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BIG STORY

Happy Birthday Mr Governor! Celebrating Sanwo-Olu At 55

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Gboyega Akosile

Proverbs 22:29 states “Seest thou a man diligent in his business? He shall stand before kings; he shall not stand before mean men.” This biblical verse is the true reflection of Governor Babajide Sanwo-Olu of Lagos State, who clocks 55 today. Without any iota of doubt, the 55th birthday of Governor Sanwo-Olu is worth celebrating considering how he has made meaningful impacts in private and public sectors, especially in the last one year of his administration as the number one citizen in the Centre of Excellence.

Mr. Governor believes that an occasion of one’s birthday, especially a milestone such as the age of 55, should be a day to reflect on one’s purpose of existence in life and, according to him, is “to serve the humanity”. Therefore the governor in his charismatic leadership and passion for the vulnerable people decided not to have an elaborate feast for families, friends, political associates, and professional colleagues. Rather he has chosen the path of honour and genuine love for the needy in the society by asking people to channel the resources they intend to use for congratulatory advertisements in celebration of his birthday to taking care of the vulnerable people in the society. The governor, based on his passion for the state has also declared his intention to spend the better part of today to attend to many important State matters.

Sanwo-Olu’s gesture is going to bring relief to thousands of Lagosians, especially the vulnerable, whose lives are expected to be touched directly or indirectly by the millions of naira that could have been used for birthday messages for the governor. Sanwo-Olu’s decision is a reflection of his conviction that “the best birthday gift anyone would give him at this period is to identify those at the bottom of the pyramid wherever they reside, lift them up by putting smiles on their faces that way, they would have lifted his heart too.”

As a man who believes in putting smiles on the faces of others; someone who is passionate and empathetic towards people around him, the governor’s decision to have a low key celebration on his major milestone deserves a lot of accolades.

Lagos State is the commercial capital of Nigeria and Africa’s fifth-largest economy and based on its unique position as having the highest population density in Nigeria, the battle for the state usually dominates the country’s politics during the election period. This is why many political parties usually battle to be in control of the state. But despite several attempts by the opposition political parties, the progressive camp, which Sanwo-Olu belongs to, has been in charge of the State since the return of Nigeria to a democratic path on May 29, 1999.

The ruling party has provided good governance in Lagos State in the last 21 years and Governor Sanwo-Olu has been part of the State’s progressive trajectory in the past seventeen years. He was a member of the cabinet of the three previous governors. The banker, who turned politician began his political journey at 37 when he served as Special Adviser on Corporate Matters to the ex-deputy governor, Otunba Femi Pedro, and later Special Adviser to Governor Bola Tinubu on Corporate Matters in 2004. He was head of different ministries between 2004 and 2015 as Honourable Commissioner. Former Governor Tinubu appointed Sanwo-Olu as acting Commissioner for Economic Planning and Budget from 2004 to 2005 and later made him substantive Commissioner for Commerce and Industry in 2007. Also, former Governor Babatunde Fashola in 2007 appointed him as Commissioner of Establishment, Training, and Pensions. The incumbent governor also served as the Managing Director/CEO of the Lagos State Development and Property Corporation (LSDPC) under the immediate past governor, Mr. Akinwunmi Ambode.

His emergence as the governor of Lagos State was historic, considering the support that heralded his emergence as the standard-bearer of the All Progressives Congress (APC) during the party’s gubernatorial primaries. For the first time in Lagos politics, Sanwo-Olu defeated an incumbent governor to pick his party’s ticket. He won the March 2, 2019 governorship poll landslide, defeating 44 candidates other who contested against him.

As a man who has played an active role in the growth and development of the State in line with the ‘Lagos Master plan’, Sanwo-Olu didn’t disappoint Lagosians immediately he took over the mantle of leadership. Knowing the various challenges facing the state, Sanwo-Olu’s administration, working with a six pillars policy programme tagged T.H.E.M.E.S to deliver good governance to millions of Lagosians swung into action. T.H.E.M.E.S stands for; Traffic Management and Transportation; Health and Environment; Education and Technology; Making Lagos a 21st Century economy; Entertainment and Tourism; Security and Governance.

It is worthy of note that when Sanwo-Olu emerged as an APC governorship candidate, Lagos had literally become a dumpsite as heaps of municipal waste littered the streets. The state agency set up for waste disposal had been disengaged in a curious and controversial circumstance, leaving residents to resort to indiscriminate dumping of refuse, which became a daily eyesore, even to the government of the day. Apart from the issue of waste, there were several other issues of concern that the government faced when assumed office. The issues of heavy traffic, bad roads, and blockage of drainage, among others were monstrous in nature.

