Lagos economy robust but not immune from oil prices slide, says Fashola

As the continuing fall in oil prices puts some states in financial difficulties resulting in salary arrears being owed workers, Governor Babatunde Fashola of Lagos says the state economy remains robust and capable of discharging its responsibilities to contractors and workers.
Fashola spoke at a special end of year press conference with State House correspondents in Ikeja, on Wednesday, saying the state, which is, however, not immune to the impact of the oil prices which nosedived to $57 per barrel as at Tuesday, has been able to weather the storm because Fashola never based its projections on revenue accruing from the federation account, but on the people whose contributions to the common purse, in terms of taxes, his administration continues to enjoy and leverage on in driving the economy.
According to the governor, the support from the people is a direct consequence of the visible development strides across sectors of the state economy- health, education transportation, housing, power, agriculture, among others.
Zeroing in on the 2014 budget of N489.69 billion and its implementation, he listed the ongoing Adiyan Water Works phase II (which is to deliver 70 million gallons per day on completion), blue line rail and expansion of Lagos-Badagry Expressway as projects that benefitted from the budget. Others are the recently commissioned Mainland Independent Power Plant (IPP) which supplies uninterrupted power to public institutions, the state police command headquarters and street lights within the Ikeja GRA precincts, Ayinke House project at the Lagos State University Teaching Hospital (which is nearing completion) and some completed Maternal Child Centres (MCCs).
“We saw these days coming, so every kobo that this state collected under the Excess Crude Account went into bricks and mortar. I documented everything,  because I knew this day was coming. We invested in infrastructure, while they chose to save — Sovereign Fund. Now the money is devalued. So, the money we kept yesterday has lost in value. What are they recommending now? They said they will increase VAT, meaning you and I are going to pay more for their mismanagement,” Fashola said.
Fashola faulted a statement credited to Vice President Namadi Sambo, alleging that industries in Lagos were groaning under the burden of multiple taxation and relocating to other states. He said the statement had better be a misquote of the VP, because it does not reflect the true state of affairs in the Lagos economy.