed emphasized the need to link borrowing to critical infrastructure projects such as electricity, while ensuring efficient revenue generation and addressing financial leakages.
Hon. Desmond Elliot expressed concerns over the omission of food security measures, urging the inclusion of initiatives to address the immediate needs of Lagos residents.
Governor Sanwo-Olu had earlier stated that the proposed budget aims for a 59% capital expenditure and 41% recurrent expenditure ratio, with deficit financing sourced from external and internal loans and bonds.
The House has pledged to conduct a meticulous review of the budget to ensure alignment with the state's developmental goals and financial sustainability.
Eromosele Ebhomele
Chief Press Secretary to the Speaker of the Lagos State House of Assembly
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