Governor Sanwo-Olu believes that government is a continuum and that was why he didn’t spend energy in his early days in office blaming the previous administration. Rather than giving excuses, Sanwo-Olu hit the ground running from his day one in office. He took a lot of bold steps in the early few weeks. To him, the task of achieving the ‘Greater Lagos’ he promised Lagosians must be accomplished.

Sanwo-Olu, within a week in office announced members of his kitchen cabinet as well as key appointments in the state to set the ball of governance rolling in the Centre of Excellence.

The governor also signed the Lagos State 2019 Appropriation Bill of N873,532,460,725 into law. As promised during the electioneering, Sanwo-Olu constituted his full cabinet within his first 60 days in office.

With the cabinet fully in place, the government swung into action by working hard to ensure that the people of Lagos State start enjoying dividends of democracy. The first 100 days in office was a huge success story for young several programmes and projects executed by the administration as there were several projects displayed in the scorecard.

Within his first 100 days in office, the issues of bad roads were aggressively addressed to ease movement across the State. For the government to achieve this, eight multi-national construction firms mobilized were ordered to carry out massive repair works on critical highways across the State. In addition to the efforts of the eight multi-national companies, extensive palliative and maintenance works were also carried out by Lagos State Public Works Corporation in different parts of the State. The State government also engaged the Public Infrastructure Improvement Partnership arrangement to ease traffic considerably in some parts of the State.

One of the important steps taken by the Lagos State government within the first 100days was the resuscitation of Adiyan waterworks, Phase Two, which has a production capacity of 70 million gallons per day. The government commenced the rehabilitation of the dam to increase the provision of safe drinking water to more than five million Lagos residents and to address the challenges of water-borne diseases.

The state government also put many measures in place to address waste management and environmental issues, among which are the acquisition of 10 new boats by the Lagos Waste Management Authority (LAWMA) to boost its marine waste operations in the state.

The Lagos Blue Box initiative was launched on September 5, 2019, in Community Recycling Centres across five councils with recyclers strategically positioned to help drive the process.

May 29, 2020, marked Sanwo-Olu administration’s one year and a critical look showed that he has delivered on a lot of his electoral promises. This is evident in the remarkable list of achievements he read out on June 12 during his Democracy Day broadcast titled “Great Leap towards a Greater Lagos” in commemoration of his administration’s first year in office.

Among the remarkable achievements of the Babajide Sanwo-Olu’s administration are; development of a reliable intermodal system of transportation, with investment in waterways and a light rail system; rehabilitation of roads; putting a plan in place to construct the 4th Mainland Bridge; two Mother and Child Centers (MCCs) at Eti-Osa and Igando respectively; free medical interventions in conjunction with BOSKOH Health Mission International and the Benjamin Olowojebutu Foundation to over 250,000 Lagosians across several locations in the State, huge investment in education and technology; construction of 13, 18 or 20 classroom blocks in some schools in Egbe, Ikorodu, Bariga, Shomolu, Ifako-Ijaiye and Epe areas of the state; signing of $629 million financing facility aimed at completing the Lekki Deep Seaport project and significant progress in the area of housing through four major housing projects that are ready for commissioning, among other laudable projects.

Governor Sanwo-Olu has also displayed uncommon leadership in African, putting Lagos on the global map as a very resilient state in the ongoing COVID-19 pandemic. Since Lagos became the epicenter of the pandemic in Nigeria in February 27, the governor has been up to the task as Incident Commander in ensuring that the pandemic is well managed in the State. This feat has earned Mr. Governor local and international recognition.

So far, Governor Sanwo-Olu’s action, which is largely putting a personal touch to governance has set the state is on the right path to Greater Lagos.

As he celebrates a major, I wish him the fulfillment of his heart’s desires for the good people of Lagos.

Happy Birthday, Mr. Governor!

Akosile is the Chief Secretary to Governor Babajide Sanwo-Olu

BIG STORY

Nigeria’s Crude Oil Production Now 1.8million Barrels Per Day (BPD) — NNPCL

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The Nigerian National Petroleum Company (NNPC) Limited says Nigeria’s oil production has reached 1.8 million barrels per day (bpd).

