Lagos State governor Babajide Sanwo-Olu is seeking a loan of N250 Billion.
Sanwo-Olu made this known in a letter to the State Assembly while re-ordering the 2019 Budget of the state according to the News Agency of Nigeria (NAN).
According to the letter by Sanwo-Olu, the 2019 Budget proposed by ex-Gov. Akinwumi Ambode could no longer be funded hence the need for its re-ordering and sourcing for more funds.
The governor’s letter was read on the floor of the House during plenary on Tuesday by the Clerk to the Assembly, Mr Sani Azeez.
According to the letter, the loan was broken down as: a fixed rate bond of N100 billion from the capital market and an internal loan of N150 billion.
The governor explained that the budgetary provisions of recurrent and capital budget of ministries, departments and agencies were not likely to be utilized before the end of the year, saying that N34.050 billion could be re-ordered.
In the letter, the governor stated that his administration was constrained by the lack of revenue for the remaining months of the year and that it would not be in a position to propose a supplementary budget, which informed the recourse to re-ordering 2019 budget.
He said the budget as at 31st August, 2019 had a 71 per cent overall performance, which was below the set target of 100 per cent.
“Further analysis shows that the recurrent expenditure stood at 80 per cent while capital expenditure was at 64 per cent performance, portending a 49:51 capital/recurrent ratio against the target of 55:45.
“It should be noted that some of the major MDAs that are supposed to implement the capital expenditure are performing below expectation, while others have almost exhausted their budgetary provisions,” Sanwo-Olu explained in the letter.
Speaker of the House, Mudashiru Obasa subsequently committed the governor’s request to the joint committees on Finance and Budget and Economic Planning.
They are to report back to the House on Monday.
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