Lagos govt’s explanations for shocking spending raise more questions

The Lagos state government has defended controversial expenditures in its 2023 budget that have shocked Nigerians. But the explanations are equally as surprising as they raise further questions.

Line items assigned staggering and disproportionately huge costs became public late last week after Funso Doherty, Action Democratic Congress governorship candidate, published an open letter to Gov. Babajide Sanwo-Olu, seeking explanations.

Why this matters:

Lagos is Nigeria’s richest and most populous state, with an economy bigger than many African countries. The state’s budget for 2023 was N1.76 trillion — compared to Nigeria’s N20.5 trillion.

Yet, Lagos has a reputation for concealing its budgets. Successive governments have mastered the art of shrouding public expenditure details from journalists and civil society organizations, while pretending to be transparent. Any glimpse into spending often reveals scandals.

What’s driving the news:

The details Doherty called attention to are contained in publications made by the state’s public procurement agency. And they are truly concerning for a megacity where two-thirds of its 23.3 residents living below the poverty line, and over 70% living in informal settlements.

The government spent N440 million for a new Lexus LX 600 bulletproof SUV for the governor’s chief of staff; N7.5 million for “liquid fragrance” in the governor’s office; and over half a billion naira for “ad-hoc charter plane expenses”.

Hundreds of millions of naira of public funds went as legal fees for defending Gov Sanwo-Olu’s election – a clearly private matter; and millions more were spent on a political meeting.

Lagosians – and Nigerians – have reacted angrily, demanding explanations.

New details to note

Fatai Onafowote, director-general of Lagos State Procurement Agency, provided one Tuesday morning, apologizing for causing “confusion” in “the public space” and for embarrassing the beneficiaries of the state’s budget.

“It’s never our intent to cast doubt or cause misunderstandings that might tarnish the reputation of respected individuals and organizations involved in these transactions,” he said in a statement.

Onafowote said regretted that specific details of the budget, particularly concerning the descriptions of government dealings, “may have inadvertently led to confusion, impacting both governmental entities and corporate partners providing services to the State.”

“This arose largely from the lack of detailed descriptions in the project information, which has inadvertently led to confusion in the public space,” he added.

To fix this, the agency released government responses to questioned items. The responses are as befuddling, raising more questions as to whether state officials recognize their roles to serve public, not personal, interest.

Explanations raise more questions:

1. On why N440.8 million was spent on a bulletproof SUV for the governor’s chief of staff, the government said, “This is tandem with current economic realities.”
2. On N7.5 million liquid fragrance, the state said: “This covers the entire 2023 period of one year. It is also not limited to Mr Governor’s office but extends to several offices and state houses.”
3. Regarding N20.8 million spent to decorate venue for political delegates congress, a clear political activity for which state funds should not be applied to, the state said: “This was a strategic programme aimed at fostering interaction and collaboration between elected legislators and members of the State Executive Council. Its objective was to provide conducive environment that encouraged dialogue, exchange of ideas, and cohesive engagement among these stakeholders.”
4. On N512.5 million fee for “flying hour expenses on ad-hoc charter plane”, the government said this payment accounts for “past services rendered, wherein outstanding debts owed to the contractor is being reconciled and offset”.
5. On purchase of 10 Hyundai buses for chief of staff’s office at N600 million, the state said the CoS holds oversight responsibilities across multiple MDAs, and the buses were for MDAs not the chief of staff.
6. On N60 million for wife of deputy governor’s “empowerment and outreach programmes”, the government said the amount was for the entire year, with a monthly rate of N5 million.
7. The government’s response on why it spent allegedly spent N2 billion for rechargeable fans, rechargeable lights and fridge in deputy governor’s office, was outright denial. It said the amount was N2 million, not N2 billion. “This is not the case,” it said. “this is what is on the Agency’s website and the registered Letter of Award.”
8. For the vague spending of N100 million for “Transformation agenda for office of Internal Audit”, the state claimed the project was an “extensive capacity building programme for all auditors state-wide and a process re-engineering drive.”
9. One why N18.5 million was spent on supply and distribution of 2,000 Noiler chicken, the government said “this falls under the socio-political responsibilities of government to cater for its citizens.”
10. On why the government spent N531.6 million to renovate St. Andrews Anglican Church, Oke-Popo, the government said the church was built in 1889 and had become a historical landmark. It said the money covered renovation of the church and compensation for the church’s property taken due to road expansion. “The need for the state to preserve such landmark can therefore not be overemphasized,” it said.