According to NAN, Lawal Musa, NNPC chief production war room officer, spoke during a briefing on the national oil company’s production on Thursday.

Musa, who doubles as a senior business advisor to Mele Kyari, NNPC group chief executive officer (GCEO), said the increased oil production followed the continuous dislodgement of pipeline vandals and crude oil thieves.

He said the achievement was based on the partnership between the leadership of the company, stakeholders, and security agencies.

“We achieved this because of the clear mandate by President Bola Tinubu to ramp up crude oil production in the country,” Musa said.

On November 11, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said Nigeria’s current production level, including crude oil and condensates, has reached 1.8 million barrels per day (bpd), up from 1.54 million bpd in September.

Enorense Amadasu, executive commissioner of development and production at NUPRC, said there are plans to raise the figure to 2 million bpd by year-end.

Amadasu said the country’s crude oil and condensate output is expected to increase amid a plan to open bids for 31 onshore and offshore oil blocks.

The next day, the Organisation of Petroleum Exporting Countries (OPEC) said Nigeria’s average daily crude oil production, excluding condensates, increased marginally to 1.33 million bpd in October.

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BIG STORY

FEC Approves $2.2bn Borrowing Plan To Support Economic Reforms

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The federal executive council (FEC) has approved a $2.2 billion external borrowing plan to strengthen the country’s finances and support economic reforms.

Wale Edun, the minister of finance and coordinating minister of the economy, spoke to journalists at the end of the FEC meeting on Thursday, presided over by President Bola Tinubu.

The minister said the financing package will be raised through a combination of eurobonds and sukuk.

He said approximately $1.7 billion is expected from the eurobond offer and $500 million from the sukuk financing.

The minister disclosed that the borrowing would happen this fiscal year, stressing that the ultimate funding arrangement would be decided by market conditions and the transaction adviser’s counsel.

“The first objective is to complete the federal government’s external borrowing programme with the approval of the $2.2 billion financing package, which will include access to the international capital market through a combination of Eurobonds and Sukuk bonds —approximately $1.7 billion from the Eurobond offer and $500 million from Sukuk financing,” Edun said.

“The actual composition of the financing will be finalised once the national assembly has considered and approved the borrowing plan.

“After the external borrowing approval is granted, the funds will be raised as soon as possible within the year.

“The exact combination of instruments will depend on the advice of transaction advisers and market conditions when we decide to enter the market.

“Earlier in the year, we demonstrated the resilience of the Nigerian financial markets and their capacity to handle more complex and sophisticated offerings, such as the domestic issuance of dollar bonds that attracted investors from both Nigeria and abroad.”

Edun said the success of the domestic dollar bond demonstrates the Nigerian financial market’s tenacity.

He said the most recent overseas borrowing was “made possible by the government’s economic agenda, which includes market-based pricing for important economic variables like foreign exchange and petroleum goods.”

The minister said the council also approved the establishment of a N250 billion real estate investment fund with the goal of addressing Nigeria’s housing deficit.

“Approval has been granted for the Ministry of Finance Incorporated (MOFI) real estate investment fund,” he said.

“This fund will serve as the basis for the revival of long-term mortgage financing in the Nigerian economy.

“The MOFI real estate investment fund will initially amount to N250 billion and will provide low-cost, long-term mortgages to Nigerians who wish to acquire homes. It will help address part of the 22 million-unit housing deficit.

“Of course, it will create jobs, stimulate economic growth, and pave the way for other private sector investors to participate in the housing construction industry, with significant benefits for the broader economy.

“The concept is long-term. Investors will have the opportunity to earn market rates of interest and returns on investment, blended with seed funding of N150 billion.”

Edun said the initiative will provide Nigerians with the opportunity to secure mortgages at interest rates significantly lower than the current market rates, which can exceed 30 percent, with tenures that could extend up to 20 years or more.

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BIG STORY

President Tinubu May Present N47 trillion 2025 Budget To National Assembly Today

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The Federal Government on Thursday approved the Medium-Term Expenditure Framework for 2025 – 2027 and Fiscal Strategy Paper.

According to the MTEF, the proposed 2025 budget size is N47.9tn, with new borrowings of N9.22tn, the Minister of the Budget and Economic Planning, Abubakar Bagudu, told State House Correspondents after this week’s Federal Executive Council meeting at Aso Rock Villa, Abuja.

