Lagos Assembly Poised to Sanction Underperforming MDAs Amid Budget Reordering

The Lagos State House of Assembly has announced its intention to impose sanctions on underperforming Ministries, Departments, and Agencies (MDAs) following concerns over poor budget execution and inefficient use of public funds.

This move comes in response to Governor Babajide Sanwo-Olu’s request to reorder the 2024 state budget, citing underwhelming implementation of capital projects by several MDAs.

According to official records, only 75% of the ₦2.267 trillion 2024 budget had been implemented by mid-year, a shortfall largely attributed to the inadequate performance of certain MDAs.

While some agencies had nearly depleted their allocated funds, others failed to initiate or complete critical capital projects.

In an address to lawmakers, Speaker of the House, Rt. Hon. Mudashiru Obasa, expressed deep concern over the misuse and mismanagement of the state’s resources.

He emphasized the need for a realignment of the budget to reflect the government’s economic priorities more accurately and ensure optimal public service delivery.

“We cannot continue to approve budgets that are not properly implemented.

Some MDAs have consistently underperformed, and this Assembly will no longer condone inefficiency or negligence in the use of public funds,” Obasa stated.

Following deliberations, the Assembly approved the reordering of ₦151.358 billion within the existing budget. This reallocation is aimed at redirecting funds from non-performing areas to critical sectors that require urgent intervention.

In addition to budget reordering, the Assembly’s Public Accounts Committee has commenced a comprehensive review of the 2022 Auditor-General’s report.

The review focuses on identifying financial irregularities and ensuring compliance with financial regulations across MDAs.

Furthermore, lawmakers have called for sanctions against MDAs that bypass established procurement procedures. The Assembly stressed that adherence to procurement laws is vital to maintaining transparency and integrity in state financial operations.

The Lagos Assembly’s actions underscore a growing commitment to fiscal discipline, transparency, and accountability in governance.

As public scrutiny intensifies, it remains to be seen how the sanctioned MDAs will respond and whether the measures will lead to improved performance in subsequent fiscal cycles.