Lagos needs $30bn to execute 30 capital projects in 5yrs – Ambode

LAGOS State governor, Mr Akinwunmi Ambode, has said that the state would require at least $30billion to adequately deliver 30 most impactful infrastructural projects over the next five years.

The governor disclosed this on Monday, while speaking shortly before inaugurating a 12-member Economic Advisory Committee at the Lagos House, Ikeja.

The 12-member Economic Advisory Committee is headed by renowned economist and Founder of Agusto & Co, Mr Olabode Agusto, while Commissioners for Finance, Mr Akinyemi Ashade; Energy and Mineral Resources, Mr Olawale Oluwo, and Commerce, Industry and Cooperatives, Mr Rotimi Ogunleye, are members of the Committee.

Others are former Managing Director, Skye Bank, Mr Kehinde Durosinmi-Etti; former Country Senior Partner, PwC, Mr Kenneth Igbokwe; Founder/CEO Bestman Games Ltd, Mrs Nimi Akinkugbe; Managing Partner, Dalmeida, Ogunlana & Co, Mrs Adenike Ogunlana; Managing Director, Vetiva Capital, Dr Laolu Mudashiru; former Minister of Science & Technology, Mrs Omobola Johnson; Deputy Managing Director, Wema Bank Plc, Mr Moruf Oseni and Mrs Yetunde Akinloye who doubles as Secretary of the Committee.

He said the projected figure represented about $6billion per annum, whereas the provision for capital projects in the 2017 Budget was pegged at N500billion (about $1.6billion).

Alluding to the fact that the projection clearly showed that government alone cannot address the infrastructure deficit; Governor Ambode said the inauguration of the Economic Advisory Committee was, therefore, a step in the right direction.

“If Lagos was a country and we are the fifth largest economy in Africa, then we have to start thinking about the number five. In that regard, you must not think taxes of Lagos State citizens or IGR, you must create some kind of platform that would allow some other people who are outside to tell us how to run a country in a state.

“Let me crave your indulgence to present a picture of what we are confronted with. Our 2017 Budget has earmarked about N500 billion (about US$1.6 billion) as capital spend. Whereas our recent Infrastructure needs analysis shows that over $30 billion would be required to achieve the 30 most impactful projects for the state over the next five years (an average of US$6 billion per annum).

“It is evident that government cannot address this from current resources. A key task of this Committee is, therefore, to provide specific advice on the overall finance strategy to bridge the massive infrastructure gap. I am, therefore, glad and privileged that nine competent and well respected Lagosians have accepted our request to serve in the Committee,” he said.

The governor, while highlighting some of the key functions expected of the Economic Advisory Team, said they would be expected to bring an independent perspective on economic and business issues with a primary role of offering advice to his administration under the four strategic 2012-2025 Lagos State Development Plan (LSDP) pillars of Economic Development; Infrastructural Development; Social Development and Security as well as Sustainable Development.

Governor Ambode said that whilst the committee was independent and largely constituted by members from the private sector, the need for integration and collaboration to ensure that the views were taken on board necessitated in having three members of the State Executive Council, led by the Commissioner for Finance in the team.

He expressed optimism that the economic team would further expand his administration’s all inclusive governance mantra and achieve the key objective of getting independent views on economic and business issues in delivering the mandate to the people.

Responding on behalf of other members of the Committee, Agusto assured that they would work diligently and focus on the priorities of the state government aimed at making life more comfortable for Lagosians.

Agusto noted that one of the major reasons why Lagos was making steady progress was the fact that businesses were thriving, adding that the Committee would take into cognizance the important role the private sector plays in that regard.