Bagudu announced, “The Federal Executive Council approved a memorandum by the Ministry of Budget and Economic Planning, which was presented by the Director-General of the Budget Office [Mr Tanimu Yakubu] on the Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2025 – 2027.”

The disclosure comes after weeks of delay as President Bola Tinubu prepares to present the 2025 Appropriation Bill to the National Assembly, his second since assuming office in May 2023.

The MTEF, a critical tool the FG uses to outline its fiscal strategy over three years, establishes macroeconomic assumptions and targets that guide national budgeting. It also includes projections of key economic variables such as oil prices, exchange rates, inflation, and growth rates.

For the 2025-2027 period, the MTEF sets out parameters, including an oil price benchmark of $75 per barrel, an oil production target of 2.06 million barrels per day, an exchange rate of N1,400 to the US dollar, and a GDP growth rate of 4.6 percent.

The FG’s projected aggregate expenditure for 2025 is N47.9tn, with planned borrowing of N13.8tn, equating to 3.87 percent of GDP.

The minister explained, “For the 2025-2027 period, the MTEF sets out parameters including an oil price benchmark of $75 per barrel for 2025, oil production of 2.06 million barrels a day, as well as an exchange rate of N1400 to the dollar and GDP growth of 4.6 percent.”

“It is expected that for 2025, the Federal Government’s budget estimate, the aggregate expenditure is estimated at N47tn, and this includes a borrowing of N13.8tn, which is 3.87 percent of the estimated GDP.

“The budget size that was approved for presentation to the National Assembly in the MTEF is N47.9tn with new borrowings of N9.22tn to finance the budget deficit in 2025 as well as noting that we need to sustain the commendable market deregulation of petroleum prices and exchange rate, and to compel the Nigerian National Petroleum Corporation Limited to lower its oil and gas production cost significantly, and even to consider the need to amend the relevant sections of the Petroleum Industry Act 2021 to address the significant risk to Federation.”

“The figures were only for 2025, even though there are projections for 2026 and 2027 in the document, which have different figures for the oil price benchmark for the two years,” he added.

Bagudu said Thursday’s memorandum sought the council’s endorsement of the MTEF for submission to the National Assembly, a requirement under the Fiscal Responsibility Act 2007.

The MTEF begins with a macroeconomic overview. It notes that despite global economic challenges, the Nigerian economy is on a positive trajectory, showing two consecutive quarters of growth, with a 3.19 percent increase in real terms in the second quarter of 2024, the budget minister explained.

However, he acknowledged the need to combat inflation, strengthen economic resilience, support vulnerable populations, bolster high-employment sectors, improve the business climate, and effectively implement youth and social investment programs.

He revealed that the framework, alongside the FSP, also includes a review of the 2024 budget implementation, highlighting progress in revenue collection and expenditure management, though some targets have fallen short. The report also shows that non-oil revenue streams outperform expectations, Bagudu said.

On the 2024 budget performance, he said, “Actual spending as of August 2024 ending was N16.98tn as against the prorated spending target of N23.37tn at the end.

“Of this amount, N7.41tn was for debt service, and N3.7tn for personnel costs including pension. Further, N3.65tn has been released for capital projects. Most of the delays for capital project release have been earlier legacy issues, in the sense that the new procedure for upload requires a lot of capacity building and delayed uploads.”

N28.75tn was earmarked for the 2024 budget. However, it grew to N35.6tn after amendments by the National Assembly added N6.2tn to the pile.

Responding to queries from journalists, the budget minister said the MTEF would reach the National Assembly on Monday, November 18.

“We are submitting it, I believe, tomorrow [Friday] or, at the latest, on Monday. The office of Mr President will forward the Medium-Term Expenditure Framework and Fiscal Strategy Paper to the National Assembly,” he stated.

The minister also argued that despite the late approval for the MTEF, the FG will maintain the January-December budget implementation cycle.

He affirmed, “We are confident because we have built a respectable relationship with the National Assembly. We have narrowed the areas of misunderstanding. And because of that mutual respect, Mr President is very transparent with the National Assembly leadership. And the National Assembly appreciates that openness.

“He [President] has instructed all his teams to ensure we cooperate with the National Assembly. For instance, the team led by the Coordinating Minister of the Economy has been mandated not only to wait but also to engage the National Assembly and answer all questions at the committee hearings.

“So, I’m confident because of this combination of factors. With this cooperation, I believe we’ll see an expeditious consideration, and immediately we are aware of the approval, we will finalize the budget because the MTEF precedes the budget preparation.”

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